ICAD finishes 2011 with $37m loss

ICAD lost another $2.2 million, or 4 cents per share in its final quarter of 2011, and while that’s nearly a $700,000 improvement on the fourth quarter of the previous year, the Nashua medical imagining company will still finish 2011 with a whopping net loss of $37.6 million (69 cents per share), six times the loss it suffered in 2010.A good chunk of that annual loss was a $26.8 million third quarter goodwill impairment charge acknowledging the decline in the company’s stock price, which plummeted from $1.35 a share in April to a low of 42 cents in October. But even without counting that loss of goodwill, as well as ignoring various other factors required by General Accepted Accounting Principals (GAAP), the company posed a non-GAAP adjusted net loss of $2.3 million for the quarter (compared to a $118,000 non-GAAP loss in the previous quarter) and $12.4 million for the year, quadruple the loss in 2010. The company did increase its revenue slightly: $6.6 million for the quarter (up 4 percent) and $28.7 million for the year, a 17 percent increase. But its operating expenses also went up. It spent $10.8 million in engineering and product development and $13.7 million in marketing and sales, which was partly because of the acquisition of Xoft company. CEO Ken Ferry blamed “softer than expected” sales in software and therapy lines, but said he was encouraged by a “significant” increase in balloon applicator and X-ray sources sales.Ferry said that the company’s mammography CAD business was “lower than anticipated,” thanks to weaker sales in both Europe and the United States, but said the company was hopeful about a new-generation digital mammography system. Ferry said ICAD was at “the beginning of the growth curve,” though he declined to give any specific guidance for 2012. The company finished 2011 with about $4.6 million in cash, compared to $16.3 million at the end of 2010, and with $11.1 million in assets, less than half of the $25 million the company had at the end of 2010. Stockholder’s equity was also cut in half to $36 million. But following the quarter, the company was able to get a five-year, $15 million loan agreement with Deerfield Management Company, a 5.75 percent interest in addition to a royalty agreement. — BOB SANDERS/NEW HAMPSHIRE BUSINESS REVIEW

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