CTI Molecular Imaging reported fiscal fourth-quarter net revenues of $129.6 million, up 7.5% compared to the $120.6 million turned in during the same period in 2003. For the quarter (end-September 30), the Knoxville, TN-based vendor posted net income of $9.4 million, a strong gain compared to net income of $5.2 million in the fourth quarter last year.
For the fiscal year, net revenues were $401.7 million, a 10.9% increase from net revenues of $362.3 million in 2003. Net income for 2004 was $18.6 million, down slightly from the $20.6 million in net income recognized in 2003.
The company's growth in the fiscal fourth quarter was accomplished while maintaining a disciplined cost structure, with gross margins of 39% and operating margins of over 20%, according to CTI president and CEO Ronald Nutt, Ph.D. During the fourth quarter, on a consolidated basis, CTI sold 48 scanners, it said. For the year, the firm said it sold 152 scanners.
The CTI Solutions segment experienced significantly improved financial performance and achieved positive income from operations for the first time in two years. Contributing to this improvement was strong sales of FDG during the quarter. For the fourth quarter, sales of FDG doses increased 45% over the prior year's quarter and 7% sequentially, partially offset by a 3% sequential decline in average price.
The financial results for the fourth quarter were adversely impacted by an arbitration settlement of a dispute with a former supplier, the company said. The arbitrator ruled in favor of the former supplier, and as a result, CTI took a one-time, pretax charge of $4.2 million in its Detector Materials business unit during the fourth quarter for settlement payments owed to the former supplier.
The firm said it now expects scanner sales of approximately 175 units for fiscal 2005, reflecting a stable U.S. market and escalating growth in international shipments. CTI anticipates 2005 net revenues in the range of approximately $420 million to $430 million. For the first quarter of 2005, a traditionally slow quarter for the developer, the company said it expects revenue of approximately $90 million.
By AuntMinnie.com staff writers
November 16, 2004
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