The COVID-19 outbreak prompted a sharp decline in scan volume at imaging centers operated by Fonar in the third quarter of fiscal 2020. As a result, the company posted a revenue decline of 5% for the period.
For the period (end-March 31), Fonar had revenues of $21.7 million, compared with revenues of $22.8 million in the same period of fiscal 2019. The company's net income for the most recent quarter was $1.9 million, compared with net income of $5.2 million in the corresponding quarter the year before.
Fonar noted that the COVID-19 outbreak prompted a drop in scan volumes at its Health Management Company of America subsidiary, which operates 25 imaging centers and is Fonar's primary source of income and growth.
Fonar said that it expects to see growth return once businesses return to normal in the states of New York and Florida, where most of the company's centers are based. The company further noted that it has a strong balance sheet, with little debt and cash and cash equivalents of $31 million.