A significant decline in Analogic's security-imaging system sales led to a 13% decline in revenue in its 2006 fiscal first quarter, while the Peabody, MA-based company also swung to a net loss.
For the period (end-October 31), Analogic had revenues of $75.6 million, down from the $86.4 million posted a year ago. Analogic had a net loss of $5.4 million, compared with earnings of $1.3 million in the first quarter of 2005. During the first quarter of 2006, Analogic recorded $9.7 million in pretax asset-impairment charges associated with its digital radiography (DR) systems business.
While the DR business improved slightly, it continued to perform well below earlier expectations, according to CEO John Wood. Therefore, Analogic performed an in-depth review of the business and decided to record the asset-impairment charges, Wood said.
In positive developments, Analogic's core OEM medical technology products business produced $67.8 million in product sales, up 11% compared with the previous year's first quarter. Revenues were up in clinical ultrasound systems and subsystems, CT data acquisition systems, and CT systems, while MRI power systems were slightly down, Analogic said.
By AuntMinnie.com staff writers
December 11, 2006
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