iCAD closes distance on losses in Q4, year-end

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iCAD, a provider of computer-aided detection (CAD) solutions for the early detection of cancer, published its financial results for the fourth quarter and year, which ended Dec. 31, 2007. 

For the quarter, the Nashua, N.H.-based company reported total revenues of $8.1 million, a 26 percent increase compared with total revenue of $6.4 million for the fourth quarter of 2006. iCAD attributed the increase to continued growth in its digital products revenue, as well as solid growth in film-based product revenue and service revenue. 

Operating expenses for the fourth quarter declined by 8 percent, to $5.9 million, compared to $6.4 million for the fourth quarter of 2006.

Net income for the quarter was $525,000, compared with a net loss of $1.4 million in the prior-year quarter.

This marks the first profitable quarter since the first quarter of 2005, the company said. 
For the year, total revenue increased 35 percent to $26.6 million compared with total revenue of $19.7 million in 2006.  Operating expenses for 2007 were $22.5 million as compared to $21.9 million for 2006.

The net loss for 2007 was $1.5 million, an improvement of $5.1 million compared with the net loss for 2006 of $6.6 million, the company said.
Looking ahead to 2008, the company said it expects total revenue for the first six months of 2008 to be in the range of $15 million to $16 million and anticipates operating expenses will be between $5.6 million and $5.9 million per quarter for the first two quarters of 2008. This guidance includes the effect of anticipated revenue from the sale of its SecondLook Digital and TotalLook products to FujiFilm globally commencing in the second quarter, iCAD said.

“Last year [2007] was a very strong year for iCAD as we posted record total revenue, turned the corner on profitability, generated positive cash flow for the second half of the year and significantly strengthened our balance sheet,“ said Ken Ferry, president and CEO.  “The market for digital CAD for mammography continues to experience strong growth as evidenced by our 60 percent revenue growth in this area during 2007, and reflects the growing acceptance of full-field digital mammography technology and CAD as the standard of care,” he added.