iCAD 4Q falters

February 26, 2009

Other headlines:Amicas revenues flattenFormer Vital chief joins Streamline board

iCAD 4Q falters

Computer-aided detection specialist iCAD reported record year-end revenues and profit, but much of the growth in fiscal 2008 ebbed in the fourth quarter. The company deferred guidance on the first half of 2009, citing the "challenging economic environment and associated uncertainty in the healthcare markets." A 41% leap in annual revenue to $37.5 million contrasted sharply with the fourth quarter's revenue of $9.3 million, representing a 15% increase over the year-earlier period. Annual net income of $4.4 million compared with a net of $321,000 in 4Q 08. Revenue growth for 2008 was paced by booming sales of digital mammography equipment. Demand for this equipment is now dropping. iCAD is seeking to broaden its revenue stream with software packages for breast and prostate MR, as well as CT colonography.

Amicas revenues flatten

Revenues at PACS/IT vendor Amicas were flat for the fourth quarter at $11.7 million compared with the year-earlier period. The company absorbed a net loss in the period of $28.7 million, or $0.81 per share, due largely to an impairment charge of $27.5 million -- $27.3 million due to goodwill write-offs and $0.2 million due to internal purchase of software. The 4Q loss compares with a net loss of $902,000, or $0.02 per share, for the year-earlier period. Total revenue for the year ended Dec. 31, 2008, was $50.4 million, compared with $49.9 million for the previous year. At the end of 2008, Amicas had $55 million in cash, no long-term debt, and working capital of $47 million. The company has offered $39 million to purchase PACS/IT vendor Emageon.

Former Vital chief joins Streamline board

Jay D. Miller has taken a seat on the board of directors at Streamline Health Solutions. From 2002 to 2008, Miller served as president and CEO of Vital Images, a provider of advanced visualization software. Streamline Health supplies tools for automating and otherwise improving the efficiency of handling documents.