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Calgary, Alberta (FSCwire) - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSXV: IDL) reports its financial results for the three and nine months ended September 30, 2016.

 

2016 Third Quarter Highlights

 

The third quarter of 2016 saw IDC record its third consecutive revenue growth quarter and its highest quarterly revenue since Q4 of 2013. The following demonstrates the continued successful execution of the Company’s redefined strategic direction and sales strategies:

 

• Gross revenues for the three and nine months ended September 30, 2016 increased by 49 and 61 percent respectively compared to the same periods in 2015.  Gross revenues for the three and nine months ended September 30, 2016 were $1,305,822 and $3,191,256, compared to $874,416 and $1,977,219 respectively in the same periods of 2015.  In the third quarter, 88 percent (2015 – 54 percent) of sales were in China and 12 per cent (2015 - 46 percent) in the Americas. This reflects an increase in the trading business in China as a result of a new sales and marketing strategy launched there earlier this year.

 

• Gross margins for the three and nine months ended September 30, 2016 were $549,202 (42 per cent) and $1,043,072 (33 percent) compared to $387,798 (44 percent) and $965,724 (49 percent), respectively, for the same periods in 2015.  The higher percentage gross margin for 2015 year to date was primarily due to the Company selling previously written down inventory in North America.

 

• Overhead costs (sales, general and administrative, production and manufacturing, and research and development expenses) were $1,785,944 and $4,536,743 for the three and nine months ended September 30, 2016, up from $707,604 and $1,846,977, respectively, during same periods in 2015.  This increase is due to new product development, establishing of operations and research facilities in China and Canada.

 

• Net loss for the three and nine months ended September 30, 2016 was $1,242,909 and $4,287,490, compared to a net loss of $365,499 and $1,274,817 in the same periods of 2015.  The main contributors of this higher loss in the third quarter of 2016 compared to 2015 were increased overhead due to setting up and reorganizing the business so it is able to sustain future growth, and interest costs on the convertible debentures, offset somewhat by an increased gross margin on sales.

 

• Trade and other receivables increased from $169,637 at December 31, 2015 to $1,770,787 at September 30, 2016 due to an increase in sales during third quarter.

 

• The inventory value of $3,559,126 at September 30, 2016 was primarily due to completing numerous DR units based on confirmed sales orders that are currently anticipated to be installed between December 2016 and March 2017.

 

• Trade and other payables increased from $2,317,683 at December 31, 2015 to $3,291,614 at September 30, 2016.  This increase is due to higher accruals and obligations for inventory, expenses and capital additions.

 

• The Company received $5,891,234 in September 2016 in advance of closing of its latest convertible debenture financing in October 2016 and has recorded this amount as deferred financing in the Consolidated Statement of Financial Position as at September 30, 2016.

 

“I am very pleased with the success we are achieving; I believe 2016 will go down as IDC’s turnaround year.” said Mr. Yucheng Zhou, IDC’s CEO and Chairman. “The consecutive quarterly sales growth and this quarter being the highest quarterly revenue in almost three years clearly demonstrates a renewed interest in IDC and our product offering, especially in China. Combine this with the recently closed financing and the excellent responses received at the recent CMEF show and RSNA, I am very excited in IDC’s future growth and potential.”

 

A conference call to discuss the quarter’s results is not planned at this time. The Company’s interim condensed consolidated financial statements for the three and nine months ended September 30, 2016 and the related management discussion and analysis are available on Sedar.com.

 

About Imaging Dynamics Company (IDC):

 

IDC is a global medical imaging technology provider and innovative force in the high growth field of digital radiography (DR) technology.

 

The Company has thousands of installations in 50 countries of its proprietary, award winning direct capture DR technology, which replaces conventional film-based diagnostic imaging and provides a cost-effective solution for medical facilities of all sizes to provide high quality diagnostic X-ray images and improve the level of healthcare for their patients.

 

Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan and Deloitte Technology; for its dedication to innovation, global market growth, and customer focused value proposition.

 

The Company has its corporate office in Calgary, Canada, a sales and marketing office in Beijing, China, and also operations, research and development centres in Calgary, Canada and Shanghai, China.

 

Visit the IDC web site:  www.imagingdynamics.com

 

For more information, please contact:

Mr. Eugene Woychyshyn

Chief Financial Officer
1.403.251.9939 Office
1.866.975.6737 Toll Free

ewoychyshyn@imagingdynamics.com

 

Statements in this release which describe IDC's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of IDC to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. IDC may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions. Known and unknown risks and uncertainties include: IDC's ability to manufacture its products with a sufficient level of quality and in volumes which satisfy market demand; the ability of IDC to establish direct and indirect sales channels; the ability of IDC to establish industry partnerships; IDC's ability to attract and retain key personnel; the strength and breadth of IDC's patents; and other factors relating to general economic conditions, specific industry conditions and IDC's particular situation.

 

Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

 

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES

To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/IDC11292016.pdf

Source: Imaging Dynamics Company Ltd. (TSX Venture:IDL)

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