Net sales increased to $6.5 million last year, compared with $5 million in 2002. The company also reported a net loss of $8.4 million, compared with a net loss of $9.4 million in 2002. The loss included approximately $3 million in non-recurring legal and related expenses associated with the resolution of patent litigation; a $1.4 million one-time, non-cash charge associated with the restructuring and improvement of the company's product distribution channels; and costs related to channel development and merger activities.
iCAD merged with CADx Systems Inc. and its parent company, Qualia Computing Inc., on Dec. 31, 2003.
iCAD President and CEO W. Scott Parr said the company does "not believe that iCAD's reported results for the fourth quarter or full year 2003 are indicative of the company's future prospects."
Since the transaction closed, Parr said the company has "executed a methodical, step-by-step plan to increase revenues by consolidating sales channels and defining an industry-leading continuum of CAD products. We have also taken steps to reduce projected operating costs by approximately $4 million on an annualized basis."
In the first quarter of 2004, iCAD began to cut costs with the closure of offices in Tampa, Fla., and San Rafael, Calif., as well as reducing staffing and eliminating duplication in marketing, administrative and other activities. Those actions and others are expected to reduce operating costs by approximately $4 million annually.