Digirad losses widen in Q4, initiates stock buyback

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Digirad, a provider of nuclear cardiology devices, personnel and equipment leasing, saw an uptick in losses for its fiscal 2008 fourth quarter, which ended Dec. 31.

The Poway, Calif.-based company said its net loss was $3.4 million, including $3.8 million in restructuring charges and goodwill impairment that are not expected to recur in coming periods, compared with a net loss of $1.1 million in the fiscal 2007 fourth quarter.

On a positive note, total revenue rose to a record $22 million, compared with $18.8 million in the same period last year, according to Digirad.

"The financial and operational performance in the fourth quarter was a strong indication that a leaner Digirad organization is adopting the changes necessary to move the company forward and generate greater value for our customers and shareholders," said Digirad CEO Todd Clyde.

The company also said that its board of directors has authorized a stock buyback program to repurchase up to an aggregate of $2 million of its issued and outstanding common shares.

Digirad had approximately 19 million shares outstanding at the end of the quarter. At current valuations, the repurchase plan would authorize the buyback of approximately 2.1 million shares, or approximately 11 percent of its outstanding shares.