Novadaq (NVDQ)

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Novadaq Reports Second Quarter 2012 Financial Results

http://www.novadaq.com/content/novadaq-reports-second-quarter-2012-financial-results

Toronto, Ontario - August 2, 2012 -
Novadaq® Technologies Inc. (“Novadaq” or the “Company”) (NASDAQ: NVDQ, TSX: NDQ,), a developer of clinically-relevant fluorescence imaging solutions for use in surgical procedures, today announced financial results for its second quarter ended June 30, 2012. Unless otherwise indicated, all dollar amounts in this press release are expressed in United States (U.S.) dollars.

Novadaq reported total second quarter 2012 revenue of $5.4 million, up approximately 48% compared with $3.6 million for the second quarter of 2011. Second quarter of 2012 revenue growth was driven by continued adoption of SPY Elite® and FIREFLY procedures and higher SPY Elite and FIREFLY system sales.

Second quarter of 2012 recurring revenue for Novadaq’s SPY businesses increased 124% to $2.5 million from $1.1 million in the second quarter of 2011, and increased 18% sequentially from $2.1 million in the first quarter of 2012.

Second quarter of 2012 operating contribution (cash contributed by operating activities before changes in working capital) was $0.2 million compared with an operating burn of $0.9 million in the second quarter of 2011. During the second quarter, working capital consumed $1.3 million, and $1.7 million was invested, including $1.6 million to build the SPY Elite installed base.

Cash and cash equivalents were $41.6 million at June 30, 2012, reflecting an increase of $33.7 million, compared to the cash position as of March 31, 2012. In April, the Company raised $40.3 million by way of an underwritten equity offering (net proceeds approximately $36.9 million), issuing 7,015,000 shares at a price of $5.75 per share.

Novadaq shipped 130 imaging systems and approximately 4,000 SPY Elite and FIREFLY procedures kits during the second quarter of 2012. The combined installed base of SPY technology in the United States now exceeds 500 systems.

“We are seeing increased adoption in breast reconstruction and partial nephrectomy, our initial markets, as evidenced by the 18% sequential increase in recurring revenues”, commented Dr. Arun Menawat, Novadaq’s President and CEO. “At the same time, focus on our PINPOINT® endoscopic fluorescence imaging system is increasing. Novadaq plans to market PINPOINT directly, and expects that the product will be familiar to surgeons and hospitals because they are already using SPY technology through our existing installed base. With PINPOINT, the clinical and cost savings benefits of fluorescence imaging will be available to surgeons choosing to perform minimally invasive procedures, which is a large segment of the surgery market. We have started the process of building our sales and marketing team for PINPOINT, and recruitment into the PILLAR™ multi-center clinical study has begun.”

Conference Call
Novadaq is pleased to invite all interested parties to participate in a conference call today, Thursday, August 2, 2012, at 4:30 p.m. Eastern Time during which the results will be discussed.
Novadaq Reports Second Quarter 2012 Financial Results

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 September 2, 2012 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 account number 286 and the conference identification number 393085 when prompted.

The call will be archived for 90 days on the Company’s website at http://www.novadaq.com 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.