Mammography firm Fischer Imaging of Denver yesterday released preliminary second-quarter financial results showing a substantial drop in operating revenue. There is a silver lining, however, as the company will record a windfall in the quarter (end-June 30) due to its favorable settlement of patent litigation with Trex Medical.
Not counting the Trex settlement or related licensing revenues, Fischer’s second-quarter revenue was $8.8 million, down 31% compared with $12.8 million in sales recorded in the same period a year ago. Fischer did not cite a reason for the decline.
In addition to revenue from product sales during the quarter, Fischer received $25 million in settlement proceeds from Thermo Electron, which owned Trex during much of the 1990s until selling the company in 2000 to Hologic of Bedford, MA. Fischer and Trex had dueled for years over patents relating to breast-biopsy technology sold by both firms. Fischer is now pursuing litigation against Hologic for allegedly infringing on its breast-biopsy patents.
The Trex settlement totaled $32.2 million, and Fischer said it will recognize the proceeds over the original patent life of 17 years. The company will record a one-time other income item of $19.2 million in the second quarter of 2002, and future license revenue of $1.9 million a year through 2009.
Fischer said it was unable to release final second-quarter numbers because its new auditor, Ernst & Young, has been unable to adequately review work performed by Fischer’s previous auditor, Arthur Andersen. Fischer said it could not predict when its second-quarter results would be available, and warned that its revenue and income statements could be subject to revision.
Fischer may also incur restructuring charges related to the reorganization of its radiography, specialty x-ray, and electrophysiology businesses.
By Auntminnie.com staff writersAugust 29, 2002
Related Reading
Fischer Imaging delays Q2 reporting, August 15, 2002
Fischer settles litigation, June 11, 2002
Knudson named Fischer CEO, April 19, 2002
Fischer net income rises despite revenue decline, February 13, 2002
Fischer files European patent infringement suit against Hologic, December 13, 2001
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