Imaging software provider Vital Images reported fourth-quarter revenues of $5.2 million, down 16.1% compared with the $6.2 million posted a year ago.
For 2003, however, Vital Images had total revenue of $26.8 million, up 27% compared with the $21.1 million in 2002. The firm had 2003 net income of $8.1 million (including a net tax benefit of $6.5 million), compared with net income of $790,000 booked in 2002.
President and CEO Jay Miller attributed the fourth-quarter sales slowdown to external and internal factors, including sluggishness in CT scanner purchases, the growing evolution of the 3-D imaging software market to a PACS-based sector, competitive programs, and inefficiencies in the firm’s sales and marketing execution. The company said it has upgraded a number of sales and marketing processes, including communications, training, account management, and forecasting; it will also focus on keeping current with its sales staffing plan.
Looking ahead, Vital Images said it expects first-quarter 2004 total revenue to be between $6.5 million to $7.5 million, with a net loss of $900,000 to $1.3 million. The net loss includes estimated amortization costs of $200,000 and a write-off of in-process R&D costs of approximately $1 million related to its planned acquisition of HInnovation.
In 2004, Miller said the company expects flat growth in the CT and MR markets, with continued positive growth in the PACS sector. As such, the firm is revising its guidance for 2004 revenue growth to 25% to 35%.
By AuntMinnie.com staff writersFebruary 11, 2004
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Vital Images shows Q3 gains, October 21, 2003
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