In the wake of the current credit crisis in the U.S. and a string of losses, digital x-ray developer AFP Imaging in Elmsford, NY, plans to hire an investment banker immediately to explore its options, including additional investment capital or a merger or acquisition by another company.
In its recent filing for fiscal 2008 (end-June 30), AFP Imaging noted that beginning in July, the company "has been adversely impacted by the acceleration in the deterioration of credit availability causing a decline in financeable sales for the company's products. Practitioners such as dentists, oral surgeons, imaging centers, veterinarians and others, who must finance their own capital equipment purchases, have recently hesitated to commit to lease, purchase or invest in high tech products."
The company went on to state in the report that it believes its current long-term financing, as well as its foreign lines of credit, "may not be sufficient to provide the required working capital to leverage its full potential and maximize all of the investments made to date."
AFP Imaging closed its fiscal 2008 with a 19% increase in sales to $34.3 million, compared with $28.7 million in fiscal 2007. The company also posted a net loss from continuing operations of $11 million, compared with a net loss of $4.7 million in fiscal 2007.
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