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: February 17, 2012
(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 February 17, 2012, Digirad Corporation issued a press release announcing financial results for the three and twelve months ended December 31, 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.
|
Dated: February 17, 2012 |
DIGIRAD CORPORATION
By: /s/ Todd Clyde |
|
|
Exhibit No. | Description |
99.1 | Press Release of Digirad Corporation dated February 17, 2012 |
Achieves Positive Cash From Operations; Improved Product and DIS Gross Margins for Year
POWAY, CA -- (Marketwire - February 17, 2012) - Digirad Corporation (NASDAQ: DRAD) today reported 2011 fourth quarter revenue of $11.9 million, 2011 full-year revenue of $53.7 million and an ending cash and available-for-sale securities balance of $30.5 million at December 31, 2011.
Digirad CEO Todd Clyde commented, "We laid out four key goals at the beginning of the year: generate positive cash flow, increase ergo sales, expand margins in both our Product and DIS business units and return to year-over-year growth in the second half of the year. We achieved the first three goals, but fell short on revenue growth due to a relatively weak fourth quarter in the Product division.
Clyde continued: "Going forward, we are seeing improvements in the capital equipment environment, more activity in the sales funnel on the Product side, continued stabilization in reimbursements and new opportunities in new camera markets. In 2012, we expect to continue to generate positive cash flow from our DIS business and to increase sales of both our cardiac and ergo cameras. We invested in strategic market research in the fourth quarter -- resulting in a better understanding of where our core technologies can be applied with greater success. Management and the Board are in the final stages of determining the best strategic path toward returning to a growth platform, and we look forward to communicating the specifics of those plans in the near future."
Fourth Quarter 2011 Summary
2011 Full-Year Financial Highlights:
Conference Call Information
A conference call is scheduled for 11:00 a.m. EST 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® 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 (in thousands, except per share data) Three Months Ended Year Ended December 31, December 31, ---------------------- ---------------------- 2011 2010 2011 2010 ---------- ---------- ---------- ---------- Revenues: DIS $ 8,956 $ 9,421 $ 37,794 $ 39,542 Product 2,926 5,236 15,951 16,641 ---------- ---------- ---------- ---------- Total revenues 11,882 14,657 53,745 56,183 Cost of revenues: DIS 7,090 7,649 29,672 32,561 Product 1,698 3,400 9,315 11,618 ---------- ---------- ---------- ---------- Total cost of revenues 8,788 11,049 38,987 44,179 ---------- ---------- ---------- ---------- Gross profit 3,094 3,608 14,758 12,004 Operating expenses: Research and development 613 597 2,738 2,875 Marketing and sales 3,007 1,353 7,622 5,922 General and administrative 2,024 2,190 7,741 9,007 Amortization of intangible assets 77 102 331 435 Restructuring loss (gain) -- -- (164) 355 ---------- ---------- ---------- ---------- Total operating expenses 5,721 4,242 18,268 18,594 ---------- ---------- ---------- ---------- Loss from operations (2,627) (634) (3,510) (6,590) Other income (expense): Interest income (expense) (199) 89 165 378 Other income (expense) -- (14) 3 (2) ---------- ---------- ---------- ---------- Total other income (199) 75 168 376 ---------- ---------- ---------- ---------- Net loss $ (2,826) $ (559) $ (3,342) $ (6,214) ========== ========== ========== ========== Net loss per common share -basic and diluted $ (0.15) $ (0.03) $ (0.18) $ (0.33) ========== ========== ========== ========== Weighted average shares outstanding - basic 19,193 18,876 19,052 18,774 Weighted average shares outstanding - diluted 19,193 18,876 19,052 18,774 ========== ========== ========== ========== Stock-based compensation expense is included in the above as follows: Cost of DIS revenue $ 2 $ 4 $ 13 $ 26 Cost of Product revenue 23 20 99 60 Research and development 20 21 84 61 Marketing and sales 24 36 110 113 General and administrative 119 105 494 614 ---------- ---------- ---------- ---------- Total stock-based compensation expense $ 188 $ 186 $ 800 $ 874 ---------- ---------- ---------- ---------- Digirad Corporation Consolidated Balance Sheets (In thousands, except share amounts) December 31, December 31, 2011 2010 ------------ ------------ Assets Current assets: Cash and cash equivalents $ 24,039 $ 20,459 Securities available-for-sale 6,413 9,788 Accounts receivable, net 6,320 7,527 Inventories, net 6,178 5,432 Other current assets 855 861 Restricted cash 194 -- ------------ ------------ Total current assets 43,999 44,067 Property and equipment, net 5,367 7,185 Intangible assets, net 477 808 Goodwill 184 184 ------------ ------------ Total assets $ 50,027 $ 52,244 ============ ============ Liabilities and stockholders' equity Accounts payable $ 1,330 $ 1,694 Accrued compensation 2,291 1,600 Accrued warranty 297 378 Deferred revenue 2,099 2,379 Other accrued liabilities 2,397 2,096 ------------ ------------ Total current liabilities 8,414 8,147 Deferred rent 126 138 ------------ ------------ Total liabilities 8,540 8,285 ------------ ------------ 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; 18,901,160 and 18,597,311 shares issued and outstanding (net of treasury shares) at December 31, 2011 and 2010, respectively 2 2 Treasury stock, at cost; 582,825 shares and 573,218 shares at December 31, 2011 and 2010, respectively (1,058) (1,039) Additional paid-in capital 155,704 154,785 Accumulated other comprehensive income 33 63 Accumulated deficit (113,194) (109,852) ------------ ------------ Total stockholders' equity 41,487 43,959 ------------ ------------ Total liabilities and stockholders' equity $ 50,027 $ 52,244 ============ ============
Investor Contact: Matt Clawson Allen & Caron 949-474-4300 matt@allencaron.com Company Contact: Richard Slansky CFO 858-726-1600 ir@digirad.com