MRI vendor Fonar posted a gain in net total revenue but took a hit in net income in the second quarter of fiscal year 2019.
For the quarter (end-December 31, 2018), revenues rose 5% to $21.2 million, compared with $20.2 million in the second quarter of 2018. Net income slipped by 7% to $4.9 million, compared with net income of $5.2 million in the same quarter of 2018. The decrease was due to a re-evaluation of the need for a deferred tax valuation allowance and requirement to record a full tax provision.
For the six-month period, net total revenues increased 6% to $41.9 million, compared with $39.5 million in the same period of 2018. Net income decreased 5% to $9.4 million, compared with $9.8 million in the same period of the last fiscal year. Fonar again blamed the reduced profit on its re-evaluation of $2.3 million for the deferred tax valuation allowance and requirement to record a full tax provision for the six months, ending December 31, compared with an $800,000 allowance in the same period of 2018.
