NASHUA, N.H., Aug. 13, 2024 (GLOBE NEWSWIRE) -- iCAD, Inc. (NASDAQ:ICAD) ("iCAD" or the "Company") a global leader on a mission to create a world where cancer can't hide by providing clinically proven AI-powered breast health solutions, today reported its financial and operating results for the three and six months ended June 30, 2024.  Second Quarter 2024 Highlights (Year over Year Performance): Total ARR was $9.2 million, up 7% Total revenues were $5.0 million, up 21% Gross Profit Margin was 84%, up from 81% GAAP Net loss from continuing operations ($1.7) million, improvement from ($2.3 million) "The second quarter of 2024 was highlighted by strong revenue growth of 21%, which demonstrates the success of our strategic direction as we continue to drive consistent performance," said Dana Brown, President and CEO of iCAD, Inc. "In line with Phase 3 of our transformation plan, this quarter we continued to maximize revenue from our sizeable install base, upgrading customers to new versions including the transition to Cloud, and accelerated deployment across large, national accounts. In the second quarter, we closed 60 perpetual, 29 subscription, and 10 cloud deals with both new and established customers. We believe our efforts to reduce expenses and grow sales are yielding results." "This was our first full quarter offering our ProFound Cloud SaaS platform, and the offering has been received better than expected by both existing and new customers. We believe this solution not only empowers customers but should also create a more predictable and robust economic model for the business over time as it grows as a percentage of revenue." The chart below illustrates the growth of ARR (Annual Recurring Revenue) between the first quarter of 2022, when subscription sales first began, and the second quarter of 2024: ARR Change Since Start of Subscription Sales   (in 000's)                     Q1 22   Q2 24   $ Change   Maintenance Services ARR (M-ARR) $ 6,655   $ 6,910   $ 256   Subscription ARR (S-ARR)   0     2,030     2,030   Cloud ARR (C-ARR)   0     218     218   Total ARR (T-ARR) $ 6,655   $ 9,159   $ 2,504                       % Change Since Start of Subscription Sales           38 % Three Months Ended June 30, 2024 Financial Results Total revenue for the second quarter of 2024 was $5.0 million, an increase of $0.9 million, or 21%, as compared to the second quarter of 2023. (in 000's) Three months ended June 30,   2024   2023   $ Change     % Change   Product revenue $ 3,254   $ 2,301   $ 953     41.4 % Service and supplies revenue   1,775     1,870     (95 )   -5.1 % Total revenue $ 5,029   $ 4,171   $ 858     20.6 % Gross Profit: Gross profit for the second quarter of 2024 was $4.2 million, or 84% of revenue, as compared to $3.4 million, or 81% of revenue, in the second quarter of 2023. Operating Expenses: Total operating expenses for the second quarter of 2024 were $6.2 million, a 4% increase from $5.9 million in the second quarter of 2023. GAAP Net Loss from continuing operations: Net loss from continuing operations for the second quarter of 2024 was ($1.7) million, or ($0.07) per diluted share, as compared to a net loss of ($2.3) million, or ($0.09) per diluted share, for the second quarter of 2023. Non-GAAP Adjusted Net Loss from continuing operations: Non-GAAP Adjusted Net Loss from continuing operations, a non-GAAP financial measure as defined below, for the second quarter of 2024 was ($1.6) million, or ($0.07) per diluted share, as compared to a Non-GAAP Adjusted Net Loss of ($2.2) million, or ($0.09) per diluted share, for the second quarter of 2023. Please refer to the section entitled "Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures" and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss results for the three-month periods ended June 30, 2024 and 2023, respectively.  Non-GAAP Adjusted EBITDA: Non-GAAP Adjusted EBITDA, a non-GAAP financial measure as defined below, for the second quarter of 2024 was a loss of ($1.2) million compared to a loss of $(2.1) million in the second quarter of 2023. Please refer to the section entitled "Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures" and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA results for the three-month periods ended June 30, 2024 and 2023, respectively.   Six Months Ended June 30, 2024 Financial Results Total revenue for the six months ended June 30, 2024 was approximately $10.0 million, an increase of approximately $1.5 million, or 17%, as compared to the six months ended June 30, 2023. (in 000's) Six months ended June 30,   2024   2023   $ Change     % Change   Product revenue $ 6,356   $ 4,762   $ 1,594     33.5 % Service and supplies revenue   3,627     3,744     (117 )   -3.1 % Total revenue $ 9,983   $ 8,506   $ 1,477     17.4 % Gross Profit: Gross profit for the six months ended June 30, 2024 was $8.3 million, or 83% of revenue, as compared to $6.9 million, or 82% of revenue, in the six months ended June 30, 2023. Operating Expenses: Total operating expenses for the six months ended June 30, 2024 were $11.7 million, an 8% decrease from $12.7 million in the six months ended June 30, 2023. GAAP Net Loss from continuing operations: Net loss from continuing operations for the six months ended June 30, 2024 was ($2.9) million, or ($0.11) per diluted share, as compared to a net loss of ($5.5) million, or ($0.22) per diluted share, for the six months ended June 30, 2023. Non-GAAP Adjusted Net Loss from continuing operations: Non-GAAP Adjusted Net Loss from continuing operations, a non-GAAP financial measure as defined below, for the six months ended June 30, 2024 was ($2.8) million, or ($0.11) per diluted share, as compared to a Non-GAAP Adjusted Net Loss of ($5.3) million, or ($0.21) per diluted share, for the six months ended June 30, 2023. Please refer to the section entitled "Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures" and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss results for the six-month periods ended June 30, 2024 and 2023, respectively. Non-GAAP Adjusted EBITDA: Non-GAAP Adjusted EBITDA, a non-GAAP financial measure as defined below, for the six months ended June 30, 2024 was a loss of ($2.3) million compared to a loss of $(4.6) million in the six months ended June 30, 2023. Please refer to the section entitled "Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures" and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA results for the six-month periods ended June 30, 2024 and 2023, respectively.   Cash and cash equivalents:  Cash and cash equivalents were $20.4 million as of June 30, 2024. iCAD believes it has sufficient cash resources to fund its planned operations with no need to raise additional funding. Conference Call:   The company will host a conference call at 4:30 PM Eastern Time on Tuesday, August 13, 2024.   Toll Free: 888-506-0062 International: 973-528-0011 Participant Access Code: 227167  Webcast: https://www.webcaster4.com/Webcast/Page/2879/50989  Use of Non-GAAP Financial Measures In its quarterly news releases, conference calls, slide presentations or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measures most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. When analyzing the Company's operating performance, investors should not consider these non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with GAAP. The Company's quarterly news releases containing such non-GAAP reconciliations can be found on the Investors section of the Company's website at www.icadmed.com About iCAD, Inc.iCAD, Inc. (NASDAQ:ICAD) is a global leader on a mission to create a world where cancer can't hide by providing clinically proven AI-powered solutions that enable medical providers to accurately and reliably detect cancer earlier and improve patient outcomes. Headquartered in Nashua, N.H., iCAD's industry-leading ProFound Breast Health Suite provides AI-powered mammography analysis for breast cancer detection, density assessment and risk evaluation. Used by thousands of providers serving millions of patients, ProFound is available in over 50 countries. In the last five years alone, iCAD estimates reading more than 40 million mammograms worldwide, with nearly 30% being tomosynthesis.  For more information, including the latest in regulatory clearances, please visit www.icadmed.com. Forward-Looking StatementsCertain 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 expansion of access to the Company's products, improvement of performance, acceleration of adoption, expected benefits of ProFound AI®, the benefits of the Company's products, and 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 that may cause the actual results, performance, or achievements of the Company to be materially different from any future 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 business and strategic objectives, the willingness of patients to undergo mammography screening, whether mammography screening will be treated as an essential procedure, whether ProFound AI will improve reading efficiency, improve specificity and sensitivity, reduce false positives and otherwise prove to be more beneficial for patients and clinicians, the impact of supply and manufacturing constraints or difficulties on our ability to fulfill our orders, uncertainty of future sales levels, to defend itself in litigation matters, protection of patents and other proprietary rights, product market acceptance, possible technological obsolescence of products, increased competition, 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. CONTACTSMedia inquiries: Investor Inquiries: John Nesbett/Rosalyn ChristianIMS Investor Relations iCAD, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except for share data)(Unaudited)     June 30,     December 31,     2024     2023   Assets               Current assets:               Cash and cash equivalents $ 20,353     $ 21,670   Trade accounts receivable, net of allowance for credit losses of $298 and $277 as of June 30, 2024 and December 31, 2023, respectively   5,383       6,392   Inventory, net   702       917   Prepaid expenses and other current assets   1,377       699   Total current assets $ 27,815     $ 29,678   Property and equipment, net of accumulated depreciation of $1,298 and $1,045 as of June 30, 2024 and December 31, 2023, respectively   1,776       1,823   Operating lease assets   470       461   Other assets   493       849   Intangible assets, net of accumulated amortization of $8,527 and $8,488 as of June 30, 2024 and December 31, 2023, respectively   121       148   Goodwill   8,362       8,362   Deferred tax assets   86       97   Total assets $ 39,123     $ 41,418   Liabilities and Stockholders' Equity               Current liabilities:               Accounts payable $ 488     $ 712   Accrued and other expenses   2,691       2,448   Lease payable—current portion   220       188   Deferred revenue—current portion   3,317