Imaging Dynamics Company Reports 2006 Results

For the fourth quarter, the Company reported a loss of $0.07 per share before one-time write downs, on revenues of $12,533, 867 and a loss of $0.19 per share after write downs.

Commenting on the results of 2006, Darryl Stein, President & CEO of IDC said, "In 2006, the Company focused its efforts on top line sales growth, market share capture and channel development. Significant investments were made in new products, new geographies and new markets. These investments added over 50 new channel partners globally and growth through new products into the veterinary and chiropractic markets. IDC has invested into building a global distribution network, and a broad array of products to meet the growing demand for digital technology.

The Company has experienced exceptional growth over the last two years - revenues growing by over 550% in that period - with a strategy that has taken more time, money and resources than was anticipated, negatively affecting the Company's financial performance with respect to expenses and write downs.

The introduction of new products to displace earlier models equated to a higher rate of inventory obsolescence than in the past, and an increased learning curve for the Company's technical personnel and integration efforts.

The focus in 2007 is to reap the benefits of investments made in 2006. The Company's operations and infrastructure are being revamped to more effectively support the sales engine we have created. We started restructuring the operations of the Company in late Q3 of 2006. New management and staff were hired; new processes and new tools are being implemented, including the implementation of a new Enterprise Resource Planning (ERP) system. In January 2007 the financial modules were implemented, and the testing and validation of the manufacturing, inventory, purchase order and sales order modules has been completed and will go live during April 2007. This provides full financial and operational connectivity with a direct impact on the efficiencies and profitability of the organization.

The internal restructuring and implementation efforts have been arduous but essential to the long-term health of the business. We made a deliberate decision to give the Company time to complete implementing all of the restructuring efforts and as such revenues booked for Q1 will be soft, but for all the right reasons. I am confident that within 60 days IDC will not only be positioned, but capable of delivering on the significant opportunities ahead of us." -- www.cnxmarketlink.com