iCAD’s losses widen

Increased quarterly sales of digital solutions were not enough to bridge the widening gap in losses for Nashua-based computerized mammography solutions developer iCAD as its analog business fell off significantly.

Net loss for the second quarter of 2006, which ended June 30, increased nearly 58 percent to $2.56 million, or a loss of 7 cents per share, from a loss of $1.08 million, or a loss of 3 cents per share, in the second quarter of 2005.

Overall sales were down 7 percent to $3.9 million versus $4.2 million in the same quarter a year ago.

The company also incurred significant expenses of $1.2 million in cash and $286,000 in stock associated with compensation and severance packages as it restructured its management team.

Losses in the first six months of 2006 rose to $4.16 million, or a loss of 11 cents per share, increasing from a net loss of $441,733, or 1 cent per share, in the first six months of 2005.

Sales of iCAD’s digital solutions were the company’s bright spot for the quarter, rising 43 percent on the same quarter a year ago. Its TotalLook system, which converts traditional film mammography images into digital images, also rose impressively by 100 percent since its launch late last year and 77 percent on the first quarter of 2006.

Ken Ferry, iCAD’s president and CEO, said the quarterly performance “reflects significant transition for iCAD,” but he said “we believe we are in a strong position to capitalize on the rapid transition our customers are making from analog to digital mammography systems and believe our new organization is making substantial progress in positioning the company for future success.” — CINDY KIBBE