Digirad Corp. (DRAD) Tops Q4 EPS by 3c; Guides FY15 EPS to Strong Side; Acquires MD Office Solutions

Digirad Corp. (NASDAQ: DRAD) reported Q4 EPS of $0.05, $0.03 better than the analyst estimate of $0.02. Revenue for the quarter came in at $14.1 million, versus $12.5 million reported last year.

Digirad Corp. sees FY2015 EPS of $0.19-$0.21, versus the consensus of $0.19. Digirad Corp. sees FY2015 revenue of $61-63 million.

Digirad also that it acquired MD Office Solutions, Inc. ("MD Office"), a mobile diagnostic imaging provider servicing customers in Northern California.

Digirad President and CEO Matthew G. Molchan commented, "As we have been discussing over the last year, one component of our growth strategy is to complete disciplined, tuck-in acquisitions within our core businesses. MD Office is a very well-run business providing the same mobile nuclear diagnostic imaging services as us. They are in a geographical region that we are not currently in, which fits squarely within our acquisition strategy. We are very excited to have the MD Office employees join the Digirad family, and we are excited to be in this new region and the growth opportunities it presents."

MD Office generated approximately $2.9 million in revenues in 2014. Once MD Office goes through a short integration period, it is expected to be accretive on an EBITDA basis, producing over $500,000 of EBITDA on an annual basis, assuming the same level of 2014 revenues.

Total upfront consideration issued at closing was 610,000 common shares of the Company. In addition, there is a cash earn-out opportunity of up to $400,000 over approximately three years based on meeting certain EBITDA targets. MD Office will continue to operate from its Northern California location. Further information is continued in a Form 8-K filed with the U.S. Securities and Exchange Commission.

For earnings history and earnings-related data on Digirad Corp. (DRAD) click here.

You May Also Be Interested In

• Safe & Green (SGBX) Provides Update on Audit and Planned 10-K Filing
• Vail Resorts (MTN) Reports Certain Ski Season Metrics for the Season-to-Date Period Ended April 14
• Norfolk Southern (NSC) corrects Ancora's false and misleading statements