Analogic shows Q3 downturn

Jun 9, 2004

Imaging equipment developer Analogic reported fiscal 2004 third-quarter revenues of $92 million, down 8% from the $100 million booked in the same quarter last year.

For the period (end-April 30), the Peabody, MA-based vendor had net income of $1.77 million, a 74% slide compared with net income of $6.85 million for the third quarter of fiscal 2003.

Revenues for the first three quarters were $262.48 million, a 33% decrease compared with the prior year's nine months' revenues of $389.49 million. Net income for the period was $7.26 million, an 85% tumble compared with $47.82 million for the same period a year ago.

The revenue and income decreases were expected due to extraordinary sales of Analogic’s explosives-assessment CT systems in the first quarter of last year, said president and CEO John Wood. The decline in security revenues was partially offset by 16% growth in the sales of medical imaging systems, including cardiac information management, digital radiography, and patient monitoring systems.

However, about a third of this growth was due to recognition of revenue deferred from previous years, the company said.

The firm said its operating expenses increased quarter-over-quarter ($100.6 million year-to-date, compared with $90.39 million for the same period in 2003) due in part to the establishment of its Anexa subsidiary in November 2003. The company also said that it continued to invest in research and development at a level well above its historical average.

Wood said that he believes Analogic will grow next calendar year with the introduction of several new complete medical CT and digital radiography systems. He also said that the company's security business would continue to fluctuate, but that the firm received an order for 40 additional explosives-detection CT systems during the quarter, the majority of which will be delivered during this calendar year.

By AuntMinnie.com staff writers
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