Review of Financial Analysis: iCAD, Inc.’s (NASDAQ:ICAD)

on 23 August 2k19 shares of iCAD, Inc.’s (NASDAQ:ICAD) stock showed the down by -3.08% during the normal trading session on Friday and reaching a 52-week high of -19.73% during the day while it closed the day at $6.19. The stock last traded volume of 111,551 shares was it’s an average volume of 143,214 shares.

iCAD, Inc. (ICAD) recently stated financial results for the three and six months ended June 30, 2k19.

2nd quarter 2019 Highlights:

  • Total revenue of about $7.3M, a raise of 19% over second quarter of 2k18.
  • Gross profit of $5.7M, or 78%, in the second quarter of 2k19 as contrast to $4.8M, or 78%, in the second quarter of 2k18.
  • GAAP Net Loss of $3.5M, or ($0.20) per diluted share, which includes a $1.9M non-cash charge associated with the fair value accounting treatment of the Q4 2k18 convertible debentures.
  • Non-GAAP Adjusted EBITDA loss of ($1.0)M contrast to non-GAAP Adjusted EBITDA loss of ($0.3)M in the second quarter of 2k18.
  • Non-GAAP Adjusted Net loss of $1.6M or ($0.09) per diluted share contrast to non-GAAP adjusted Net loss of $1.0M or ($0.06) per share.

First Half 2019 Highlights:

  • Total revenue of about $14.1M, a raise of 13% over the first half of 2k18.
  • Detection product revenue of about $6.6M, a raise of 33% over the first six months of 2k18.
  • Gross profit of $11.0M, or 78%, in the first half of 2k19 as contrast to $9.3M, or 74%, in the first half of 2k18.

“We have built important momentum throughout our business in the first half of 2k19,” stated Michael Klein, Chairman and Chief Executive Officer of iCAD, Inc.  “In Detection, our commercial launch of ProFound AI™, our latest, deep-learning, cancer detection software solution for digital breast tomosynthesis, continues to see increased market adoption, and our product mix is increasingly shifting to ProFound AI with each passing quarter.  Moreover, we are positioned to gain meaningful traction with this product in the second half of 2k19.  Our recent announcement that that SimonMed Imaging, the largest physician owned imaging provider with 150 locations across the U.S., will be implementing ProFound AI in its centers, will have a positive impact on the second half of the year.”

Gross Profit

Gross profit for the second quarter of 2k19 was $5.7M, or 78% of revenue, contrast to $4.8M, or 78% of revenue, for the second quarter of 2k18.  Gross profit percent changes are primarily Because of changes in the mix of business, consulting costs related to non-recurring engineering revenue, additional manufacturing investments and amortization of purchased intangibles.

Operating Expenses

Total operating expenses for the second quarter of 2k19 were $7.2M, a $1.5M increase, or 26% increase, from the $5.7M in the second quarter of 2k18. The increase was driven by increased marketing and sales expenses in support of our commercialization efforts to drive adoption of Profound AI.

GAAP Net Loss

 Net loss for the second quarter of 2k19 was ($3.5)M, or ($0.20) per diluted share, contrast with a net loss of ($1.0)M, or ($0.06) per diluted share, for the second quarter of 2k18. GAAP Net Loss includes a $1.9M non-cash charge associated with the fair value accounting treatment of our convertible debentures issued in December 2k18.

The Corporation has price to sale ratio of 4.36 and price to cash ratio of 10.08. Net profit margin of the firm was recorded at -34.60% and operating profit margin was calculated at -30.90% while gross profit margin was measured as 77.50%. Beta factor, which measures the riskiness of the security, was registered at 1.11.

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