MINNEAPOLIS, May 22, 2012 (GLOBE NEWSWIRE) -- Navarre (Nasdaq:NAVR - News), a leading distributor, provider of e-commerce fulfillment solutions, and publisher of computer software, today announced its financial results for the fourth quarter and 2012 fiscal year ended March 31, 2012.
Fourth Quarter Fiscal Year 2012 Results
- Net sales from continuing operations were $116.7 million and at the high end of the Company's expectations, as compared to net sales from continuing operations of $124.3 million during the fourth quarter of the prior year. Net sales gains in consumer electronics and accessories more than offset declines in computer software products during the quarter. The total net sales shortfall as compared to the prior year's fourth quarter was attributed to the home video category as the Company and its customers continue to deemphasize these products.
- Adjusted pro forma operating expenses from continuing operations were reduced by 28% or $4.5 million to $11.5 million during the fourth quarter, as compared to operating expenses from continuing operations of $16.1 million in the prior year. (See "Use of Non-GAAP Financial Information" below.)
- Adjusted pro forma income from continuing operations increased by $1.0 million during the fourth quarter to $562,000, as compared to a $433,000 loss from continuing operations before income tax in the prior year. (See "Use of Non-GAAP Financial Information" below.)
- Net loss from continuing operations for the fourth quarter of fiscal year 2012 was $3.3 million, or a loss of $0.09 per diluted share, versus net income from continuing operations of $9.8 million, or $0.26 per diluted share, in the same period of the prior year. This year's fourth quarter results include pre-tax restructuring and other charges in the amount of $6.7 million. The prior year's fourth quarter included a $9.7 million, or $0.26 per diluted share, income tax benefit arising out of the reversal of a valuation allowance recorded against deferred tax assets.
- Adjusted pro forma EBITDA from continuing operations increased by 91% to $1.6 million for the fourth quarter, as compared to adjusted pro forma EBITDA from continuing operations of $860,000 in the prior year. (See "Use of Non-GAAP Financial Information" below.)
- The Company had no debt and a cash balance of $5.6 million at March 31, 2012, versus no debt and a zero cash balance at the prior fiscal year end.
Fiscal Year 2012 Results
- Net sales from continuing operations for the 2012 fiscal year were $480.8 million, as compared to net sales of $490.9 million for the prior year. During the 2012 fiscal year net sales gains in consumer electronics and accessories more than offset declines in computer software products.
- Adjusted pro forma operating expenses from continuing operations were reduced by 13% or $7.5 million to $51.8 million during the 2012 fiscal year, as compared to operating expenses from continuing operations of $59.2 million in the prior year. (See "Use of Non-GAAP Financial Information" below.)
- Adjusted pro forma income from continuing operations during the 2012 fiscal year was $3.1 million, as compared to operating income of $6.0 million from continuing operations before income tax in the prior year. (See "Use of Non-GAAP Financial Information" below.)
- Net loss from continuing operations for the 2012 fiscal year was $34.3 million, or a loss of $0.93 per diluted share, as compared to net income from continuing operations of $12.5 million, or $0.34 per diluted share, in the prior fiscal year. Fiscal year 2012 net income includes pre-tax restructuring and other charges in the amount of $19.6 million and a non-cash write-off of goodwill and intangibles in the amount of $6.0 million. The prior year also included a $9.7 million, or $0.26 per diluted share, income tax benefit arising out of the reversal of a valuation allowance recorded against deferred tax assets.
- Adjusted pro forma EBITDA from continuing operations for the 2012 fiscal year was $7.7 million, as compared to adjusted pro forma EBITDA from continuing operations of $10.9 million in the prior fiscal year. (See "Use of Non-GAAP Financial Information" below.)
Richard Willis, Chief Executive Officer, commented, "I'm pleased to have achieved our revenue and EBITDA goals for the 2012 fiscal year while carrying out a significant restructuring initiative. Over the past two quarters our management team kept on task and delivered solid operating results while driving major changes in our business processes and personnel. Our ability to perform under these demanding circumstances gives me confidence that we will achieve meaningful EBITDA growth in the 2013 fiscal year.
"Our strategy to expand the consumer electronics and accessory business showed continued progress in the fourth quarter as we saw a more than 110% increase in net sales of these products from the prior year. This product category accounted for more than $77 million in sales during the 2012 fiscal year, a 150% increase from the prior fiscal year. Our continued acquisition of market share in Canada provided a 37% increase in Canadian net sales during the fourth quarter. Additionally, our net sales in the e-commerce channel experienced a 50% growth during the fourth quarter. I look forward to seeing these high-growth areas contribute to a healthy and profitable fiscal year 2013."
Progress of the Past Two Quarters
The Company's previously announced restructuring initiative was completed during the third and fourth quarters of fiscal year 2012. This process involved the closure of two facilities, a thorough review and disposition of non-core assets, and a 27% reduction to headcount. Those changes allow the Company to leverage its infrastructure to focus on high-growth opportunities in the distribution of consumer electronics and accessories, the expansion of e-commerce fulfillment and increasing its market presence in Canada. In addition to the expense savings realized in fiscal year 2012, the restructuring is expected to provide additional operating expense savings of $5.5-$6.5 million in fiscal year 2013.
During the last six months of fiscal year 2012, the restructuring initiative and the Company's increased focus on high-growth opportunities contributed significantly to the Company's financial results. As compared to the third and fourth quarters of the prior year, adjusted pro forma operating expenses were reduced by 21%, a savings of $6.7 million; adjusted pro forma income from continuing operations improved by more than 200%; and adjusted pro forma EBITDA from continuing operations increased by 35%. The Company believes that the progress made during the past six months provides an opportunity to competitively price its products and services, while increasing its investments in sales and customer service to support its growth initiatives.
FY 2013 Outlook
In light of the progress made through the Company's now completed restructuring program and its decision to deemphasize the distribution of exclusive home video content (which contributed $22.6 million in net sales during fiscal year 2012), guidance for fiscal year 2013 is as follows:
- Net sales are anticipated to be between $460.0 million and $480.0 million; and
- Adjusted pro forma EBITDA is expected to be between $9.0 and $11.0 million. (See "Use of Non-GAAP Financial Information" below.)
Conference Call
The Company will host a conference call on Wednesday, May 23, 2012, at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). This conference call can be accessed by dialing (866) 700-0161, and utilizing the passcode "81015848", ten minutes prior to the scheduled start time. In addition, a live broadcast of this call will be available by going to the "Investors" section of the Company's website located at www.navarre.com. Those wishing to access this live broadcast of the call should go to the Company's website fifteen minutes prior to the start time to register and download any necessary software. A replay of the conference call will be available at the Company's website following its completion.
Use of Non-GAAP Information
The Company has provided non-GAAP adjusted pro forma information for the six months ended at March 31, 2011 and March 31, 2012. This information is provided as a convenience to the reader and to supplement their understanding of how management of the Company evaluates the financial results of the Company as it relates to the restructuring that took place during the 2012 fiscal year. This information is not typically provided by the Company and similar information may not be provided in future periods.
The Company provides non-GAAP adjusted pro forma information and references to "adjusted pro forma" information are references to non-GAAP adjusted pro forma measures. The Company provides adjusted pro forma information to assist investors in assessing its current and future operations in the way that its management evaluates those operations. Adjusted pro forma operating expenses, adjusted pro forma income from continuing operations before income tax, and adjusted pro forma EBITDA are supplemental measures of the Company's performance that are not required by, and are not presented in accordance with GAAP. Adjusted pro forma information is not a substitute for any performance measure derived in accordance with GAAP. The Company's management has evaluated and made operating decisions about its business operations primarily based upon these adjusted pro forma financial metrics. Therefore, the Company presents these adjusted pro forma measures along with GAAP measures. For each such adjusted pro forma financial measure, the adjustment provides the Company's management with information about the Company's underlying operating performance that enables a more meaningful comparison of its financial results in different reporting periods.
The adjusted pro forma measures presented by the Company provide comparable financial metrics to historical periods absent the impact of restructuring and other charges incurred during the Company's 2012 fiscal year. The Company also excludes the impact of equity-based compensation from its non-GAAP adjusted pro forma EBITDA in order to help it compare current period operating expenses against the operating expenses for prior periods and to eliminate the effects of this non-cash item, which, because it is based upon estimates on the grant dates, may bear little resemblance to the actual values realized upon the future exercise, expiration, termination or forfeiture of the equity-based compensation, and which, as it relates to stock options, is required for GAAP purposes to be estimated under valuation models, including the Black-Scholes model used by the Company.
The Company is using adjusted pro forma measures to help it make budgeting decisions, including decisions that affect operating expenses and operating margin. Further, adjusted pro forma financial information helps the Company's management track actual performance relative to financial targets.
The Company recognizes that the use of adjusted pro forma measures has limitations, including the need to exercise judgment in determining which types of charges should be excluded from the adjusted pro forma financial information. The Company provides adjusted pro forma financial information to the investment community, not as an alternative, but as an important supplement to GAAP financial information; to enable investors to evaluate the Company's core operating performance in the same way that its management does. Reconciliations between historical pro forma and adjusted pro forma results of operations are provided in the tables below.
About Navarre Corporation
Navarre(R) is a distributor and provider of e-commerce fulfillment solutions for traditional and internet-based sales channels. Our solutions support both direct-to-consumer and business-to-business sales. We also publish computer software through our Encore(R) subsidiary. Navarre was founded in 1983 and is headquartered in Minneapolis, Minnesota.
The Navarre Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6839
Safe Harbor
The statements in this press release that are not strictly historical are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbors provided therein. The forward-looking statements are subject to risks and uncertainties, and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to: difficult economic conditions that adversely affect the Company's customers and vendors; the Company's revenues being derived from a small group of customers; pending or prospective litigation may subject the Company to significant costs; the seasonal nature of the Company's business; the Company's ability to adapt to the changing demands of its customers; the potential for the Company to incur significant costs and to experience operational and logistical difficulties in connection with its information technology systems and infrastructure; the Company's dependence on significant vendors; the uncertain results of developing new software products; uncertain financial results in the publishing segment; the Company's ability to meet significant working capital requirements related to distributing products; and the Company's ability to compete effectively in the highly competitive distribution and publishing industries. In addition to these, a detailed statement of risks and uncertainties is contained in the Company's reports to the U.S. Securities and Exchange Commission (the "SEC"), including, in particular, the Company's Form 10-K filings, as well as its other SEC filings and public disclosures.
Investors and shareholders are urged to read this press release carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this press release will be met, and investors should understand the risks of investing solely due to such projections. The forward-looking statements included in this press release are made only as of the date of this report and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
Investors and shareholders may obtain free copies of the public filings through the website maintained by the SEC at http://www.sec.gov/ or at one of the SEC's other public reference rooms in Washington, D.C., New York, New York or Chicago, Illinois. Please contact the SEC at 1-800-SEC-0330 for further information with respect to the SEC's public reference rooms.
Stocks Slump, Papademos Says Greek Exit Risk is ‘Real’ - Wall Street Journal
By Paul Vigna
We said earlier, the market remains driven by Europe, and to prove that point, we give you, well, this afternoon. The Dow was up 50 points at 3 p.m., then these headlines hit Dow Jones Newswires:
*DJ Former Greek PM Papademos: Risk Of Greece Leaving Euro Is Real
*DJ Papademos: Preparations For Greece Euro Exit Are Being Considered
The news drove down the euro, which yoked the Dow with it. Incidentally, the Dow’s high for the day was set before noon, and the index started sliding a little before 3 p.m. So while the Papademos headlines clearly had an effect, certainly on the euro, the stock market here in New York was already running out of steam.
Euro’s lately at 1.2664, and the Dow’s down 47. The S&P 500′s down 5, and the Nasdaq Comp’s down 21. The yield on the U.S. 10-year Treasury’s down to 1.77%.
UPDATE: After all that, stocks finished essentially flat. The Dow dropped 1.67 points, or 0.01%, to 12502.81. The S&P 500 rose less than a point to 1316.63 and the Nasdaq Comp dropped 8.13 points, or 0.3%, to 2839.08.
Now, Papademos is the former prime minister, keep in mind, and he’s saying something that everybody pretty much expects anyhow. But it just shows you that Europe right now trumps everything.
Here’s some of the story from the Newswires’ Costas Paris and Jenny Paris:
Greece’s former prime minister Lucas Papademos Tuesday warned that Greeks have no choice but to stick with a painful austerity program dictated by its lenders or face an exit from the euro zone that would destitute the economy, send inflation soaring and generate new social strains.
In his first interview since leaving office last week, Papademos told Dow Jones Newswires that dropping the single currency would have “catastrophic” economic consequences for Greece and profound and far-reaching implications for the rest of the euro zone. This is why some European states and institutions are considering contingency plans for any eventuality, he said, declining to provide details.
“Although such a scenario is unlikely to materialize and it is not desirable either for Greece or for other countries, it can not be excluded that preparations are being made to contain the potential consequences of a Greek euro exit,” Papademos said.
Papademos, who also is a former European Central Bank vice president, continues to advise the new caretaker government that has run the country since he stepped down last Wednesday. His departure as prime minister followed inconclusive national elections May 6 that led to a parliament fragmented by a strong anti-austerity protest vote.
The new polls set for June 17, which amount to a Greek referendum on remaining in the euro zone, will be quickly followed by tight deadlines for a new government to deliver more spending cuts to keep qualifying for aid under the country’s second financial bailout by international lenders.
Papademos said he worries that many Greeks don’t fully appreciate the gravity of the situation.
By the way, Facebook is down 8.8% at $31.03. Friend that.
Financial services complaints swollen by PPI claims - The Guardian
A record 264,000 complaints were lodged about financial products and services over the past 12 months, with disputes about payment protection insurance (PPI) dominating the postbag, the UK's Financial Ombudsman Service (FOS) has revealed.
It said a 28% jump in the number of cases it had received was evidence that the past year had been "a struggle" for many consumers who had found themselves burdened by debt and "bewildered" by the complexity of financial services.
The FOS is the independent organisation that settles disputes between consumers and financial companies, and in its annual review covering the 2011/12 financial year it said it had received more than 1.2m enquiries and complaints – more than 5,000 each working day.
More than one in five of these initial enquiries went on to become formal disputes, resulting in a record 264,375 new cases. That compares with 206,121 in 2011 and 123,089 in 2007/08.
Of this year's new total, 157,716 (60%) involved the sale of PPI. This is the highest number of complaints ever received about a single financial product.
However, the ombudsman said there were almost 6,000 PPI complaints from people who hadn't bought the policy they were making a claim about.
Meanwhile, the number of insurance-related complaints (excluding PPI) jumped by 31%, driven primarily by problems with motor insurance (up 26%), buildings insurance (up 31%) and contents insurance (up 23%).
Banking and credit complaints fell by 1%, though credit card complaints increased by 10% and mortgage complaints leapt 35%. Disputes involving investments fell 4%, but those related to pensions were up by 28%.
Among the UK's "complaint hotspots" were Glasgow, Swansea and Bristol, the service said.
The good news for the public was that the ombudsman's involvement resulted in compensation for consumers in 64% of cases – up from 51% the previous year.
The service said there had been a reduction in the proportion of PPI complaints submitted on people's behalf by claims companies, from 76% in 2011 to 69%. This showed that "more consumers realise they don't need to pay someone to complain on their behalf", a spokesman said.
Natalie Ceeney, the chief ombudsman, said: "This year has been a struggle for many consumers who have found themselves burdened by debt, besieged by claims companies and bewildered by the complexity of financial services.
"This has made our work at the ombudsman service more challenging – but more crucial – than ever before."
iCAD Reports First Quarter Financial Results - Yahoo Finance
NASHUA, N.H.--(BUSINESS WIRE)--
iCAD, Inc. (Nasdaq: ICAD - News), an industry-leading provider of advanced image analysis, workflow solutions and radiation therapy for the early identification and treatment of cancer, today reported financial results for the first quarter ended March 31, 2012.
“Our results were mixed for the first quarter of 2012. We achieved record sales in the therapy segment of the business and continued to make considerable progress on expense management. However, weak demand in the cancer detection segment negatively affected overall revenue performance,” commented Ken Ferry, President and CEO of iCAD.
“We were particularly pleased to see stronger demand for the Axxent Electronic Brachytherapy system driven by the continued growing interest in breast Intraoperative Radiation Therapy (IORT). As a result, we achieved a record volume of new system sales and procedure based consumables in the first quarter of 2012. This momentum underscores our confidence that IORT will continue to gain acceptance as a new standard of care particularly for certain early stage breast cancer patients.
“The cancer detection segment experienced softer demand in the quarter particularly for digital mammography CAD. We continue to focus on the transition to a recurring revenue business model as the installed base of over 4,000 systems represents the largest addressable market opportunity for increased revenues.
“Our strategic plan for 2012 is to drive the adoption of IORT in early breast cancer treatment and to increase recurring revenues in our mammography cancer detection business. We have made good progress on these initiatives in early 2012. In addition, we have made significant progress in lowering our operating costs and strengthened our balance sheet. Moving forward we expect that increasing revenues combined with our disciplined expense management will put us on the road to profitability,” concluded Mr. Ferry.
First Quarter Financial Results
Revenue: Total revenue for the first quarter of 2012 decreased 14% to $6.3 million from $7.3 million for the first quarter of 2011. The decrease resulted primarily from a decline in Cancer Detection product revenues due to ongoing challenging market conditions in digital mammography. These declines were offset by significant increases in sales of the Company’s Xoft system, which contributed approximately $2.0 million in revenue, representing a 51% increase compared with the first quarter 2011.
Cancer Detection revenue includes film, digital mammography, MRI and CT CAD platforms, as well as service and supply revenue from these products. Therapy revenue includes Xoft Axxent Electronic Brachytherapy product sales, as well as associated service and supply revenue.
| Three months ended March 31, | |||||||||||
| 2012 | 2011 | % Change | |||||||||
| Products | $ | 4,079 | $ | 5,215 | (22 | )% | |||||
| Service and supply | 2,264 | 2,129 | % | ||||||||
| Total revenue | $ | 6,343 | $ | 7,344 | (14 | )% | |||||
| Three months ended March 31, | |||||||||||
| 2012 | 2011 | % Change | |||||||||
| Cancer Detection | $ | 4,339 | $ | 6,018 | (28 | )% | |||||
| Therapy | 2,004 | 1,326 | % | ||||||||
| Total revenue | $ | 6,343 | $ | 7,344 | (14 | )% | |||||
Gross Margin: Gross profit for the first quarter of 2012 was $4.4 million, or 69.8% of revenue, compared with $5.1 million, or 69.9% of revenue, for the first quarter of 2011.
Operating Expenses: During the first quarter of 2012, the Company incurred total operating expenses of $6.5 million, a 31% decrease from total operating expenses of $9.4 million for the first quarter of 2011. This substantial decrease is due to ongoing cost saving measures implemented in the second half of 2011.
Net Loss: For the first quarter of 2012, the Company posted a net loss of $2.3 million, or $0.04 per share, compared with a net loss of $4.3 million, or $0.08 per share, for the first quarter of 2011.
Non-GAAP Adjusted Net Loss: For the first quarter of 2012, the Company posted a non-GAAP adjusted net loss of $2.8 million, or $0.05 per share, compared with a non-GAAP adjusted net loss of $3.5 million, or $0.06 per share, in the first quarter of 2011.
Non-GAAP Adjusted EBITDA: Non-GAAP Adjusted EBITDA was a loss of $990,000 in the first quarter of 2012, compared with a loss of $2.3 million in the first quarter of 2011.
Cash and Cash Flow: The Company ended the first quarter of 2012 with cash and cash equivalents of $15.0 million. During the quarter net cash used by operations was $3.9 million. In January 2012 the Company entered into a five-year, $15 million debt facility agreement with Deerfield Management Company LP, a leading healthcare investment fund. Under the terms of the agreement, the Company issued a $15 million principal amount senior secured 5.75% notes, which included a revenue purchase agreement and 2,250,000 warrants.
Use of Non-GAAP Financial Measures
In its quarterly news releases, conference calls, slide presentations or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measures most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. When analyzing the Company's operating performance, investors should not consider these non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with GAAP. The Company's quarterly news releases containing such non-GAAP reconciliations can be found on the Investors section of the Company's web site at www.icadmed.com.
Conference Call
iCAD management will host an investment community conference call on Tuesday, May 8, 2012 beginning at 10:00 a.m. Eastern time to discuss these results and answer questions. Shareholders and other interested parties may participate in the conference call by dialing 866-713-8567 (domestic) or 617-597-5326 (international) and entering passcode 98133292. The call also will be broadcast live on the Internet at www.streetevents.com, www.fulldisclosure.com and www.icadmed.com.
A replay of the conference call will be accessible two hours after its completion through May 15, 2012 by dialing 888-286-8010 (domestic) or 617-801-6888 (international) and entering passcode 76256849. The call will also be archived for 90 days at www.streetevents.com, www.fulldisclosure.com and www.icadmed.com.
About iCAD, Inc.
iCAD is an industry-leading provider of Computer-Aided Detection (CAD) technologies, advanced image analysis, workflow solutions and radiation therapies for the early identification and treatment of common cancers. iCAD offers a comprehensive range of high-performance, upgradeable CAD solutions for mammography and advanced image analysis and workflow solutions for Magnetic Resonance Imaging, for breast and prostate cancers and Computed Tomography for colorectal cancer. iCAD’s Xoft system, offers radiation treatment for early-stage breast cancer that can be administered in the form of intraoperative radiation therapy or accelerated partial breast irradiation. The Xoft system is also cleared for the treatment of non-melanoma skin cancer and endometrial cancer. For more information, call (877) iCADnow, or visit www.icadmed.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this News Release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the Company’s ability to defend itself in litigation matters, the risks relating to the Company’s acquisition of Xoft including, the expected benefits of the acquisition may not be achieved in a timely manner, or at all; the Xoft business operations may not be successfully integrated with iCAD’s and iCAD may be unable to achieve the expected synergies, business and strategic objectives following the transaction, the risks of uncertainty of patent protection; the impact of supply and manufacturing constraints or difficulties; product market acceptance; possible technological obsolescence; increased competition; customer concentration; and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The words “believe”, “demonstrate”, “intend”, “expect”, “estimate”, “will”, “continue”, “anticipate”, “likely”, and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release. For additional disclosure regarding these and other risks faced by iCAD, please see the disclosure contained in our public filings with the Securities and Exchange Commission, available on the Investors section of our website at http://www.icadmed.com and on the SEC’s website at http://www.sec.gov.
-Tables to Follow -
| iCAD, INC. AND SUBSIDIARY | ||||||||
| Consolidated Statements of Operations | ||||||||
| (Unaudited) | ||||||||
| (In thousands except for per share data) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| Revenue: | ||||||||
| Products | $ | 4,079 | $ | 5,215 | ||||
| Service and supplies | 2,264 | 2,129 | ||||||
| Total revenue | 6,343 | 7,344 | ||||||
| Cost of revenue: | ||||||||
| Products | 1,107 | 1,207 | ||||||
| Service and supplies | 577 | 772 | ||||||
| Amortization of acquired intangibles | 232 | 233 | ||||||
| Total cost of revenue | 1,916 | 2,212 | ||||||
| Gross profit | 4,427 | 5,132 | ||||||
| Operating expenses: | ||||||||
| Engineering and product development | 2,212 | 2,776 | ||||||
| Marketing and sales | 2,646 | 3,727 | ||||||
| General and administrative | 1,618 | 2,804 | ||||||
| (Gain) loss on indemnification asset | - | 43 | ||||||
| Total operating expenses | 6,476 | 9,350 | ||||||
| Loss from operations | (2,049 | ) | (4,218 | ) | ||||
| Gain on warrant | 599 | - | ||||||
| Interest expense, net | (814 | ) | (94 | ) | ||||
| Net loss | $ | (2,264 | ) | $ | (4,312 | ) | ||
| Net loss per share: | ||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.08 | ) | ||
| Weighted average number of shares used in | ||||||||
| computing loss per share: | ||||||||
| Basic and diluted | 53,880 | 54,366 | ||||||
| iCAD, INC. AND SUBSIDIARY | |||||||||
| Consolidated Balance Sheets | |||||||||
| (Unaudited) | |||||||||
| (In thousands except for share data) | |||||||||
| March 31, | December 31, | ||||||||
| 2012 | 2011 | ||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 14,965 | $ | 4,576 | |||||
| Trade accounts receivable, net of allowance for doubtful | |||||||||
| 4,440 | 4,003 | ||||||||
| Inventory, net | 1,787 | 2,040 | |||||||
| Prepaid expenses and other current assets | 964 | 490 | |||||||
| Total current assets | 22,156 | 11,109 | |||||||
| Property and equipment, net of accumulated depreciation | |||||||||
| and amortization of $3,383 in 2012 and $3,184 in 2011 | 1,621 | 1,884 | |||||||
| Other assets | 861 | 595 | |||||||
| Intangible assets, net of accumulated amortization | |||||||||
| 16,544 | 17,064 | ||||||||
| Goodwill | 21,109 | 21,109 | |||||||
| Total assets | $ | 62,291 | $ | 51,761 | |||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 1,180 | $ | 1,125 | |||||
| Accrued and other expenses | 3,497 | 5,594 | |||||||
| Interest payable | 496 | - | |||||||
| Warrant payable | 400 | - | |||||||
| Deferred revenue | 5,590 | 5,765 | |||||||
| Total current liabilities | 11,163 | 12,484 | |||||||
| Deferred revenue, long-term portion | 1,363 | 1,446 | |||||||
| Other long-term liabilities | 1,579 | 1,776 | |||||||
| Notes payable | 14,188 | - | |||||||
| Total liabilities | 28,293 | 15,706 | |||||||
| Stockholders' equity: | |||||||||
| Preferred stock, $ .01 par value: authorized 1,000,000 shares; | |||||||||
| none issued. | - | - | |||||||
| Common stock, $ .01 par value: authorized 85,000,000 | |||||||||
| shares; issued 54,873,186 in 2012 and 54,754,510 in 2011; | |||||||||
| outstanding 53,944,031 in 2012 and 53,825,355 in 2011 | 549 | 547 | |||||||
| Additional paid-in capital | 164,200 | 163,995 | |||||||
| Accumulated deficit | (129,336 | ) | (127,072 | ) | |||||
| Treasury stock at cost 929,155 in 2012 and 2011 | (1,415 | ) | (1,415 | ) | |||||
| Total stockholders' equity | 33,998 | 36,055 | |||||||
| Total liabilities and stockholders' equity | $ | 62,291 | $ | 51,761 | |||||
| See accompanying notes to consolidated financial statements. | |||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP MEASURES
(Unaudited, in thousands, except per share amounts)
The following is a reconciliation of the non-GAAP financial measures used by the Company to describe the Company's financial results determined in accordance with United States generally accepted accounting principles (GAAP). An explanation of these measures is also included below under the heading "Explanation of Non-GAAP Financial Measures".
While management believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of the Company's business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and management may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations as determined in accordance with GAAP.
| Non-GAAP Adjusted EBITDA Set forth below is a reconciliation of the Company's "Non-GAAP Adjusted EBITDA" (Unaudited, in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2012 | 2011 | |||||||
| GAAP Net Loss | $ | (2,264 | ) | $ | (4,312 | ) | ||
| Interest Expense, net | 814 | 94 | ||||||
| Stock Compensation | 215 | 268 | ||||||
| Depreciation | 241 | 295 | ||||||
| Amortization | 523 | 524 | ||||||
| Severance | 80 | - | ||||||
| Gain on warrant | (599 | ) | - | |||||
| Recall and patent lawsuits | - | 564 | ||||||
| Acquisition related | - | 220 | ||||||
| (Gain) loss on indemnification asset | - | 43 | ||||||
| Non GAAP Adjusted EBITDA | $ | (990 | ) | $ | (2,304 | ) | ||
| Non-GAAP Adjusted Net Loss Set forth below is a reconciliation of the Company's "Non-GAAP Adjusted Net Loss" (Unaudited, in thousands, except loss per share) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2102 | 2011 | |||||||
| GAAP Net Loss | $ | (2,264 | ) | $ | (4,312 | ) | ||
| Adjustments to net loss: | ||||||||
| Severance | 80 | - | ||||||
| Gain on warrant | (599 | ) | - | |||||
| Recall and patent lawsuits | - | 564 | ||||||
| Acquisition related | - | 220 | ||||||
| (Gain) loss on indemnification asset | - | 43 | ||||||
| Non GAAP Adjusted Net Loss | $ | (2,783 | ) | $ | (3,485 | ) | ||
| Net loss per share | ||||||||
| GAAP Net loss per share | $ | (0.04 | ) | $ | (0.08 | ) | ||
| Adjustments to net loss (as detailed above) | (0.01 | ) | 0.02 | |||||
| Non GAAP Adjusted Net Loss per share | $ | (0.05 | ) | $ | (0.06 | ) | ||
Explanation of Non-GAAP Financial Measures
The Company reports its financial results in accordance with United States generally accepted accounting principles, or GAAP. However, management believes that in order to properly understand the Company's short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and/or impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of the Company and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in the Company's ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of the Company's ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management's ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing the Company's financial and operational performance and comparing this performance to its peers and competitors.
Management defines "Non-GAAP Adjusted EBITDA" as the sum of GAAP net loss before provision for income taxes, acquisition-related expenses, total other (income) expense, stock-based compensation expense, depreciation and amortization, severance, gain on sale, amortization of acquired intangibles, acquisition related, patent litigation and recall costs, contingent consideration, indemnification asset and goodwill impairment charges. Management considers this non-GAAP financial measure to be an important indicator of the Company's operational strength and performance of its business and a good measure of its historical operating trends, in particular the extent to which ongoing operations impact the Company's overall financial performance.
Management defines "Non-GAAP Adjusted Net Loss" as the sum of GAAP net loss before provision for the gain on sale of asset, severance, transaction, patent litigation and recall costs, contingent consideration, indemnification asset and goodwill impairment charges. Management considers this non-GAAP financial measure to be an important indicator of the Company's operational strength and performance of its business and a good measure of its historical operating trends, in particular the extent to which ongoing operations impact the Company's overall financial performance.
Management excludes each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item:
- Stock-based compensation expense: excluded as these are non-cash expenses that management does not consider part of ongoing operating results when assessing the performance of the Company's business, and also because the total amount of expense is partially outside of the Company's control as it is based on factors such as stock price volatility and interest rates, which may be unrelated to our performance during the period in which the expense is incurred.
- Amortization of acquired intangibles: acquisition-related expenses are reported at the time acquisition costs are incurred, and purchased intangibles are amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition. Accordingly, these items are not considered by management in making operating decisions, and management believes that such expenses do not have a direct correlation to future business operations. Thus, including such charges does not accurately reflect the performance of the Company's ongoing operations for the period in which such charges are incurred.
- Interest expense: In January 2012, the Company entered into a five-year, $15 million debt facility agreement. The Company excludes interest expense from its non GAAP Adjusted EBITDA calculation.
- Severance: relates to costs incurred due to the termination of certain employees. The Company provides compensation to certain employees as an accommodation upon termination of employment without cause. Management believes that excluding severance costs from operating results provides investors with a better means for measuring current Company performance.
- Recall and patent lawsuits: These expenses consist primarily of investigation, audit, legal and other professional fees related to the recall and patent litigation, as well as recoveries received from third parties. The Company excludes these costs and recoveries from its non-GAAP measures primarily because the Company believes that these costs and recoveries have no direct correlation to the core operation of the Company's.
- Indemnification asset gain (loss): The Company recorded an indemnification asset representing Xoft, Inc.’s obligation to indemnify iCAD for the outcome of potential liabilities as a result of iCAD’s acquisition of Xoft, Inc. The Company does not consider the indemnification asset gain(loss) to be directly related to the continuing operations of the business
- Gain on Warrant: The Company issued warrants in connection with the financing and the value changes according to fair value. It is excluded as these are non-cash expenses that management does not consider part of ongoing operating results when assessing the performance of the Company's business, also because the total amount of gain or loss is partially outside of the Company's control as it is based on factors such as stock price volatility and interest rates, which may be unrelated to our performance during the period in which the gain or loss is incurred.
On occasion in the future, there may be other items, such as significant asset impairments, restructuring charges or significant gains or losses from contingencies that the Company may exclude if it believes that doing so is consistent with the goal of providing useful information to investors and management.
US stocks turn higher on housing report - NorthJersey.com
NEW YORK - Stocks are closing mixed after news out of Greece yanked indexes lower shortly before the closing bell.
The Dow Jones industrial average dropped 2 points Tuesday to close at 12,503.
Markets were higher for most of the day after the National Association of Realtors said Americans bought more houses in April.
But a half-hour before the close, news that Greece's former prime minister said the country was considering dropping the euro sent markets lower.
The Nasdaq dropped 8 points to 2,839. The Standard & Poor's 500 inched up less than a point to 1,317. It was up 12 points earlier.
Rising stocks outpaced falling ones by a small margin on the New York Stock Exchange. Trading volume was higher than average at 4.1 billion.
Stocks Turn Lower Amid Renewed Greece Fears - CNBC
Stocks erased most of their gains to finish flat Tuesday following reports that former Greek Prime Minister Lucas Papademos said preparations for Greece's exit from the euro zone are being considered.
Still, all three major averages managed to end off their worst levels after an initial sharp drop following the report.
Papademos also cautioned that dropping the single currency would have "catastrophic" economic consequences for the debt-ridden nation and the rest of the euro zone.
The Dow Jones Industrial Average erased 1.67 points, or 0.01 percent, to close at 12,502.81. Alcoa [AA Loading... () 
] led the Dow laggards, while JPMorgan [JPM Loading... () ] and BofA [BAC Loading... () ] closed higher.
The S&P 500 eked out a gain of 0.64 points, or 0.05 percent, to end at 1,316.63. The Nasdaq slipped 8.13 points, or 0.29 percent, to finish at 2,839.08.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, ended above 22.
The euro extended losses against the greenback following the news to trade well below $1.27.
“We’re swamped by all these headlines,” said Brian Battle, vice president of trading at Performance trust Capital Partners of the day’s choppiness. “The technical argument is that we’re due for a rally, but fundamentally our stocks are still overvalued…it’s hard to imagine that stocks can really go up in this environment at all.”
Facebook [FB Loading... () ]declined again after tumbling almost 11 percent in the previous session amid doubts over the company's valuation after Reuters reported that an analyst at Morgan Stanley cut his revenue forecasts on the social networking giant days before the offering. Morgan Stanley was the lead underwriter for Facebook's IPO. (Read More: Facebook's Flop—Why Stock's Early Slump May Not Matter)
Best Buy [BBY Loading... () ] finished higher after the consumer-electronics retailer reported better-than-expected quarterly sales and earnings, while maintaining its outlook for the year.
On the economic front, existing home sales rose 3.4 percent to an annual rate of 4.62 million units in April to their highest in almost two years, according to the National Association of Realtors.
“We’re seeing more evidence of a bottom in the housing market,” said Dwight Johnston, chief economist at the California and Nevada Credit Union Leagues, but noted that the NAR’s report is not the most reliable indicator. “It’s not the kind of market that’s going to see a huge swing to the upside, but there will be stability in the real estate market.”
Stocks were mixed at the open after Fitch ratings agency downgraded Japan’s credit rating from triple A to double A+ with a negative outlook, on fears that the country’s public debt will reach 239 percent of its gross domestic product by the end of the year. Japanese Finance Minister Jun Azumi said the government would make efforts to implement social welfare and tax reforms.
European shares ended higher amid hopes that euro zone leaders will reach some form of agreement on a policy response to the debt crisis when they meet in Brussels on Wednesday.
Meanwhile, the Organization for Economic Cooperation and Development (OECD) projected that global growth would ease to 3.4 percent this year from 3.6 percent in 2011. The group also showed support for Eurobonds—a policy that new French President Francis Hollande raised over the weekend.
Google [GOOG Loading... () ] completed its acquisition of Motorola Mobility in a deal worth $12.5 billion and chose a new CEO for the cellphone maker.
Express [EXPR Loading... () ] plunged almost 30 percent after the apparel retailer posted lower-than-expected results and slashed its full-year earnings forecast. Urban Outfitters [URBN Loading... () ] rallied after the clothing retailer topped earnings expectations.
Dell [DELL Loading... () ] and Take Two [TTWO Loading... () ] are scheduled to report earnings after the close.
Patriot Coal [PCX Loading... () ] tanked amid rumors the struggling coal producer has hired bankruptcy advisors. The company also reiterated that it has a commitment for a revolving credit line of $625 million. Rivals Arch Coal [ACI Loading... () ] and Alpha Natural [ANR Loading... () ] were also lower.
Bayer and Onyx Pharmaceuticals [ONXX Loading... () ] failed to show in a late-stage clinical study that their blockbuster drug Nexavar can prolong the lives of patients with lung tumors, the largest target group in the cancer market.
Treasury prices held their losses after the government auctioned $35 billion in 2-year notes at a high yield of 0.300 percent and bid-to-cover of 3.95.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
WEDNESDAY: Weekly mortgage apps, FHFA home price index, oil inventories, 5-yr note auction, Minneapolis Fed's Kocherlakota speaks, CME shareholders mtg, Kraft shareholders mtg; Earnings from Hewlett-Packard, Big Lots, Toll Brothers, NetApp, Pandora
THURSDAY: Durable goods orders, jobless claims, 7-yr note auction, BlackRock shareholders mtg, Goldman Sachs shareholders mtg, McDonald's shareholders mtg; Earnings from Costco, Tiffany
FRIDAY: Consumer sentiment, USDA food prices outlook
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