Click here to close now.


News Feed Item

NOVADAQ Reports 2013 Fourth Quarter and Full Year Financial Results

TORONTO, ONTARIO -- (Marketwired) -- 02/06/14 -- Novadaq® Technologies Inc. ("NOVADAQ" or the "Company") (NASDAQ: NVDQ)(TSX: NDQ), the leading developer and provider of clinically relevant imaging solutions for use in surgical and diagnostic procedures, today announced fourth quarter and full-year 2013 financial results. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (U.S.) dollars.

NOVADAQ reported total revenues for the fourth quarter and full year 2013 of $10.7 million and $35.0 million, respectively, representing increases of 57% and 52% as compared to the same periods in 2012. Growth was driven by increases in the number of patients treated using NOVADAQ's fluorescence imaging technologies, and increases in capital sales of our devices.

Fourth quarter and full year 2013 SPY technology revenues were $10.0 million and $31.6 million, respectively, representing increases of 71% and 64% compared to the same periods in 2012. Fourth quarter SPY technology recurring revenues increased by 37% to $4.1 million compared to $3.0 million reported in Q4-2012.

Fourth quarter gross profit of $6.7 million (63% margin), represents an increase of 48% compared with $4.6 million (67% margin), in Q4-2012, and an increase of 17% compared with $5.7 million (65% margin) in Q3-2013.

Fourth quarter of 2013 operating burn (cash burn by operating activities before changes in working capital) was $1.4 million compared with an operating contribution of $1.1 million in the fourth quarter of 2012. During the fourth quarter, working capital consumed $0.7 million, and $1.8 million was invested in fixed assets, the majority of which related to building the SPY technology systems installed bases.

Net loss of $2.7 million for the fourth quarter of 2013 increased by $5.8 million compared with the $3.1 million net profit in fourth quarter 2012. Fourth quarter 2013 loss per share was $0.05. Excluding the impact of non-cash $0.4 million warrants revaluation gain in fourth quarter 2013, loss per share was $0.06.

Cash and cash equivalents were $182.3 million at December 31, 2013, reflecting an increase of $95.4 million, compared to the cash position as of September 30, 2013. On October 29, 2013, NOVADAQ closed the sale of 6,250,000 common shares on a bought deal basis, at a price to the public of $16.75 per common share. After the underwriting commissions and other offering expenses, NOVADAQ received net proceeds of approximately US$99.6 million.

NOVADAQ shipped 143 SPY Fluorescence technology imaging systems during the fourth quarter of 2013. The combined installed base of SPY Fluorescence technology increased by 157 systems and now exceeds 1,200 systems. NOVADAQ estimates that its imaging systems were used in more than 6,400 procedures during the quarter.

"Key accomplishments for NOVADAQ in 2013 included the launch of two new imaging systems, PINPOINT and LUNA, the building of our direct U.S. sales team, and the appointment of a highly capable network of distributors in the Asian markets", said Dr. Arun Menawat, NOVADAQ's President and CEO. "Additionally, several clinical studies were presented during the year which confirmed that the use of NOVADAQ's imaging technologies results in significant clinical benefit in our two lead applications, breast reconstruction and colorectal surgery. We also identified new applications for our imaging systems including lymph node mapping, bile duct imaging during cholecystectomy, and visualization of endometriotic lesions during gynecological surgery. Clinical validation studies are currently underway and we expect initial findings to become available later this year."

Conference Call

NOVADAQ is pleased to invite all interested parties to participate in a conference call today, Thursday, February 6, 2014, at 8:30 a.m. Eastern Time during which the results will be discussed.

Those wishing to access the live conference call by telephone should dial 1-877-407-8031 (within Canada and the United States) or 1-201-689-8031 (international callers) several minutes prior to the beginning of the call. A telephonic replay of the conference call will be made available until midnight on March 6, 2014 and can be accessed by dialing 1-877-660-6853 (within Canada and the United States) or 1-201-612-7415 (international callers) and entering the conference identification number 13575239 when prompted.

The call will be archived for 90 days on the Company's website at under the "Events" tab in the Investors section. In addition, a replay of the call will be available for download to a portable audio player or computer, as an MP3 or podcast file, at the same location on NOVADAQ's website.

About Novadaq Technologies Inc.

Enabling medical professionals with clinically relevant, point-of-care imaging solutions to enhance the lives of patients and their caregivers, while reducing health care costs, is NOVADAQ's global mission. SPY® fluorescence imaging technology provides surgeons with real-time visualization, leading to improved outcomes and reduced costs without exposing the patient to radiation. More than 80 peer-reviewed publications demonstrate that the use of SPY imaging technologies during complex surgery and diagnostic procedures, leads to lower rates of post-operative complications and lower hospital costs.

SPY Imaging Systems are United States Food and Drug Administration 510(k) cleared for use in seven surgical specialties. The endoscopic version of SPY called PINPOINT®, combines the capabilities of SPY Imaging with high definition ("HD") visible light visualization offered by conventional endoscopes. LUNA™ is used to assess perfusion in patients being treated for non-healing wounds. In August 2013, NOVADAQ acquired the surgical scintigraphy imaging technology, which is being developed for perioperative imaging of sentinel lymph nodes and tumor margins. NOVADAQ's unique business model of partnering with market-leading companies to drive adoption of our imaging technology, while building our own commercial infrastructure, is the cornerstone of our corporate strategy for growth.

Forward Looking Statements

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on NOVADAQ's current beliefs as well as assumptions made by and information currently available to NOVADAQ and relate to, among other things, the Company's strategy, strategic goals, research and development activities, research and clinical testing outcomes, taxes, capital expenditures, future operations, future financial position, future revenues/results, projected costs, prospects and plans and objectives of management.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by NOVADAQ in its public securities filings available at and, actual events may differ materially from current expectations. NOVADAQ disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Novadaq Technologies Inc.

(expressed in U.S. dollars, except common shares outstanding)

                             As at December 31, 2013 As at December 31, 2012
Current assets
 Cash and cash equivalents    $         182,329,782   $          38,954,181
 Accounts receivable                      8,502,095               4,056,954
 Prepaid expenses and other
  assets                                  1,032,431                 852,674
 Inventories                              3,845,695               1,713,577

Non-current assets
 Property and equipment, net             13,360,833              10,717,661
 Deferred tax assets                              -                 170,442
 Intangible assets, net                   3,303,647               1,121,808

Total Assets                  $         212,374,483   $          57,587,297

Current liabilities
 Accounts payable and accrued
  liabilities                 $           7,123,563   $           3,407,329
 Provisions                                 187,080                  85,260
 Deferred revenue                           380,325                 637,864
 Deferred partnership fee
  revenue                                 1,300,000               1,300,000
 Repayable government
  assistance                                 17,587                 203,148

Non-current liabilities
 Deferred tax liabilities                         -                 170,442
 Convertible debentures                           -               4,656,746
 Deferred revenue                           193,626                 144,204
 Deferred partnership fee
  revenue                                 1,991,666               3,291,666
 Repayable government
  assistance                                      -                  17,946
 Shareholder warrants                    26,065,994              13,002,930

Total Liabilities             $          37,259,841   $          26,917,535

Shareholders' Equity
 Share capital                $         307,103,074   $         139,946,563
 Contributed surplus                      8,953,041               7,908,224
 Equity component of
  convertible debentures                          -               1,454,353
 Deficit                               (140,941,473)           (118,639,378)

Total Shareholders' Equity    $         175,114,642   $          30,669,762

Total Liabilities and
 Shareholders' Equity         $         212,374,483   $          57,587,297

Total number of common shares
 outstanding                             54,894,038              40,226,243

Novadaq Technologies Inc.


(expressed in U.S. dollars, except per share amounts)

                     For the three months ended  For the twelve months ended
                    ---------------------------- ---------------------------
                      December 31,  December 31,  December 31,  December 31,
                              2013          2012          2013          2012
                    ---------------------------- ---------------------------

Product sales        $  9,643,337  $  5,770,240  $ 31,019,451  $ 19,037,096
Royalty revenue           616,460       545,523     1,889,404     1,849,668
Partnership fee
 revenue                  325,000       325,000     1,300,000     1,300,000
Service revenue           163,555       204,918       811,683       802,296
                    ---------------------------- ---------------------------
Total revenues         10,748,352     6,845,681    35,020,538    22,989,060
Cost of sales           4,003,560     2,281,116    12,932,695     8,537,408
                    ---------------------------- ---------------------------
Gross profit            6,744,792     4,564,565    22,087,843    14,451,652
                    ---------------------------- ---------------------------

Selling and
 expenses               4,863,437     1,357,015    14,060,861     4,926,376
Research and
 expenses               2,281,978     1,640,963     7,974,455     5,958,499
 expenses               2,865,881     1,601,586     7,233,570     6,573,484
Write-down of
 equipment                      -             -        25,488             -
Write-down of
 inventory                      -             -        31,285        57,540
                    ---------------------------- ---------------------------
Total operating
 expenses              10,011,296     4,599,564    29,325,659    17,515,899
                    ---------------------------- ---------------------------

Loss from operations   (3,266,504)      (34,999)   (7,237,816)   (3,064,247)

Finance costs              (3,189)     (180,405)     (182,896)     (707,500)
Finance income             42,262        20,969       109,089        61,798
Warrants revaluation
 adjustment               444,995     3,389,066   (15,015,472)   (8,558,323)
Gain on investment              -             -        25,000        25,000
                    ---------------------------- ---------------------------
Loss from operations
 before income taxes   (2,782,436)    3,194,631   (22,302,095)  (12,243,272)
Income tax recovery
 (expense)                 67,500      (100,861)            -      (100,861)
                    ---------------------------- ---------------------------

Net loss and
 comprehensive loss
 for the year          (2,714,936) $  3,093,770   (22,302,095) $(12,344,133)
                    ---------------------------- ---------------------------
                    ---------------------------- ---------------------------

Basic income (loss)
 and comprehensive
 income (loss) per
 share for the
 period                     (0.05)         0.08  $      (0.47) $      (0.32)
                    ---------------------------- ---------------------------
                    ---------------------------- ---------------------------
Diluted loss and
 comprehensive loss
 per share for the
 period                     (0.05)            -  $      (0.47) $      (0.32)
                    ---------------------------- ---------------------------
                    ---------------------------- ---------------------------

Novadaq Technologies Inc.


(expressed in U.S. dollars)
                     For the three months ended  For the twelve months ended
                    ---------------------------- ---------------------------
                      December 31,  December 31,  December 31,  December 31,
                              2013          2012          2013          2012
                    ---------------------------- ---------------------------
 Loss and
  comprehensive loss
  for the year       $ (2,714,936) $  3,093,770  $(22,302,095) $(12,344,133)
 Items not affecting
  Depreciation of
   property and
   equipment              971,446       640,432     3,368,165     2,142,633
  Amortization of
   intangible assets       88,745       284,191       335,428     1,150,626
   compensation           686,187       395,306     2,543,984     1,316,683
  Imputed interest
   on convertible
   debentures                   -       112,335       169,056       433,292
   adjustment            (444,995)   (3,389,066)   15,015,472     8,558,323
  Write-down of
   equipment                    -             -        25,488             -
  Write-down of
   inventory                    -             -        31,285        57,540
  Gain on investment            -             -       (25,000)      (25,000)
                    ---------------------------- ---------------------------
                       (1,413,553)    1,136,968      (838,217)    1,289,964
 Changes in non-cash
  working capital
  Increase in
   receivable          (2,632,136)   (1,160,376)   (4,445,141)   (2,038,172)
   decrease in
   inventories           (165,104)      161,195    (2,163,403)     (604,700)
   (increase) in
   prepaid expenses
   and other assets       109,296         3,658        (9,315)       55,149
   (decrease) in
   accounts payable     2,465,369    (1,059,141)    3,670,558       839,696
   increase in
   deferred revenue      (439,956)      262,083      (216,240)      263,336
                    ---------------------------- ---------------------------
 Net change in non-
  cash working
  capital balances
  related to
  operations             (662,531)   (1,792,581)   (3,163,541)   (1,484,691)

  Decrease in long-
   term deferred
   revenue               (342,228)     (316,902)   (1,300,000)   (1,325,602)
                    ---------------------------- ---------------------------
Cash used in
 activities            (2,418,312)     (972,515)   (5,301,758)   (1,520,329)
                    ---------------------------- ---------------------------

 Purchase of
  property and
  equipment            (1,958,312)   (1,592,361)   (6,424,498)   (6,511,829)
 Purchase of
  intangible assets       (39,853)            -    (2,517,267)            -
 Disposal of
  property and
  equipment               161,403       185,666       387,673       275,521
 Redemption of long-
  term investment               -             -        25,000        25,000
                    ---------------------------- ---------------------------
Cash used in
 activities            (1,836,762)   (1,406,695)   (8,529,092)   (6,211,308)
                    ---------------------------- ---------------------------

 Proceeds from
  issuance of common
  shares              104,687,500             -   162,544,000    40,336,250
 Transaction costs
  paid relating to
  issuance of common
  shares               (5,044,103)            -    (8,225,673)   (3,389,352)
  assistance              (49,389)      (53,726)     (203,507)     (191,068)
 Proceeds from
  exercise of
  options                  85,677        10,209     2,484,553        87,492
 Proceeds from
  exercise of
  warrants                      -       202,895       621,912       202,895
                    ---------------------------- ---------------------------
Cash provided by
 activities            99,679,685       159,378   157,221,285    37,046,217
                    ---------------------------- ---------------------------

Net increase in cash
 and cash
 equivalents           95,424,611    (2,219,832)  143,390,435    29,314,580
Net foreign exchange
 difference                (8,437)       (4,011)      (14,834)        5,993
Cash and cash
 equivalents at
 beginning of year     86,913,608    41,178,024    38,954,181     9,633,608
                    ---------------------------- ---------------------------

Cash and cash
 equivalents at end
 of year             $182,329,782  $ 38,954,181  $182,329,782  $ 38,954,181
                    ---------------------------- ---------------------------
                    ---------------------------- ---------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Continuous processes around the development and deployment of applications are both impacted by -- and a benefit to -- the Internet of Things trend. To help better understand the relationship between DevOps and a plethora of new end-devices and data please welcome Gary Gruver, consultant, author and a former IT executive who has led many large-scale IT transformation projects, and John Jeremiah, Technology Evangelist at Hewlett Packard Enterprise (HPE), on Twitter at @j_jeremiah. The discussion...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
PubNub has announced the release of BLOCKS, a set of customizable microservices that give developers a simple way to add code and deploy features for realtime apps.PubNub BLOCKS executes business logic directly on the data streaming through PubNub’s network without splitting it off to an intermediary server controlled by the customer. This revolutionary approach streamlines app development, reduces endpoint-to-endpoint latency, and allows apps to better leverage the enormous scalability of PubNu...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...