Digirad posts losses despite higher revenues in Q3

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Digirad has reported mixed financial results for its 2008 third-quarter, which ended Sept. 30.

For the quarter, the company saw total revenue increase to $20.2 million, compared to $18.8 million in third-quarter 2007. DIS revenues grew to $14 million from $13.5 million in third-quarter 2007, and product sales increased to $6.2 million from $5.3 million in third-quarter 2007. Total revenue for the first and second quarters of 2008 was $18.3 million and $19.9 million, respectively.

Operating expenses were $5.8 million, or 29 percent of revenue, compared to $5.7 million, or 31 percent of revenue, in third-quarter 2007. Operating expenses for the first and second quarters of 2008 were $6.1 million and $6.0 million, respectively.

However, Digirad booked a net loss of $869,000, compared to net loss of $588,000 in third-quarter 2007; the increase in net loss is primarily due to a $272,000 reduction in interest and other income compared to third-quarter 2007. Net loss for the first and second quarters of 2008 was $1.4 million and $1.2 million, respectively.

DIS asset utilization was 57 percent on 158 systems (nuclear and ultrasound), compared to 62 percent on 135 systems (nuclear and ultrasound) during third-quarter 2007.

Additionally, the company updated its financial outlook, anticipating consolidated revenues in a range of $77 million to $78.5 million, consisting of DIS revenue of $55 million to $56 million and product-related revenue of $22 million to $22.5 million. It expects a consolidated net loss in a range of $3.5 million to $4.5 million, including estimated stock-based compensation expense of $750,000.