Digirad Corp. lowers 2007 guidance

Alex Alexandrov | Jan 08, 2008 3:23pm EST | Comment

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Shares of Digirad Corp. (Nasdaq: DRAD) are sagging on news before the start of trading that the maker of medical imaging products for the detection of cardiovascular disease has cut its 2007 outlook.

The Poway, Calif.-based company announced that it projects revenue for the year ended Dec. 31 at about $74 million, which is below the range of between $74.5 million and $75.5 million forecasted on Oct. 25. Two analysts polled by Thomson Financial are calling for revenue of $74.8 million.

“The revenue shortfall was due primarily to greater-than-expected physician cancellations during the holidays and the radioisotope shortage experienced when the nuclear reactor in Canada was out of service for an extended period,” said CEO Mark Casner in a statement.

Digirad, which also provides in-office nuclear cardiology imaging services to physician practices and hospitals, reported that it expects to see a consolidated net loss of between $1.3 million and $1.5 million. The company had previously forecast that it will breakeven or post a net loss of up to $1 million. The numbers include stock-based compensation expenses.

The sole analyst covering the company could not be reached for comment.

“Although full-year 2007 results were clear improvements over the prior year, they were nevertheless below our previous expectations,” said Casner.

At 3:23 p.m. ET shares of Digirad Corp. (DRAD) had shed $0.53, or 15%, to $3.09. The 52-week low of $2.94 was set on Aug. 20, 2007, while the 52-week high of $4.88 was reached on Feb. 27, 2007.