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Digrad sheds more hubs

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Poway-based Digirad Corp. (Nasdaq: DRAD) has sold off its service hubs in Arizona and Nevada to hone in on its core locations.

The company, which provides and leases medical equipment, announced Wednesday that it had sold the assets to Ohio-based Antigua Medical Services LLC.

The agreement calls for the sale of portable nuclear imaging cameras, vans and related equipment as well as the assignment of certain customer contracts.

Financial terms were not disclosed, although CEO Todd Clyde told analysts in a February conference call that he expected total hub sales to have a $7 million impact.

The company has already divested itself of locations in Northern California and in St. Louis in efforts to streamline operations.

Clyde was not immediately available for comment.

Digirad closed Wednesday at 94 cents. The stock has fallen more than 65 percent over the last year despite almost continued revenue growth. However, management does not expect the first quarter to be cash-flow positive as activity typically slows early in the year.

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