Imaging Dynamics reports $1.56M net loss for first-quarter 2010

Imaging Dynamics Company Ltd. ("IDC" or the "Company") (TSX: IDL) a global leader in the high growth digital radiography (DR) equipment market, today reported financial results for the first quarter ended March 31, 2010.

First Quarter 2010 Highlights - Sales and marketing, general and administrative, production and manufacturing and research and development expenses were all down by 15.7 percent to $1,599,529 from $1,898,435 during the quarter compared to the same quarter last year; - Purchase orders received during the first quarter and opening backlog totaled $1.3 million ($0.9 million shipped and recognized, $0.4 million booked to closing backlog); - Reduced receivables by $0.6 million compared to December 31, 2009 on the collection of $1.5 million during the quarter; Days Sales Outstanding (DSO) for the quarter was 88 days, one of the lowest in the last sixteen quarters; - Reduced inventory by $0.5 million compared to December 31, 2009; - Reduced payables and accruals by $0.2 million compared to December 31 2009; - Reduced total expenses by 16.3 percent to $1.8 million from $2.2 million during the quarter compared to the same quarter last year; - Gross revenues were lower by 64.5 percent compared to the same quarter last year; which was largely due to the decline in revenues from Asia Pacific, where the orders have been pushed into second and third quarters of 2010 and slower purchasing decisions in other regions; and - Gross margins were 27.7 percent for the quarter compared to 25.9 percent for the same quarter last year.

Net loss was $1,565,308 or $0.02 of basic and diluted loss per share for the quarter ended March 31, 2010 compared to a loss of $1,513,593 or $0.02 of basic and diluted loss per share for the preceding comparative quarter.

Commenting on first quarter 2010 results, Tom Boon, IDC President and Chief Executive Officer stated, "It continues to be a challenging economic environment in the global medical digital imaging market segment in which the Company competes. In the past quarter there were moderate signs for improvement in the United States. Although sales in the Asia Pacific region were below expectation, I expect that this region will be on or above plan throughout the remainder of the year."

Boon continued, "We have made moderate improvements on the balance sheet and continue to demonstrate the organization's ability to effectively control and reduce expenses. The management and the Board are proactively considering alternatives for improving the Company's working capital. IDC has a good business foundation, a competitive product offering, and respected distribution channels which will enable the company to improve sales as the market rebounds throughout the year."

IDC will be holding its annual general meeting ("AGM") on Tuesday May 18, 2010 at 3:30 p.m. MDT and invites all shareholders to attend. There is no scheduled investor call to review the 2010 first quarter results.