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: November 04, 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)
Item 2.02. Results of Operations and Financial Condition On November 4, 2011, Digirad Corporation issued a press release announcing financial results for the three and nine months ended September 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: November 04, 2011 |
DIGIRAD CORPORATION
By: /s/ Todd Clyde |
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Exhibit No. | Description |
99.1 | Press Release of Digirad Corporation dated November 04, 2011 |
Digirad Generates Q3 Net Income; Fourth Consecutive Quarter Positive Cash
POWAY, CA -- (Marketwire - November 04, 2011) - Digirad Corporation (NASDAQ: DRAD) today reported 2011 third quarter revenue of $13.4 million, 2011 nine-month revenue of $41.9 million and an ending cash and available-for-sale securities balance of $31.6 million at September 30, 2011.
Digirad CEO Todd Clyde commented: "We continue to improve our operating margins, grow our revenue modestly and generate cash for the fourth quarter in a row. We increased camera revenue in our product business segment, which was up 12.4 percent compared to the third quarter of 2010, thanks in part to our new ergo general purpose portable imaging system. Revenue from our Digirad Imaging Solutions business, or DIS, decreased from last quarter and the third quarter of last year, which we believe is due to the seasonality of that business and the continued reimbursement pressures and uncertainty in the overall healthcare market."
Clyde continued: "In our DIS business, we have made it a priority to work closely with our current physician customers and help maximize imaging operations of our existing customers. We remain optimistic about the acceptance our portable ergo camera is having in the marketplace. While sales of ergo have not grown as quickly as we hoped, we believe that we are building a base through our marketing of ergo, which will result in better future sales, once capital expenditures in hospitals begin to increase."
Third Quarter 2011 Summary
Year-to-Date Financial Highlights:
"We remain focused on our revenue, profit and cash goals for 2011 as well as investigating several strategic opportunities," Clyde concluded. "We improved our operational performance considerably this year, as is evidenced by our expanded margins and lower operating expenses. We continue to generate cash and alter our business model to align with the variability in our business caused by the uncertain healthcare environment. Furthermore, we will increase our spending in the fourth quarter to assess several strategic opportunities to better position our business for growth and profitability, in the long-term."
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 877-941-1427 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 Nine Months Ended September 30, September 30, -------------------- -------------------- 2011 2010 2011 2010 --------- --------- --------- --------- Revenues: DIS $ 9,293 $ 9,612 $ 28,839 $ 30,121 Product 4,146 3,687 13,024 11,405 --------- --------- --------- --------- Total revenues 13,439 13,299 41,863 41,526 Cost of revenues: DIS 7,048 7,941 22,582 24,912 Product 2,241 2,244 7,617 8,218 --------- --------- --------- --------- Total cost of revenues 9,289 10,185 30,199 33,130 --------- --------- --------- --------- Gross profit 4,150 3,114 11,664 8,396 Operating expenses: Research and development 702 683 2,124 2,278 Marketing and sales 1,575 1,389 4,616 4,569 General and administrative 1,848 2,417 5,818 6,817 Amortization of intangible assets 77 94 253 333 Restructuring loss (gain) -- -- (164) 355 --------- --------- --------- --------- Total operating expenses 4,202 4,583 12,647 14,352 --------- --------- --------- --------- Loss from operations (52) (1,469) (983) (5,956) Other income (expense): Interest income 105 80 385 289 Interest (expense) -- (1) (20) (5) Other income 46 54 103 17 --------- --------- --------- --------- Total other income 151 133 468 301 --------- --------- --------- --------- Net income (loss) $ 99 $ (1,336) $ (515) $ (5,655) ========= ========= ========= ========= Net income (loss) per common share - basic and diluted $ 0.01 $ (0.07) $ (0.03) $ (0.30) ========= ========= ========= ========= Weighted average shares outstanding - basic 19,086 18,811 19,005 18,740 Weighted average shares outstanding - diluted 19,714 18,811 19,005 18,740 ========= ========= ========= ========= Stock-based compensation expense is included in the above as follows: Cost of DIS revenue $ 3 $ 5 $ 11 $ 22 Cost of Product revenue 23 13 76 40 Research and development 20 13 63 40 Marketing and sales 22 27 87 77 General and administrative 121 280 375 509 --------- --------- --------- --------- Total stock-based compensation expense $ 189 $ 338 $ 612 $ 688 --------- --------- --------- --------- Digirad Corporation Consolidated Balance Sheets (In thousands, except share amounts) September 30, December 31, 2011 2010 ------------- ------------- (Unaudited) Assets Current assets: Cash and cash equivalents $ 10,258 $ 20,459 Securities available-for-sale 21,381 9,788 Accounts receivable, net 7,097 7,527 Inventories, net 5,867 5,432 Other current assets 1,011 1,038 ------------- ------------- Total current assets 45,614 44,244 Property and equipment, net 5,806 7,185 Intangible assets, net 554 808 Goodwill 184 184 Other non-current assets 46 -- ------------- ------------- Total assets $ 52,204 $ 52,421 ============= ============= Liabilities and stockholders' equity Accounts payable $ 1,665 $ 1,871 Accrued compensation 2,415 1,600 Accrued warranty 405 378 Deferred revenue 1,863 2,379 Other accrued liabilities 1,898 2,096 ------------- ------------- Total current liabilities 8,246 8,324 Deferred rent 130 138 ------------- ------------- Total liabilities 8,376 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; 18,868,272 and 18,597,311 shares issued and outstanding (net of treasury shares) at September 30, 2011 and December 31, 2010, respectively 2 2 Treasury stock, at cost; 573,218 shares at September 30, 2011 and December 31, 2010 (1,039) (1,039) Additional paid-in capital 155,507 154,785 Accumulated other comprehensive income (loss) (275) 63 Accumulated deficit (110,367) (109,852) ------------- ------------- Total stockholders' equity 43,828 43,959 ------------- ------------- Total liabilities and stockholders' equity $ 52,204 $ 52,421 ============= =============
Investor Contact: Matt Clawson Allen & Caron 949-474-4300 matt@allencaron.com Company Contact: Richard Slansky CFO 858-726-1600 ir@digirad.com