iCAD, Inc. Reports 13% Revenue Decline and Increased Net Loss in Q1 2022

iCAD, Inc. reported a decline in financial performance for the first quarter of 2022, with total revenue decreasing by approximately 13% to $7.5 million, down from $8.6 million in the same period of 2021. The decrease was attributed to a drop in both the Detection and Therapy segments, with Detection revenue falling by $0.2 million and Therapy revenue decreasing by $0.9 million. The company experienced a net loss of $3.5 million, compared to a loss of $1.6 million in the prior year, resulting in a net loss per share of $0.14, compared to $0.07 in the first quarter of 2021.

The company's operational metrics reflected significant changes compared to the previous fiscal period. iCAD's cash and cash equivalents decreased to $29.8 million from $34.3 million at the end of 2021. The total current assets also fell to $47.9 million, down from $50.3 million. The company’s employee headcount increased, contributing to higher operating expenses, which rose by 12.9% to $8.8 million, primarily due to increased personnel costs and travel expenses as pandemic restrictions eased.

In terms of strategic developments, iCAD has focused on reorganizing its U.S. commercial operations to enhance its market presence. The company reported a notable increase in revenue from original equipment manufacturer customers, which partially offset declines in direct customer revenue. However, the Therapy segment faced challenges, particularly a 50.1% drop in product revenue, largely due to timing issues related to capital raises by distributors. The company continues to monitor the impact of the COVID-19 pandemic and geopolitical tensions in Eastern Europe on its operations and sales.

Looking ahead, iCAD expressed cautious optimism regarding its liquidity, with a net working capital of $33.5 million as of March 31, 2022. The company believes its current cash position is sufficient to sustain operations for at least the next 12 months. However, it acknowledged that ongoing market volatility and the potential resurgence of COVID-19 could affect future cash flows and operational performance. iCAD remains committed to its strategic initiatives in cancer detection and therapy, while navigating the challenges posed by external market conditions.