Revenues at MRI vendor Fonar plunged in fiscal-year 2006 and the company dove into the red as MRI sales dropped.
For the year, (end-June 30), the company reported sales of $33.1 million, compared with $104.9 million in fiscal 2005. The Melville, NY company posted a net loss of $29.9 million for the year, compared with net income of $1 million in fiscal 2005.
Fonar attributed the results to a drop in MRI sales, less revenues from the sale of its physical therapy and rehabilitation businesses, and continued investment in development of its proprietary MRI technology.
Revenues in the company's MRI segment declined to $11.1 million, compared with $73.1 million in the previous fiscal year. There was a hike in service and repair revenues in fiscal year 2006 to $8.6 million, up from $5.8 million in the prior year.
By AuntMinnie.com staff writers
September 15, 2006
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