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 segment.

Link: www.fonar.com

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