UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: July 27, 2011
(Date of earliest event reported)
Digirad Corporation
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
000-50789
(Commission File Number)
33-0145723
(IRS Employer
Identification Number)
13950 Stowe Drive, Poway, CA
(Address of principal executive offices)
92064
(Zip Code)
(858) 726-1600
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
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Item 2.02. Results of Operations and Financial Condition On July 27, 2011, Digirad Corporation issued a press release announcing financial results for the three and six months ended June 30, 2011. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The disclosure herein under Item 2.02 and the related exhibit are being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, or otherwise subject to the liability of that section, nor shall they be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: July 27, 2011 |
DIGIRAD CORPORATION
By: /s/ Todd Clyde |
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| Exhibit No. | Description |
| 99.1 | Press Release of Digirad Corporation dated July 27, 2011 |
Service Growth Continues; Cash, Investments Exceed $31.1 Million
POWAY, CA -- (Marketwire - July 27, 2011) - Digirad Corporation (NASDAQ: DRAD) today reported 2011 second quarter revenue of $14.2 million, 2011 six-month revenue of $28.4 million and an ending cash and available-for-sale securities balance of $31.1 million at June 30, 2011.
Digirad CEO Todd Clyde stated, "Positive progress continues at Digirad as we returned to year-over-year revenue growth. Our DIS business performed well as we continued to add new customers, generate additional revenue and expand margins. Our camera sales were flat compared to the first quarter of 2011, impacted by a generally weak capital equipment marketplace."
Clyde continued, "Although we are disappointed our camera sales are not increasing at a higher rate, camera bookings were stronger in the second quarter as compared to the first quarter of 2011 and we continue to see customer interest in our ergo™ general purpose portable imaging system. We are strengthening our camera marketing initiatives and recently announced the hiring of Armando Jackson as Vice President of Product Sales. We are ahead of our plan to generate cash in 2011, due in part to our operational improvement in our DIS business and our continued management of the balance sheet."
Second Quarter 2011 Summary
Year-to-Date Financial Highlights:
Richard Slansky, CFO, added, "We generated positive cash from operations of approximately $0.8 million in the second quarter and ended the period with a total cash and investments position of $31.1 million. Total operating expenses continued to decline year-over-year as a function of cost reduction measures implemented in the past 2 years, and we anticipate maintaining strict controls on spending -- even as we invest in new opportunities for growth and expansion."
"To repeat our goals for 2011," Clyde concluded, "We expect to: 1) generate free cash flow for the full year 2011; 2) increase ergo sales by further driving imaging to the point of care; 3) expand margins in both our Product and DIS businesses; and 4) achieve consolidated top-line revenue growth in the second half of the year. We have some ground to make-up with our camera sales and are committed to driving improvements."
Conference Call Information
A conference call is scheduled for 11:00 a.m. EDT today to discuss the results and management's outlook. The call may be accessed by dialing 877-941-8416 five minutes prior to the scheduled start time and referencing Digirad. A simultaneous webcast of the call may be accessed online from the Events & Presentations link on the Investor Relations page at www.digirad.com; an archived replay of the webcast will be available within 15 minutes of the end of the conference call.
About Digirad Corporation
Digirad is a leading provider of diagnostic imaging products, and personnel and equipment leasing services. For more information, please visit www.digirad.com. Digirad®, Digirad Imaging Solutions®, and Cardius® are registered trademarks of Digirad Corporation.
Forward-Looking Statements
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our ability to deliver value to customers, our expanded product and service offerings, including, the addition of the first large-field-of-view, solid state portable camera to the hospital marketplace, and our ability to generate positive cash flow in 2011. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made, including the risks associated with changes in business conditions, technology, customers' business conditions, reimbursement, radiopharmaceutical shortages, economic outlook, operational policy or structure, acceptance and use of Digirad's camera systems and services, reliability, recalls, and other risks detailed in Digirad's filings with the U.S. Securities and Exchange Commission, including Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports. Readers are cautioned to not place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, and Digirad undertakes no obligation to revise or update the forward-looking statements contained herein.
Digirad Corporation
Consolidated Statements of Operations
(Unaudited and in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
Revenues:
DIS $ 9,950 $ 9,787 $ 19,546 $ 20,509
Product 4,299 3,372 8,878 7,718
--------- --------- --------- ---------
Total revenues 14,249 13,159 28,424 28,227
Cost of revenues:
DIS 7,772 8,172 15,534 16,974
Product 2,483 3,079 5,376 5,974
--------- --------- --------- ---------
Total cost of revenues 10,255 11,251 20,910 22,948
--------- --------- --------- ---------
Gross profit 3,994 1,908 7,514 5,279
Operating expenses:
Research and development 714 870 1,422 1,595
Marketing and sales 1,617 1,551 3,041 3,181
General and administrative 1,866 2,139 3,970 4,400
Amortization of intangible
assets 83 107 176 239
Restructuring loss (gain) -- 352 (164) 352
--------- --------- --------- ---------
Total operating expenses 4,280 5,019 8,445 9,767
--------- --------- --------- ---------
Loss from operations (286) (3,111) (931) (4,488)
Other income (expense):
Interest income 72 88 280 209
Interest expense (7) (2) (20) (3)
Other income (expense) (7) (59) 57 (37)
--------- --------- --------- ---------
Total other income 58 27 317 169
--------- --------- --------- ---------
Net loss $ (228) $ (3,084) $ (614) $ (4,319)
========= ========= ========= =========
Net loss per common share -
basic and diluted $ (0.01) $ (0.16) $ (0.03) $ (0.23)
========= ========= ========= =========
Weighted average shares
outstanding - basic and diluted 18,988 18,738 18,963 18,704
========= ========= ========= =========
Stock-based compensation expense
is included in the above as
follows:
Cost of DIS revenue $ 4 $ 10 $ 8 $ 18
Cost of Product revenue 24 16 53 27
Research and development 20 17 43 26
Marketing and sales 29 31 65 50
General and administrative 119 95 254 228
--------- --------- --------- ---------
Total stock-based compensation
expense $ 196 $ 169 $ 423 $ 349
--------- --------- --------- ---------
Digirad Corporation
Consolidated Balance Sheets
(In thousands, except share amounts)
June 30, December 31,
2011 2010
------------ ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 9,369 $ 20,459
Securities available-for-sale 21,771 9,788
Accounts receivable, net 8,077 7,527
Inventories, net 6,061 5,432
Other current assets 832 1,038
------------ ------------
Total current assets 46,110 44,244
Property and equipment, net 5,860 7,185
Intangible assets, net 632 808
Goodwill 184 184
------------ ------------
Total assets $ 52,786 $ 52,421
============ ============
Liabilities and stockholders' equity
Accounts payable $ 2,332 $ 1,871
Accrued compensation 1,972 1,600
Accrued warranty 403 378
Deferred revenue 2,069 2,379
Other accrued liabilities 2,301 2,096
------------ ------------
Total current liabilities 9,077 8,324
Deferred rent 134 138
------------ ------------
Total liabilities 9,211 8,462
------------ ------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value: 10,000,000
shares authorized; no shares issued or
outstanding -- --
Common stock, $0.0001 par value: 80,000,000
shares authorized; 18,726,561 and 18,597,311
shares issued and outstanding (net of treasury
shares) at June 30, 2011 and December 31, 2010,
respectively 2 2
Treasury stock, at cost; 573,218 shares at June
30, 2011 and December 31, 2010 (1,039) (1,039)
Additional paid-in capital 155,216 154,785
Accumulated other comprehensive income (137) 63
Accumulated deficit (110,467) (109,852)
------------ ------------
Total stockholders' equity 43,575 43,959
------------ ------------
Total liabilities and stockholders' equity $ 52,786 $ 52,421
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Investor Contact: Matt Clawson Allen & Caron 949-474-4300 matt@allencaron.com Company Contact: Richard Slansky CFO 858-726-1600 ir@digirad.com