A one-time charge of $10.3 million to settle a class-action shareholder suit contributed to a $4.5 million net loss for ADAC Laboratories in the first quarter of fiscal 2000 (end-January 2). ADAC didn't have much good news to report on the revenue front, either, with the Milpitas, CA, company's sales falling 4% compared to the same quarter last year.
ADAC posted revenues of $90.3 million for the first quarter of fiscal 2000, compared with $94.3 million for the first quarter of 1999. If it weren't for the settlement charge, ADAC would have posted net income of $2 million, compared with net income (before one-time charges) of $600,000 in the first quarter of fiscal 1999. ADAC announced earlier this month that it had reached an agreement to settle shareholder litigation stemming from the company's revenue recognition practices in previous years.
ADAC chairman and CEO Andrew Eckert said the company was pleased with its first-quarter results. The company's gross margins have improved to 35.6%, and it received 10 orders for its C-PET cameras in the quarter, Eckert said.
By AuntMinnie.com staff writersJanuary 28, 2000
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