NASHUA, N.H., April 27 /PRNewswire-FirstCall/ -- iCAD(R), Inc.
(NASDAQ: ICAD), an industry-leading provider of Computer-Aided
Detection (CAD) solutions for the early identification of cancer,
today reported its financial results for the first quarter ended
March 31, 2006. iCAD sales for the quarter ended March 31, 2006
were $4,373,650 compared with $6,007,607 in the first quarter of
2005. Gross margin remained constant at 79% of sales in the first
quarter 2006 and prior-year first quarter. Net loss for the first
quarter of 2006 totaled ($1,605,894) or ($0.04) per share, compared
with net income of $641,929 or $0.02 per share, in the prior-year
quarter. "Sales in iCAD's first quarter of 2006," indicated W.
Scott Parr, President and CEO, "were significantly and adversely
affected by discussions underway at the time regarding a potential
merger with our principal competitor. The possibility of such a
merger required that the Company defer hiring to fill key sales and
marketing management positions, and caused a significant
distraction to our field sales force". Parr continued, "Since the
February decision by iCAD's Board to terminate such merger
discussions, we have made substantial progress in correcting these
problems." "First quarter expenses," Parr explained, "were
increased by continuing costs of the Company's patent infringement
arbitration with its principal competitor, as well as professional
and other expenses associated with merger discussions. With the
conclusion of our successful defense against infringement claims,
and a renewed commitment to succeeding independently in our
markets, these unplanned expenses are behind us." On April 24,
2006, iCAD announced that Kenneth W. Ferry would join the Company
on May 15, 2006, as President and CEO. W. Scott Parr will leave the
President and CEO positions at that time, and become iCAD's
non-executive Vice Chairman of the Board of Directors. Conference
Call As previously announced, iCAD will host a conference call
today, April 27, 2006, at 11:00 am EDT. Shareholders and other
interested parties can participate in the conference call by
dialing +1 866 713 8310 in the US and Canada or +1 617 597 5308 for
international/local participants, and entering passcode 56272639 a
few minutes before 11:00 a.m. on April 27, 2006. The call will also
be broadcast live on the Internet at http://www.streetevents.com/,
http://www.fulldisclosure.com/ and http://www.icadmed.com/ . A
replay of the conference call will be available two hours after its
completion on April 27, 2006 until May 4, 2006 by dialing +1 888
286 8010 in the US and Canada or +1 617 801 6888 for
international/local participants, and entering passcode 70215480.
The call will also be archived for 90 days at
http://www.streetevents.com/, http://www.fulldisclosure.com/ and
http://www.icadmed.com/. About iCAD, Inc. iCAD, Inc. is an
industry-leading provider of Computer-Aided Detection (CAD)
solutions that enable healthcare professionals to identify cancer
and other life-threatening conditions earlier by making medical
services more effective, more accessible and more affordable for
patients worldwide. Recipient of Frost & Sullivan's Growth
Strategy Leadership award and repeatedly recognized as offering
"The Winning Combination" of Price and Performance by MD Buyline,
iCAD offers a comprehensive range of high- performance, upgradeable
CAD systems for the high, mid and low volume mammography markets.
As the most frequently selected CAD solution for film- based and
digital breast screening, iCAD is entrusted with the task of early
cancer detection by almost fifteen hundred women's healthcare
centers worldwide. For more information, call +1 877 iCADnow or
visit http://www.icadmed.com/. "Safe Harbor" Statement under the
Private Securities Litigation Reform Act of 1995: Certain
statements contained in this News Release constitute "forward-
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements
involve a number of known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, but are not
limited to, the risks of uncertainty of patent protection, the
impact of supply and manufacturing constraints or difficulties,
product market acceptance, possible technological obsolescence,
increased competition, customer concentration and other risks
detailed in the Company's filings with the Securities and Exchange
Commission. The words "believe", "demonstrate", "intend", "expect",
"estimate", "anticipate", "likely", and similar expressions
identify forward- looking statements. Readers are cautioned not to
place undue reliance on those forward-looking statements, which
speak only as of the date the statement was made. The Company is
under no obligation to provide any updates to any information
contained in this release. iCAD and Second Look are registered
trademarks of iCAD, Inc. iCAD, INC. Consolidated Statements of
Operations Three Months Three Months March 31, 2006 March 31, 2005
(unaudited) (unaudited) Sales $4,373,650 $6,007,607 Cost of sales
918,879 1,273,573 Gross margin 3,454,771 4,734,034 Operating
expenses: Engineering and product development 1,319,198 1,016,048
General and administrative 1,749,053 1,222,208 Marketing and sales
1,985,687 1,750,966 Total operating expenses 5,053,938 3,989,222
Income (loss) from operations (1,599,167) 744,812 Interest expense
- net 6,727 32,883 Net income (loss) before provision for income
taxes (1,605,894) 711,929 Provision for income taxes - 70,000 Net
income (loss) (1,605,894) 641,929 Preferred dividend 30,432 30,432
Net income (loss) attributable to common stockholders $(1,636,326)
$611,497 Net income (loss) per share: Basic and Diluted $(0.04)
$0.02 Weighted average number of shares used in computing income
(loss) per share: Basic 36,863,386 36,384,185 Diluted 36,863,386
38,754,414 iCAD, INC. Consolidated Balance Sheets March 31,
December 31, 2006 2005 Assets (unaudited) Current assets: Cash and
cash equivalents $3,233,402 $4,604,863 Trade accounts receivable,
net of allowance for doubtful accounts of $463,000 in 2006 and
$450,000 in 2005 2,814,555 3,958,392 Inventory 3,097,089 2,517,467
Prepaid and other current assets 274,111 176,133 Total current
assets 9,419,157 11,256,855 Property and equipment: Equipment
3,140,901 3,038,344 Leasehold improvements 120,012 120,012
Furniture and fixtures 149,803 149,803 3,410,716 3,308,159 Less
accumulated depreciation and amortization 1,691,121 1,523,724 Net
property and equipment 1,719,595 1,784,435 Other assets: Patents,
net of accumulated amortization 204,988 224,519 Technology
intangibles, net of accumulated amortization 4,193,987 4,348,008
Tradename, distribution agreements and other, net of accumulated
amortization 342,450 398,733 Goodwill 43,515,285 43,515,285 Total
other assets 48,256,710 48,486,545 Total assets $59,395,462
$61,527,835 Liabilities and Stockholders' Equity Current
liabilities: Accounts payable $4,546,868 $4,250,574 Accrued
interest 55,169 48,167 Accrued salaries and other expenses
1,264,671 1,868,736 Deferred revenue 679,002 499,279 Current
maturities of note payable 1,500,000 1,500,000 Total current
liabilities 8,045,710 8,166,756 Loans payable to related party
258,906 258,906 Note payable, less current maturities - 375,000
Total liabilities 8,304,616 8,800,662 Commitments and contingencies
Stockholders' equity: Preferred stock, $ .01 par value: authorized
1,000,000 shares; issued and outstanding 6,374 in 2006 and 2005,
with an aggregate liquidation value of $1,739,000 in 2006 and 2005,
plus 7% annual dividend 64 64 Common stock, $ .01 par value:
authorized 50,000,000 shares; issued 36,931,262 shares in 2006 and
2005; outstanding 36,863,386 shares in 2006 and 2005 369,312
369,312 Additional paid-in capital 130,750,998 130,781,430
Accumulated deficit (79,079,264) (77,473,369) Treasury stock at
cost (67,876 common shares) (950,264) (950,264) Total stockholders'
equity 51,090,846 52,727,173 Total liabilities and stockholders'
equity $59,395,462 $61,527,835 DATASOURCE: iCAD, Inc. CONTACT:
Kevin McGrath of Cameron Associates for iCAD, Inc.,
+1-212-245-4577, Web site: http://www.icadmed.com/
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