Big first-quarter losses for Nashua’s iCAD
NASHUA – ICAD Inc. more than tripled its losses in the first quarter of 2011.
The Nashua company, which makes cancer-detection software, lost $4.18 million in the first quarter, compared to a $1.18 million loss in the first quarter of 2010.
Revenue for the quarter was slightly higher at $7.3 million, compared to $6.5 million in the same period last year.
ICAD has struggled since 2009, following several years of growth. The recession, uncertainty in the health care industry amid changes to federal law, and extended lag times for U.S. Food and Drug Administration approval have impacted the company’s bottom line.
Late last month, the company replaced its chief financial officer.
Darlene Duptula-Hicks stepped down as CFO, but remains on staff as a non-executive employee until May 13. A reason for the departure was not disclosed, but the news came about a month after iCAD posted disappointing financial results for 2010. The company lost $6.2 million on revenue of $25 million.
Replacing Deptula-Hicks was Kevin C. Burns, who has more than 20 year of experience in finance, primarily in the technology industry.
Despite the disappointing first-quarter results, CEO Ken Ferry remained optimistic in a statement released by the company Tuesday. He pointed to an increase in sales during the first quarter.
“Our products are beginning to gain market acceptance and traction,” he said.
ICAD sells software and equipment to help radiologists pinpoint early-stage cancer in tests like mammograms and MRIs. The company’s computer-aided-detection products help identify breast, prostate and colon cancers. A lung cancer product is in development.
Specifically, the company’s SecondLook CAD system is designed to identify breast cancer before a traditional mammogram can pick it up, and its virtual colonoscopy technology offers a less-invasive method of testing than traditional procedures.
In 2010, iCAD entered the cancer treatment market with the purchase of Xoft Inc. The company’s radiation therapy treatment brought $1.3 million in revenue in the most recent quarter.
“We continue to believe that this innovative technology will be a signficant growth engine for iCAD,” Ferry said.
Ashley Smith can be reached at 594-6446 or email@example.com.