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Detection accounted for 80% of the $3.6M (ex-MRI) revenue growth in 2017, with all of that related to growth in Detection product sales – again, related to ramping adoption of the company’s tomo products. Meanwhile, Therapy revenue was down 4% yoy and flat from Q3.įor the full-year, total revenue was $28.1M, up 7% and +15% on an ex-MRI basis. All of the Q4 growth (both yoy and sequential) was driven by the Detection segment and largely reflective of strong adoption of the tomo products. Stripping out MRI revenue, which contributed approximately $400k in the prior-year period, means revenue from comparable operations grew 22% from Q4 2016.
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As a reminder, the company’s MRI assets were sold in Q1 2017. While on a GAAP basis revenue was up 14% yoy, on an apples-to-apples basis, results were even stronger. $7.4M estimate) up 14% yoy, up 13% sequentially Meanwhile, potential opportunities in the (relatively much higher volume) NMSC-capital segment as well as in IORT breast and gyn, means that the value of the Therapy business might be the greatest that it has been in years. The good news is that management expects the elimination of the NMSC-subscription business to meaningfully improve Therapy margins and decrease cash burn. Over the same period, the Therapy segment generated $41M in revenue and incurred aggregate operating losses (excluding the impairment charges) of $17M.īut, hopefully the worst in now in the past. Mostly related to adverse change in NMSC-treatment reimbursement policy and rates, since the end of 2014 ICAD has written down more than $34M in Xoft-related goodwill and intangible assets. Noting that growth in the number of active sites lost steam after peaking in Q3 and lack of sufficient treatment volumes (necessary to cover costs, much less to generate profit), the decision was made to shutter the business – to be clear, the Xoft capital-customer segment not only remains intact but, per comments on the Q4 call, was responsible for ~80% of treatment volume in 2017.īut, as a whole, the Therapy business has struggled to gain sustainable traction since ICAD’s acquisition of Xoft/Axxent in December 2010 (for $12.9M and $5.0M in contingent considerations) and of DermEbx/Radion (for $12.6M) in July 2014. Despite recent increased growth in the number of sites treating for NMSC, in January ICAD decided to pull the plug on the Xoft subscription business.
#ICAD 2017 SKIN#
While almost everything seems to be going nearly to-plan for the Detection segment, the story is much different with Therapy, particularly the skin business – and particularly the skin subscription business. This version ‘2.0’, which is compatible with all OEM systems and received a warm welcome during its recent introduction at ECR, will massively expand the size of ICAD’s tomo target markets – initial contribution from which could come as soon as Q1 ’18. While Q4 is typically ICAD’s strongest, the apparent accelerating adoption of the ‘legacy’ 2D and first-gen 3D tomo (GE-only) applications is obviously encouraging, particularly given the near-term launch of ICAD’s next-gen software. Detection product sales, up 100% yoy (pro-forma for ex-MRI), turned in the best quarter since Q3 2011 (when ICAD was still direct-selling MRI software) and crushed our number by 25%.
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Revenue, particularly in the Detection segment, continued to impress with very strong sales of the tomo (2D and 3D) products pushing total revenue up by 14% yoy. ICAD ( ICAD) reported financial results for their fourth quarter ending December 31st.