For 2013, IMRIS expects improved order bookings in the 2013 second half compared to the 2013 first half, with the strongest performance coming from the North American and the Asia-Pacific markets. Annual revenues, comprised of both systems and service, are expected to be in the range of $50 million. IMRIS's quarterly revenue profile varies depending on the underlying system installations in each period. The company expects 2013 third quarter revenues to be in the $18 million range. Similar to prior years, the company anticipates that the strongest quarterly revenue performance will occur in the second half the year.

Strong increases in gross profit are expected in 2013, including significantly higher gross profit as a percentage of sales, which is forecast to be in the range of 36 percent for the year. Quarterly gross profit as a percentage of sales will vary depending on the underlying system installations in the respective quarters.


Carefully managing expenses is a continuing priority in 2013, and cash operating expenses are targeted to decrease by $3 million from 2012 levels to approximately $35 million. Taken together, total cash and non-cash operating expenses in 2013 are expected to be approximately $53 million, as summarized in the table below:

2013 Forecast $ Millions
Cash operating expenses $ 35.0
Minneapolis relocation costs 4.0
Research & development charge 3.0
Total 42.0
Research & development charge (non-cash) 5.0
Depreciation (non-cash) 4.0
Stock based compensation (non-cash) 2.0
Total operating expenses 53.0

Cash requirements in 2013 include funding for operations, capital investments related to robotics, VISIUS iCT and MRgRT test labs, the costs related to the U.S. relocation and prepaid development costs associated with collaborative arrangements. Total capital expenditures for 2013 are expected to be in the range of $6 million to $8 million.

The company's full financial statements as well as management's discussion and analysis will be available at www.sedar.com, www.sec.gov and www.imris.com.

Board of Directors Announcement

In addition, the Board of Directors has elected Steven Armstrong, Executive Vice-President and CFO of Patterson Companies Inc. and Jay D. Miller, President and CEO of IMRIS Inc., to the Board effective August 14, 2013.

Mr. Armstrong joined Patterson, a $3.6 billion global dental products and services company, in 1999, which is publicly traded on the NASDAQ Exchange. Mr. Armstrong started his career at Ernst and Young LLP in 1973, and became an audit partner in his 26 year tenure at the firm serving primarily publicly traded national and multinational clients.

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