Dutch multimodality vendor Philips Medical Systems reported 86% sales growth to $1.7 billion (U.S.) in the fourth quarter of 2001, as the firm cashed in on its recent acquisition spree. The company reported that 75% of the revenue gain was attributable to its acquisitions of ADAC Laboratories, Agilent's Healthcare Solutions Group, and Marconi Medical Systems.
However, the purchases also led to a loss for Philips’ medical systems division. The unit had a loss of $134.1 million in the fourth quarter, including special charges of $254.2 million (mostly for acquisition-related charges of Agilent HSG and Marconi). Also included in the special charges was a write-off of $47.9 million for in-process R&D. Excluding special charges and amortization of goodwill and other intangibles, Philips’ income from operations climbed from $147.2 million in the fourth quarter of 2000 to $189.9 million.
In other developments in the quarter, sales volume grew 17%, while prices dipped an average of 4%, according to the vendor. Sales were strongest in the division's MR and customer support operations. Order intake climbed 27%, with North America and Asia Pacific driving growth, according to Philips.
By AuntMinnie.com staff writersFebruary 11, 2002
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