First Quarter 2009 Highlights
Cash and cash equivalents decreased by $0.6 million during the quarter to $0.5 million at March 31, 2009 from $1.1 million at December 31, 2008;
Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 51.5% to $1,898,435 from $3,913,078 during the quarter compared to the same quarter last year;
Purchase orders received during the first quarter and opening backlog totaled $3.6 million ($2.6 million shipped and recognized, $1.0 million booked to closing backlog);
Reduced receivables by $2.0 million compared to December 31, 2008 on the collection of $4.5 million during the quarter; Days Sales Outstanding (DSO) for the quarter was 137 days, the lowest in the last twelve quarters;
Reduced inventory by $0.4 million compared to December 31, 2008;
Reduced payables and accruals by $1.5 million compared to December 31 2008;
Reduced total expenses by 52.0% to $2.2 million from $4.6 million during the quarter compared to the same quarter last year;
Gross revenues were lower by 58.8% compared to the same quarter last year; which was largely due to the decline in revenues in United States (“US”) as a result of the slowing economic conditions; and
Gross margins were 25.9% for the quarter which were also impacted due to lower margin sales during the quarter, the global pricing pressures on digital radiography products and the continued utilization of inventory that was purchased during previous quarters.
Commenting on the first quarter 2009 results, Tom Boon, IDC’s president & chief executive officer said, “I am pleased with our first quarter successes in the Asia Pacific and Latin America regions as it is reflective of our strategic positioning to grow our OEM business while aligning with selected distributors for the systems business. We have clearly demonstrated our ability to reduce and manage expenses, which are in line with expectations for the first quarter. The continued overall improvement in the Balance Sheet and effective management of working capital provides good evidence that our build to purchase order business model, rigorous order management criteria and the empowered IDC employees can effectively manage IDC’s global business.”
Boon continued, “The careful strategic realignment of the business that includes reducing cash burn and managing working capital, the continued improvement in the performance of our proprietary CCD digital detector technology, growth of the OEM detector head business and refocusing on sales of the systems business with capable regional distributors is providing the desired results. With a promising sales funnel, the focus for the remainder of 2009 will be to grow sales in each of the geographic regions that will enable IDC to increase shareholder value and to meet our corporate objectives for Profitable Growth and Industry Leadership.”