A "difficult operating and economic environment" prompted a sharp decline in net income for medical imaging firm Analogic of Peabody, MA, in the company's first quarter of fiscal 2009 (end-October 31), even though revenue grew due to an acquisition earlier in calendar 2008.
For the period, Analogic posted revenue of $101.6 million for the year, up 8% compared with revenue of $94.2 million in the first quarter of fiscal 2008. The company reported net income of $320,000 in the most recent period, compared with $6.4 million in the corresponding quarter the year before.
The company said that sales of medical imaging systems were $52.9 million, up 14% over the prior year's quarter, mostly due to the inclusion of $19.6 million in revenue from its acquisition of MRI gradient amplifier manufacturer Copley Controls in April.
Shipments of CT subsystems to Analogic's OEM partners were down in the period due to the continuing softness of the CT market, particularly in the U.S., the company said. The company said that demand for CT could remain soft in the near term.
Analogic reported that sales in its digital radiography (DR) business were $7.5 million, up 53% over the previous year, reflecting shipments of amorphous selenium digital mammography detectors to Siemens Healthcare of Malvern, PA. The DR segment was profitable for the second quarter in a row, Analogic said. The company added that it expects DR sales to grow as it begins shipping to two other customers during the current fiscal year.
Sales in the company's BK Medical subsidiary were down 8% to $18.9 million, due largely to unfavorable exchange-rate changes. Analogic noted that BK launched its Pro Focus UltraView 2202 ultrasound scanner at last week's RSNA meeting, and the subsidiary is planning to launch another new system in 2009.
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Road to RSNA, Ultrasound, Analogic/BK Medical, November 5, 2008
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