Novadaq announces financial results for the third quarter of 2009

Novadaq^® Technologies Inc. (TSX:NDQ), a developer of real-time imaging systems for use in the operating room, today announced 2009 third quarter revenues of $1,723,000 compared to revenue of $3,311,000 in third quarter 2008. In accordance with corporate policy, a previously reported order in excess of $2,000,000 has not been recorded in sales due to cash not yet received.

Financial Results

As at September 30, 2009, the Company had cash and cash equivalents of $5,063,000. The Company's cash used in operating activities was $3,117,000 in Q3-2009 compared to $3,430,000 in Q3-2008. Based on current cash utilization and the cash the Company expects to generate, the Company believes it has sufficient resources to support operations through the end of year 2010. Novadaq's Q3-2009 net loss of $3,852,000 or $0.16 per share, compared to net loss of $4,066,000 or $0.17 per share in Q3-2008. Unless otherwise indicated, all dollar amounts expressed in this press release are United States (U.S.) dollars.

"Because SPY Imaging is a platform technology, this year has been more about finding and validating the most compelling applications and less about growing revenues in an unusually difficult market for new technologies. In particular, clinical data presented in October 2009 demonstrates the potential for SPY Imaging to substantially eliminate skin necrosis and other complications associated with breast reconstruction," said Dr. Arun Menawat, Novadaq CEO and President. "As a result of the emerging data, we are now in discussions with five multinational corporations to pursue technology alliances that would allow us to leverage their strong sales and marketing capabilities. The latest data, and the potential for alliances, will be topics of the discussion during the analyst web conference call scheduled on November 12, 2009 at 10 am ET."

Recently Reported Clinical Data

At the Annual Meeting of the American Society of Plastic Surgeons, Plastics 2009, held in Seattle in October, Glyn E. Jones, MD., Director of Reconstructive Surgery at the University of Illinois College of Medicine at Peoria, reported that when following the evidence provided by SPY Imaging, skin edge necrosis rates in non-smoking, skin sparing mastectomy patients was reduced from the 15% national average to 3%. Skin necrosis in TRAM flap breast reconstruction patients was also reduced from the average of 8%-10% to virtually 0%. Dr. Jones concluded that the information provided by SPY Imaging was highly accurate.

Additionally in October, at the 95th Annual American College of Surgeons Clinical Congress, Tom DeMeester, MD., Chairman of the Department of Surgery at the University of Southern California, School of Medicine, and his colleagues, presented the results of a study of 45 patients undergoing esophageal reconstruction following esophagectomy using a gastric pull-up conduit and involving SPY Imaging. Gastric pull-up conduits are frequently reported to be relatively ischemic at their tip. Results of the study demonstrated that SPY reduced the potential for anastomotic complications in gastric pull-up reconstruction by accurately identifying uneven conduit perfusion in 31% of patients and compromised perfusion requiring further resection in 18%. 

SOURCE Novadaq Technologies Inc.