Novadaq Technologies Inc., a developer of medical imaging systems for the operating room based in Toronto, Wednesday reported a revenue increase of approximately $509,000 in Q2 2006 from approximately $64,000 in Q2 in the previous year. The increase reflects an increase in procedure based revenue resulting from the commercial launch of the SPY System in the US. Procedure based revenue increased by approximately $171,000 or 52 percent from Q1 2006, the company said.
   
Despite this good news, the company saw a net loss increase of $328,000 to approximately $2,612,000 in Q2 2006 from approximately $2,284,000 in Q2 2006 primarily as a result of an increase in sales and marketing costs of approximately $897,000, an increase in research and development expenses of approximately $293,000, a decrease in general and administrative expenses of approximately $581,000, offset partially by an increase in investment returns of approximately $189,000.
   
Quarter to quarter, the company’s net loss increased from Q2 approximately $237,000 from Q1 primarily as a result of increases in sales and marketing and general and administration expenses, partially offset by increased gross profit and exchange gains and reduced research and development expenses, the company said.