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Press release from CNW Group

IDC reports third quarter 2012 results

Monday, November 12, 2012

IDC reports third quarter 2012 results09:00 EST Monday, November 12, 2012CALGARY, Nov. 12, 2012 /CNW/ - Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSX: IDL) a global leader in the high growth digital radiography (DR) equipment market, today reported the financial results for the third quarter ended September 30, 2012.Third Quarter 2012 HighlightsSuccessfully closed on a non-brokered private placement of $2.25 million during the quarter;Gross revenues were lower by 57 percent to $0.82 million compared to $1.92 million for the same quarter last year and were lower by 56 percent to $2.57 million compared to $5.91 million on a year to date basis, due to decrease in revenues from Emerging Markets due to working capital constraints;Gross margins were 30 percent for the quarter compared to 28 percent for the same quarter last year and 30 percent compared to 28 percent on a year to date basis, largely due to lower margin sales into the Asia Pacific region;Sales and marketing, general and administrative, production and manufacturing and research and development expenses were lower by 14 percent to $0.86 million from $1.00 million during the quarter compared to the same quarter last year and were reduced by 19 percent to $2.41 million from $3.00 million on a year to date basis compared to the same period last year;Net loss for the quarter ended September 30, 2012 was $1.25 million compared to a net loss of $0.45 million for the same quarter last year and the net loss was $1.32 million compared to $1.66 million on a year to date basis compared to the same period last year;Total expenses before finance costs for the quarter ended September 30, 2012 were $1.48 million compared to total expenses of $0.95 million for the same quarter last year and to $2.31 million compared to $3.09 million on a year to date basis compared to the same period last year;Purchase orders received during the third quarter and opening backlog totaled $1.1 million ($0.82 million shipped and recognized, $0.28 million booked to closing backlog);Trade and other receivables decreased by $0.48 million compared to December 31, 2011 on  collection of approximately $3.10 million (including $0.58 million collect from an old trade receivable that was fully allowed for as bad debts during previous periods) during the first half of 2012, Days Sales Outstanding (DSO) for the quarter was 13 days compared to 18 days for the same quarter last year;Reduced inventory by $0.47 million compared to December 31, 2011;Trade and other payables decreased by $0.94 million compared to December 31, 2011.Net loss for the third quarter of 2012 was $1,249,204 or $0.00 per basic and diluted loss per share compared to a net loss of $449,219 or $0.00 per basic and diluted loss per share for the same quarter last year.  Year-to-date, net loss was $1,318,287 or $0.00 per basic and diluted loss per share compared to a net loss of $1,662,893 or $0.01 per basic and diluted loss per share for the same period last year."We are continuing to evaluate and identify new acquisition opportunities for the Company that will enable us to grow our operations specifically in the Asia Pacific region; in addition we also continue to work on potential tender contracts in this region, " commented T.T. Lee, IDC Chairman and Chief Executive Officer.Lee continued, "The recent appointment of the new independent board and our strategic discussions with other signification stakeholders will allow us to kick start the business and focus on growth and profitability for the Company and I look forward to communicating more details over the coming months."Imaging Dynamics Company Ltd.Consolidated Statements of Financial Position           September 30   December 31   2012   2011   (Unaudited)    (Audited)        Assets       Current Assets        Cash and cash equivalents     $1,082,220  $134,629 Trade and other receivables         147,191      631,020 Inventory          1,820,111      2,293,494 Prepaid expenses and other         173,991      91,601   3,223,513     3,150,744        Property, plant and equipment           249,126   304,627Intangible assets           265,475   318,876          $3,738,114  $3,774,247                Liabilities       Current Liabilities        Loan - short term portion     $-  $1,000,000 Trade and other payables         2,212,998     3,156,550 Customer deposits         113,842      459,672 Warranty provision         292,850    614,050   2,619,690     5,230,272        Loan - long term portion           1,000,000   -  $3,619,690  $3,774,247                Shareholders' Equity (Deficiency)       Share capital        74,389,826      72,145,740Share-based payments reserve         6,865,445      6,216,795Contributed surplus         4,630,094     4,053,035Warrants reserve        -      577,059Deficit         (85,766,941)      (84,448,654)           118,424     (1,456,025)          $3,738,114  $3,774,247          Imaging Dynamics Company Ltd.Consolidated Statements of Operations and Comprehensive Loss(Unaudited)     Three Months Ended Nine Months Ended   September 30   September 30   September 30     September 30   2012    2011     2012    2011             Revenues  $819,060 $1,921,652 $2,573,865 $5,905,819             Cost of sales  571,938     1,391,601     1,791,504    4,258,778             Gross profit     247,122     530,051     782,361    1,647,041             Expenses             Sales and marketing    285,742     238,789     755,808    777,128 General and administrative     404,978     508,556     1,121,389     1,308,592 Production and manufacturing     126,692     169,416     378,906     484,253 Research and development     39,345     82,105     155,337     429,662  Foreign exchange loss (gain)     2,300     108,681     (11,941)     54,948 Warranty (recovery) expense     (48,900)     (228,400)    (267,309)     (305,300) Share-based payments     636,895    26,402     648,650    199,521 Bad debts (recovery) expense     -     -    (580,151)     - Amortization     34,160    43,508     108,902    139,129   1,481,212     949,057     2,309,591    3,087,933             Loss before finance costs     (1,234,090)     (419,006)    (1,527,230)    (1,440,892)             Finance costs             Interest recovery    -  -    257,178  - Interest (expense)    (15,124)     (30,246)     (48,329)  (90,453) Finance (expense)    -  -  -  (138,687) Interest and other income     10    33     94     7,139             Net loss and comprehensive loss   $(1,249,204) $(449,219) $(1,318,287) $(1,662,893)                          Net profit (loss) per share             Basic and diluted  $(0.00) $(0.00) $(0.00) $(0.01)                                                    Imaging Dynamics Company Ltd.Consolidated Statements of Changes in Equity(Unaudited)                                Share capital  Share-basedpaymentsreserve  Contributedsurplus  Warrantsreserve  Deficit  Total equity                   Balance, January 1, 2012 $72,145,740 $6,216,795 $4,053,035 $577,059 $(84,448,654) $(1,456,025)Issued for cash - private placement  2,250,000  -  -  -  -  2,250,000Share issue costs  (5,914)  -  -  -  -  (5,914)Share-based compensation  -  648,650  -  -  -  648,650Expired warrants  -  -  577,059  (577,059)  -  -Loss for the period   -  -  -  -  (1,318,287)     (1,318,287)Balance, September 30, 2012 $74,389,826 $6,865,445 $4,630,094 $- $(85,766,941) $118,424         -         Balance, January 1, 2011 $71,527,873 $6,020,671 $4,053,035 $328,752 $(82,534,955) $(604,624)Issued for cash - private placement  880,000  -  -  -  -  880,000Share issue costs  (13,826)  -  -  -  -  (13,826)Share-based compensation  -  199,521  -  -  -  199,521Warrants  (248,307)  -  -  248,307  -  -Loss for the period   -  -  -  -  (1,662,893)  (1,662,893)Balance, September 30, 2011 $72,145,740 $6,220,192 $4,053,035 $577,059 $(84,197,848) $(1,201,822)                                 Imaging Dynamics Company Ltd.Consolidated Statements of Cash FlowsFor the nine months ended September 30 (Unaudited)    2012    2011        Cash provided by (used in)       Operating activities        Net loss    $(1,318,287)  $(1,662,893)  Items not affecting cash          Finance expense       -      138,687   Amortization       108,902      139,129   Share-based payments       648,650      199,521   Warranty       (321,200)   (372,719)           (881,935)   (1,558,275)  Change in non-cash working capital       (414,560)   1,029,405           (1,296,495)    (528,870)Financing activities         Issuance of shares, net of issuance costs   2,244,086      866,174                Net increase (decrease) in cash and cash equivalents      947,591      337,304        Cash and cash equivalents, beginning of period      134,629      18,373        Cash and cash equivalents, end of period $1,082,220  $355,677           About Imaging Dynamics Company (IDC):IDC is a medical devices technology company and innovative force in the high growth field of digital radiography (DR) technology with approximately 3,000 installations in 50 countries. IDC's product line of CCD-based X-Series direct capture technology and innovaXion Flat Panel technology replaces conventional film-based diagnostic imaging and provides a cost-effective solution for producing high quality diagnostic images, enhancing patient care and improving workflow; all without the use of film, environmentally unfriendly chemicals, and cassettes.Throughout its history, IDC has been recognized by multiple industry organizations and research analysts such as: Frost & Sullivan, Deloitte Technology and PROFIT; for its dedication to innovation, global growth, and customer focused value proposition.The IDC head office is based in Calgary, Canada with business offices in Hong Kong and China.Visit the IDC Web site:  www.imagingdynamics.comStatements 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.SOURCE: Imaging Dynamics Company Ltd.For further information: Contacts:  Mr. T.T.Lee Chairman and Chief Executive Officer 1.403.251.9939 ttlee@imagingdynamics.com