iCad's Q2 revenues rise, losses narrow

July 28, 2010 by MassDevice staff

Second-quarter sales rose 6.4 percent for iCad Inc. as net losses narrow nearly 50 percent.

iCAD, Inc. (NSDQ:ICAD) posted a 6.4 percent increase in second-quarter sales and narrowed its net losses by 47.4 percent.

The Nashua, N.H.-based firm, which makes CAD software for cancer detection systems, reported net losses of $736,000, or 2 cents per share, on sales of $6.1 million during the three months ended June 30. That compares with net losses of $1.4 million, or 3 cents per share, on sales of $5.7 million during the same period last year.

President and CEO Ken Ferry said in prepared remarks that the company was "encouraged by signs of stabilization in the U.S. marketplace," citing "fairly consistent demand" for its digital mammography CAD systems.

"We are hopeful that our business trend will improve further in the second half of the year as we accomplished these results while one of our major OEM partners is awaiting FDA clearance for their new digital mammography system and were only able to ship a small quantity of the older version system in the second quarter," Ferry said, noting that about 35 percent of the U.S market and roughly 50 percent of the international market has yet to convert from film to digital mammography.

iCad in March won a patent from the U.S. Patent and Trademark Office for its SecondLook Digital Computer-Aided Detection system, covering "lesion metrics" used to provide radiologists with enhanced clinical information. In June, the company inked a deal to supply cancer detection products to Veterans Administration and Dept. of Defense hospitals.