Digirad reported deeper losses for the fourth quarter, which ended Dec. 31, 2007, on higher annual revenues and lower operating expenses for the year in unaudited financial results.
For the quarter, the Poway, Calif.-based company reported consolidated revenues for the quarter of $18.8 million, up nine percent from $17.2 million in fourth-quarter 2006. Revenue from its mobile imaging services division rose 16 percent to $13.4 million from $11.6 million in fourth-quarter 2006. Product-related revenue was $5.4 million, and included sales of 18 cameras, compared to $5.6 million in fourth-quarter 2006, including sales of 17 cameras.
Net loss for the quarter was $1.1 million, compared to a fourth-quarter 2006 net loss of $149,000. The $1 million increase in net loss for fourth-quarter 2007 was due in part to a decline in its imaging services division (DIS) gross profit, increased amortization costs associated with the intangible assets arising from the Ultrascan acquisition of $185,000, and a fourth-quarter charge of $300,000 primarily from impairment of certain long-term assets, according to the company.
Despite higher net losses for the fourth quarter, Digirad said net loss for the year declined more than 75 percent to $1.4 million, compared to a net loss of $6.3 million incurred in 2006. Total operating expenses for full-year 2007 declined to $23.4 million from $27.3 million in 2006.
"We are pleased with our achievements in 2007: our acquisition of Ultrascan, the launch of our Centers of Influence strategy, the improvement in our product margins, and the reduction of our operating loss by $5.4 million compared to 2006," said Chief Executive Officer Mark Casner.
Casner said that looking forward, Digirad’s key focus for 2008 will be driving DIS revenue growth through its Centers of Influence strategy, which he said should translate into a profitable 2008 for the DIS business.