iCAD reports record shipments, 3Q losses

iCAD, the Nashua-based designer of computer-aided detection systems, reported today that revenues for the third quarter of 2005 slipped to $3.4 million from $6 million a year ago, but the company also recorded the highest number of product shipments in its history.

Net loss was just over $2.5 million, or 7 cents per share, compared to $3.6 million, or 1 cent per share, in the third quarter of 2004. Legal expenses of approximately $586,000, associated with the company’s ongoing patent arbitration, contributed to the loss in the most recent quarter.

Scott Parr, iCAD’s president and CEO, said shipments and orders were at record levels for most of the quarter, but a study released in September by the New England Journal of Medicine reporting the superiority of digital mammography systems in detecting breast cancer may have delayed orders.

“This delay was particularly problematic because it occurred in the final weeks of the quarter, when historically a substantial percentage of quarterly orders are received and shipped,” said Parr.

He also said that total product shipments for October 2005 are the highest in the company’s history.

“We consider this is a positive indicator that results in September reflected a pause, rather than a change, in the market for our film-based CAD solutions,” Parr commented.

In other news, iCAD signed this week a three-year purchasing agreement with Amerinet Inc., a buying group representing over 3,300 hospitals and ambulatory and surgical centers, which is expected to greatly increase the company’s national presence. — CK