iCAD Announces Estimated Q4 and Fiscal Year 2021 Revenues
Company expects preliminary
estimated Q4 2021 revenues to be between $7.8-$8.0 million
NASHUA,
N.H., January 4, 2022 — iCAD, Inc. (NASDAQ: ICAD), a global medical technology
leader providing innovative cancer detection and therapy solutions, reported
select preliminary, unaudited financial results for the fourth quarter and full
year of 2021. Based on preliminary, unaudited financial information, the
Company expects total revenue for the fourth quarter of 2021 to be between $7.8
and $8.0 million and total revenue for the full year 2021 to be approximately $33.6-$33.8
million.
“Our sales
in Q4 fell far below sales reported for Q4 of 2020, based primarily on the
disruption to our business from the surge of the COVID-19 Omicron variant,
which caused significant clinical and administrative staffing shortages and limited
availability of hospital decision makers to issue purchase orders in the last
three weeks of 2021. iCAD’s Detection
business, which was more heavily impacted by the shortfall in Q4 than our
Therapy segment, has historically realized a high proportion of quarterly sales
in the last month of the quarter. In
December, our customers expressed a singular focus on surging COVID-19 infection
rates, which caused attention to be diverted from non-essential purchases
and/or ability to process purchase orders, causing a number of anticipated sales
to be delayed or postponed beyond December 2021 and preventing the closure of
deals that would have represented a high percentage of quarterly sales. International sales continued to be sluggish
throughout Q4 2021, as a result of the ongoing and re-instituted COVID-19
related restrictions in most of Europe and the rest of iCAD’s non-U.S. markets.
We were additionally impacted by greater
than 30% of our global sales team being stricken with COVID-19 in
December. We remain confident in the
clinical and health economic value proposition our world-leading product
portfolio delivers to our customers, and fully expect our business to return to
a more normalized growth trajectory in the first half of 2022,” said Stacey Stevens,
President and incoming CEO of iCAD, Inc.
“We
believe the impact of the resurgence of COVID-19 will cause the underlying
market trends around customer priorities and purchasing patterns we have
previously communicated to accelerate as each addresses a customer problem
exacerbated by the operating and economic implications of the ongoing pandemic.
These trends include the emergence of the Enterprise Sales dynamic highlighting
the IT department role in decision-making, the increasing market demand for a cash-preserving
monthly subscription offering (operating expense) rather than perpetual
(capital expense) licensing of software, and the emergence of AI aggregating platform
companies.
“Because
we believe these market changes will hasten, we are planning to accelerate the
adaptation of our commercial operations to these evolving market trends in Q1
2022, thereby maximizing our access to the entirety of our large opportunity. In Q1 2022, iCAD will offer a subscription
license to address the customer need for monthly operating cash payments, enabling
customers to purchase our solutions in ways that best fit their priorities by integrating
our software into partners’ systems, platforms, and equipment. We will simultaneously accelerate the reorganization
of our sales functions to address marketplace changes, and also position
ourselves to penetrate additional segments that will be increasingly available
to us.
“We will
also continue to drive the growth of the Therapy segment with a commercial
focus on the dermatology market and continued development of the glioblastoma indication,”
Stevens continued.
iCAD’s
consolidated financial statements for the year ended December 31, 2021 are not
yet available. The preliminary estimated financial information included in this
press release for the three months and year ended December 31, 2021 is based
solely on management’s estimates reflecting currently available preliminary
information, and remains subject to iCAD’s consideration of subsequent events,
particularly as it relates to material estimates and assumptions used in
preparing the Company’s consolidated financial statements for the year ended December
31, 2021. iCAD’s final consolidated financial results as of and for the year
ended December 31, 2021, may materially differ from estimates set forth in this
release. Furthermore, the information presented herein does not present all
information necessary for an understanding of the Company’s year ended December
31, 2021.
About iCAD, Inc.
Headquartered in Nashua, NH, iCAD® is
a global medical technology leader providing innovative cancer detection and
therapy solutions. For more information, visit www.icadmed.com and www.xoftinc.com.
Forward-Looking Statements
Certain statements contained in this
News Release constitute “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements about
the Company’s expected revenue for the quarter and year ended December 31,
2021, and the future prospects for the Company’s technology platforms and
products. Such forward-looking statements involve a number of known and unknown
risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any
prior results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not limited, to the
Company’s ability to achieve positive results from this or any future studies,
business and strategic objectives, the ability of IORT to provide flexibility,
mobility or other advantages, to be more beneficial for patients than
traditional therapy or to be accepted by patients or clinicians, the impact of
supply and manufacturing constraints or difficulties, product market
acceptance, possible technological obsolescence of products, increased
competition, litigation and/or government regulation, changes in Medicare or
other reimbursement policies, risks relating to our existing and future debt
obligations, competitive factors, the effects of a decline in the economy or
markets served by the Company; and other risks detailed in the Company’s
filings with the Securities and Exchange Commission. The words “believe,”
“demonstrate,” “intend,” “expect,” “estimate,” “will,” “continue,”
“anticipate,” “likely,” “seek,” and similar expressions identify
forward-looking statements. Readers are cautioned not to place undue reliance
on those forward-looking statements, which speak only as of the date the
statement was made. The Company is under no obligation to provide any updates
to any information contained in this release. For additional disclosure
regarding these and other risks faced by iCAD, please see the disclosure
contained in our public filings with the Securities and Exchange Commission,
available on the Investors section of our website at http://www.icadmed.com and on the SEC’s website at http://www.sec.gov.
Media Inquiries:
Jessica Burns, iCAD
+1-201-423-4492
Investor Relations:
Brian Ritchie, LifeSci Advisors
+1-212-915-2578