MRI specialist Fonar records 60% drop in revenue
11 November 2005
Melville, New York, USA. MRI scanner manufacturer FONAR Corporation,
reported revenues of $10.2m for the first quarter of fiscal 2006 (ending 30
Sept), compared to $25.1m for the same period of fiscal 2005.
Overall revenues attributable to product sales were $4.2 million in the
first quarter, a decrease from $17.7 million in the comparable period of
fiscal 2005. The drop follows a buoyant 2005, which saw a 46% increase in
revenue to $104.9m, a 70% increase in sales to $73.1m and an 80% increase in
unit deliveries, driven largely by the launch of the upright MRI, which the
company called the most important development in the MRI industry for years.
The lower level of revenue for the first quarter of fiscal year 2006 is
attributable to a slow down in capital equipment purchases by customers
following the high demand for upright MRI sales in mid-to late fiscal 2005.
Net loss for the first three months of fiscal 2006 was $8.3 million. The
loss reflects the lower level of revenue. and termination costs associated
with the sale of the physical therapy and rehabilitation facility management
business of HMCA, Fonar’s physician and diagnostic services management