iCAD to lay off 28% of workforce as part of restructuring plan
by Gus Iversen, Editor in Chief | March 31, 2023
Artificial Intelligence
Business Affairs
Women's Health
Mammography AI developer iCAD has issued a filing with the U.S. Securities and Exchange Commission saying it plans to reduce its workforce by 28%, or a total of 23 employees.
The filing, issued March 20, attributes the decision to a commitment to restructuring for long term strategic goals and reduced operating expenses. Most of the layoffs will occur in the company's detection business unit, as opposed to its therapy unit.
Xoft, an iCAD subsidiary, will also furlough 12 of its employees, or approximately 50% of its workforce, as part of the restructuring.
All told, iCAD estimates the layoffs will cost the company about 300,000 in the first half of 2023, consisting primarily of one-time severance and benefits payments, and employee-related transition costs.
On Tuesday, iCAD released its financial results for the fourth quarter of 2022, as well as the full year 2022. It noted total revenue for the fourth quarter of 2022 was $6.5 million, a decrease of $1.3 million, or 17%, as compared to the fourth quarter of 2021. It also reduced annualized expenses by $4.3 to $4.6 million and decreases annualized cash burn by $4.9 to $5.2 million.
The financial report also cited several strategic partnership agreements signed in Q4, positioning the company for growth.
In November, iCAD has announced a strategic development and commercialization agreement with Google Health to integrate Google’s AI technology for breast cancer and personalized risk assessment into iCAD's portfolio of breast imaging AI solutions. It also inked a deal with Solis Mammography to collaborate on use of AI to evaluate risk of cardiovascular disease, and entered another multiyear commercial agreement with Radiology Partners.
The filing, issued March 20, attributes the decision to a commitment to restructuring for long term strategic goals and reduced operating expenses. Most of the layoffs will occur in the company's detection business unit, as opposed to its therapy unit.
Xoft, an iCAD subsidiary, will also furlough 12 of its employees, or approximately 50% of its workforce, as part of the restructuring.
All told, iCAD estimates the layoffs will cost the company about 300,000 in the first half of 2023, consisting primarily of one-time severance and benefits payments, and employee-related transition costs.
On Tuesday, iCAD released its financial results for the fourth quarter of 2022, as well as the full year 2022. It noted total revenue for the fourth quarter of 2022 was $6.5 million, a decrease of $1.3 million, or 17%, as compared to the fourth quarter of 2021. It also reduced annualized expenses by $4.3 to $4.6 million and decreases annualized cash burn by $4.9 to $5.2 million.
The financial report also cited several strategic partnership agreements signed in Q4, positioning the company for growth.
In November, iCAD has announced a strategic development and commercialization agreement with Google Health to integrate Google’s AI technology for breast cancer and personalized risk assessment into iCAD's portfolio of breast imaging AI solutions. It also inked a deal with Solis Mammography to collaborate on use of AI to evaluate risk of cardiovascular disease, and entered another multiyear commercial agreement with Radiology Partners.
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