Sec Form 4 Filing - Jackson Armando @ DIGIRAD CORP - 2011-08-01

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL OMB Number: 3235-0287 Expires: November 30, 2011 Estimated average burden hours per response... 0.5

1. Name and Address of Reporting Person Jackson Armando 2. Issuer Name and Ticker or Trading Symbol DIGIRAD CORP [ DRAD] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) SVP of Product Sales (Last) (First) (Middle) 13950 STOWE DRIVE 3. Date of Earliest Transaction (MM/DD/YY) 08/01/2011 (Street) POWAY, CA92064-8803 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Option (right to buy) $ 2.83 08/01/2011 A 50,000 ( 1 ) 08/01/2018 Common Stock 50,000 $ 0 50,000 D Restricted Stock Units ( 2 ) 08/01/2011 A 25,000 ( 3 ) 08/01/2015 Common Stock 25,000 $ 0 25,000 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Jackson Armando 13950 STOWE DRIVE POWAY, CA92064-8803 SVP of Product Sales Signatures Laura S. Kwartler, by Power of Attorney 08/03/2011 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Twenty five percent (25%) of the shares subject to the option shall vest and become exercisable on the first anniversary of the vesting commencement date, with a vesting commencement date of August 1, 2011, and thereafter, one thirty-sixth (1/36th) of the remaining seventy five percent (75%) of the shares subject to the option shall vest and become exercisable each month, until all the shares are vested and exercisable on the fourth (4th) anniversary of the vesting commencement date, subject to the reporting person continuing to be provide service through each such date. ( 2 )Each restricted stock unit represents a contingent right to receive one share of Digirad common stock. ( 3 )Twenty five percent (25%) of the restricted stock units (RSUs) subject to the award shall vest and become payable on the one (1) year anniversary of the date of grant, and thereafter, one twelfth (1/12th) of the remaining RSUs subject to the award shall vest and become payable on the first day of each calendar quarter following the one (1) year anniversary of the date of grant until the RSUs are completely vested and payable, but not later than the fourth (4th) anniversary of the date of grant, subject to the reporting person continiuing to be a service provider through each such date.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.