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 1, 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)
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Item 2.02. Results of Operations and Financial Condition On November 1, 2012, Digirad Corporation issued a press release announcing financial results for the three and nine months ended September 30, 2012. 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 1, 2012 |
DIGIRAD CORPORATION
By: /s/ Jeffry R. Keyes |
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| Exhibit No. | Description |
| 99.1 | Press Release of Digirad Corporation dated November 1, 2012 |
POWAY, CA -- (Marketwire - November 01, 2012) - Digirad Corporation (NASDAQ: DRAD) today reported 2012 third quarter revenue of $11.8 million, 2012 nine-month revenue of $37.5 million and an ending cash, cash equivalents and available-for-sale securities balance of $27.2 million. The net use of cash during the nine months ended September 30, 2012 included approximately $1.0 million to repurchase approximately 490,000 shares of Digirad common stock under the Company's stock repurchase program.
Digirad CEO Todd Clyde commented, "The Digirad Imaging Solutions (DIS) business continued to generate cash in the 2012 third quarter, though revenues in the period lagged slightly due to a lower-than-normal number of days serviced during the summer season. In addition, hospital and cardiology practice camera sales continued to be soft, although we have seen orders and unit sales begin to rebound recently, delivering positive momentum to kick off the fourth quarter."
Clyde continued, "It has been a time of substantial change and progress within the Company following the recent restructuring of our Board of Directors. We have made positive changes to our executive team, including a new CFO and new leadership for our commercial operations team. In addition, we are nearing the end of the in-depth business assessment being undertaken by the Company, led by the Board's Strategic Advisory committee. We look forward to sharing the resulting strategy to drive growth and deliver increasing shareholder value in the near future."
Third Quarter 2012 Summary
Year-to-Date Financial Highlights:
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 877-941-4775 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. Digirad also provides the ability for its physician customers to lease its qualified personnel, imaging systems and related items required to perform nuclear imaging in their own offices. 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 the Company's 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 the Company's ability to generate positive cash flow in 2012. 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 the 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
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2012 2011 2012 2011
---------- ---------- ---------- ----------
Revenues:
DIS $ 8,856 $ 9,293 $ 27,522 $ 28,839
Product 2,961 4,146 9,975 13,024
---------- ---------- ---------- ----------
Total revenues 11,817 13,439 37,497 41,863
Cost of revenues:
DIS 6,880 7,048 20,765 22,582
Product 1,808 2,241 6,250 7,617
---------- ---------- ---------- ----------
Total cost of revenues 8,688 9,289 27,015 30,199
---------- ---------- ---------- ----------
Gross profit 3,129 4,150 10,482 11,664
Operating expenses:
Research and development 1,055 702 2,998 2,124
Marketing and sales 1,348 1,575 4,735 4,616
General and administrative 1,744 1,848 5,820 5,818
Amortization of intangible
assets 49 77 184 253
Restructuring gain -- -- -- (164)
---------- ---------- ---------- ----------
Total operating expenses 4,196 4,202 13,737 12,647
---------- ---------- ---------- ----------
Loss from operations (1,067) (52) (3,255) (983)
Other income (expense):
Interest income 28 105 82 385
Interest expense (2) -- (3) (20)
Other income 135 46 111 103
---------- ---------- ---------- ----------
Total other income 161 151 190 468
---------- ---------- ---------- ----------
Net income (loss) $ (906) $ 99 $ (3,065) $ (515)
========== ========== ========== ==========
Net income (loss) per common
share - basic and diluted $ (0.05) $ 0.01 $ (0.16) $ (0.03)
========== ========== ========== ==========
Weighted average shares
outstanding - basic 19,263 19,086 19,273 19,005
========== ========== ========== ==========
Weighted average shares
outstanding - diluted 19,263 19,714 19,273 19,005
========== ========== ========== ==========
Other comprehensive income
(loss):
Unrealized gain (loss) on
marketable securities 32 (137) 26 (338)
---------- ---------- ---------- ----------
Total other comprehensive
income (loss) 32 (137) 26 (338)
---------- ---------- ---------- ----------
Comprehensive loss $ (874) $ (38) $ (3,039) $ (853)
========== ========== ========== ==========
Stock-based compensation
expense is included in the
above as follows:
Cost of DIS revenue $ 2 $ 3 $ 5 $ 11
Cost of Product revenue 20 23 62 76
Research and development 20 20 59 63
Marketing and sales 34 22 100 87
General and administrative 68 121 245 375
---------- ---------- ---------- ----------
Total stock-based
compensation expense $ 144 $ 189 $ 471 $ 612
========== ========== ========== ==========
Digirad Corporation
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
September 30, December 31,
2012 2011
------------- -------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 18,343 $ 24,039
Securities available-for-sale 8,826 6,413
Accounts receivable, net 6,864 6,320
Inventories, net 6,573 6,178
Other current assets 722 855
Restricted cash 244 194
------------- -------------
Total current assets 41,572 43,999
Property and equipment, net 5,148 5,367
Intangible assets, net 293 477
Goodwill 184 184
------------- -------------
Total assets $ 47,197 $ 50,027
============= =============
Liabilities and stockholders' equity
Accounts payable $ 1,906 $ 1,330
Accrued compensation 2,736 2,291
Accrued warranty 226 297
Deferred revenue 1,748 2,099
Other accrued liabilities 2,263 2,397
------------- -------------
Total current liabilities 8,879 8,414
Deferred rent 164 126
------------- -------------
Total liabilities 9,043 8,540
------------- -------------
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; 19,102,037 and 18,901,160
shares issued and outstanding (net of treasury
shares) at September 30, 2012 and December 31,
2011, respectively 2 2
Treasury stock, at cost; 1,073,641 shares and
582,825 shares at September 30, 2012 and
December 31, 2011, respectively (2,087) (1,058)
Additional paid-in capital 156,472 155,704
Accumulated other comprehensive income 26 33
Accumulated deficit (116,259) (113,194)
------------- -------------
Total stockholders' equity 38,154 41,487
------------- -------------
Total liabilities and stockholders' equity $ 47,197 $ 50,027
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Investor Contact: Matt Clawson Allen & Caron 949-474-4300 matt@allencaron.com Company Contact: Jeffry Keyes CFO 858-726-1600 ir@digirad.com