iCAD records revenue growth of 73%
1 August 2008
Computer-aided cancer detection systems supplier iCAD, Inc. (NASDAQ:ICAD)
has announced announced record financial results for the three and six
months ended June 30, 2008.
Total revenue for the second quarter of 2008 was $10.5 million, up
73% over last year, with net income of US$2.4m.
In a further sign on growth, the company recently completed
acquisition of CAD Sciences, a
privately-held medical technology company based in White Plains, NY, USA
“We are especially proud of our financial performance during the
second quarter 2008 as it was a record quarter by all financial
measurements. We achieved records in revenue, gross margin, net income
and cash flow, among other financial metrics relevant for a growing,
healthy company,” commented Ken Ferry, iCAD’s President and CEO.
“In addition to the continued strong demand for our digital products,
the quarter was positively impacted by the FDA approval of our
SecondLook Digital product for use with Fujifilm’s Computed Radiography
for Mammography systems.
"SecondLook Digital for FCRm represents a considerable market
opportunity as it is the first CAD product approved and available in the
US for use with computed radiography, a successful and growing product
category for Fujifilm.
"The second quarter of 2008 also benefited from the launch of a new
version of our comparative reading solution, TotalLook MammoAdvantage.
We expect increasing demand for this advanced comparative reading
solution as the transition from film to digital mammography continues,
and the need to digitize archived film images grows as well.”
“Growth opportunities for the digital CAD market continue to be
strong as there remains considerable room for sustained expansion in the
coming years. According to the FDA website, as of the close of the
second quarter of 2008, 38% of the installed mammography base in the US
had transitioned to digital, leaving 62% of the just over 13,500 systems
available for conversion to digital in the coming years. With CAD
selling at a nearly one to one attachment rate to digital systems
placed, we are confident that there is substantial opportunity for
growth over the next two to three years, as these centers continue to
migrate to digital technology.”
Commenting on the recently completed acquisition of CAD Sciences, Mr.
Ferry said, “Our acquisition of CAD Sciences broadens our leadership
position beyond mammography CAD and provides a comprehensive portfolio
of advanced image analysis and workflow solutions for the early
detection of the most prevalent cancers.
"Magnetic Resonance Imaging (MRI) and Computed Tomography (CT) are
demonstrating significant advances in the imaging sector and our
internal development program for colon cancer detection with CT, along
with this acquisition, extends our reach to the imaging modalities of CT
and MRI, in addition to our expertise in film-based, digital radiography
and computed radiography.”
“Our integration of this key CAD technology for breast and prostate
MRI should provide significant synergy regarding customer call points
for our sales team, and we expect physician adoption to be accelerated
by iCAD’s strong market position in mammography CAD,” he added.