Digirad net income slides in Q1

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Digirad, a provider of medical diagnostic imaging systems and services, has reported a net loss of $1.4 million, compared to net income of $74,000 for the year prior, for the first fiscal quarter, which ended March 31.

The Poway, Calif.-based Digirad said that consolidated revenues were higher, compared to the same time period in 2007, due to an increase in mobile imaging services revenues within Digirad Imaging Solutions (DIS). Quarterly net revenue grew to $18.3 million from $17.5 million in the comparable period last year, Digirad said.

The company also noted that DIS revenue rose 13.6 percent to $13.9 million from $12.2 million in first-quarter 2007, due primarily to the introduction of ultrasound imaging services.

However, the company said its product division experienced a downturn in large part due to the difficult market conditions during the quarter.

Operating expenses were relatively unchanged from the year ago period, but the effects of weaker margins and lower product sales contributed to the loss in the quarter, according to the company.

“We are clearly disappointed with the performance of our product division during first quarter, but we remain cautiously optimistic that these results reflect more of an acute phase than a systemic problem. And while it can be difficult to predict future results, early indications show that bookings and shipments have picked up during the first few weeks of April,” said Mark Casner, CEO of Digirad.

The company said it anticipates fiscal-2008 consolidated revenues between $75 million and $81 million, while it expects a consolidated net loss between $2 million and $4.5 million, including estimated stock-based compensation expense of $1 million.