Digirad sales and net loss grow

Growth in revenue at nuclear medicine firm Digirad wasn't enough to offset restructuring charges and lower margins as the Poway, CA, company's net loss grew in its fourth quarter and year-end 2008 financial results.

For the fourth quarter (end-December 31), Digirad company had revenue of $22.2 million, up 15% from $18.8 million in the fourth quarter of 2007. The firm reported a net loss of $3.4 million for the most recent quarter, compared with a $1.1 million loss in the same quarter of 2007.

The company said that the results were due to restructuring charges and goodwill impairment that it does not expect to recur in coming periods.

For the year, Digirad's revenue increased 8% to $80.4 million, compared with $73.9 million in 2007. Digirad posted a net loss for the year of $6.9 million, compared with a net loss of $1.4 million in 2007, which is attributed to lower gross margins in the first three quarters of 2008 and lower interest income compared to 2007.

Revenue from Digirad's mobile imaging services division (DIS) for the year rose 7% to $56.2 million, compared with $52.4 million in 2007.

Digirad also announced that its board of directors has authorized a stock buyback program to repurchase up to an aggregate of $2 million of its issued and outstanding common shares. The company had approximately 19 million shares outstanding as of December 31, 2008. At current valuations, this repurchase plan would authorize the buyback of approximately 2.1 million shares, or approximately 11% of the company's outstanding shares.

Related Reading

Digirad sells off three service hubs, February 5, 2009

Digirad replaces chief executive, October 23, 2008

Digirad gets FDA nod for nSpeed, September 23, 2008

Trial begins for Digirad's Cardius X-ACT, September 5, 2008

Novel cardiac SPECT system improves attenuation correction, August 15, 2008

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