Digital gamma camera developer Digirad of San Diego has slashed its workforce by one-third and its CEO has left the company, according to an article in the San Diego Union-Tribune. The company has indefinitely postponed its plans to go public, according to the newspaper.
Digirad has laid off about 85 employees since February 20, the paper reported last month. Former chief executive Scott Huennekens also left last month, for personal reasons. David Sheehan and CFO John Dahldorf have been named co-chief executives of the firm.
In August 2001, Digirad filed papers with the U.S. Securities and Exchange Commission in preparation for an initial public offering. But the IPO was pulled after the September 11 terrorist attacks, and since then has been postponed indefinitely, Digirad executives told the Union-Tribune.
The company had planned to use the IPO to fund its growth, but after September 11 the market dried up, they said. The company is "right-sizing" its operations to match an anticipated slowdown in revenues, the newspaper reported. Digirad executives were not available for comment to AuntMinnie.com at press time.
SEC filings indicate that Digirad had revenues of $14 million for the first six months of 2001 (end-June 30). Product sales made up $9.8 million of that total, while imaging services contributed $4.2 million. That compares to total revenue of $1.5 million in the same period of 2000. Digirad posted a net loss of $5.8 million in the first half of 2001, according to the filings.
By AuntMinnie.com staff writers
April 11, 2002
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