FONR: Background info:
Magnetic resonance imaging pioneer FONAR brought its
first MRI scanner to market in 1980, and today it makes, sells, and
services its QUAD series, featuring "open" MRIs with high field
strength. The series, with unit prices of $700,000 to $900,000, is
marketed by distributors and at trade shows. FONAR's foreign
markets include Korea, Mexico, and Poland. Subsidiary U.S. Health
Management provides management and administrative services, office
space, equipment, repair and maintenance of equipment, and
personnel to physicians and diagnostic centers. FONAR manages 21
medical sites, mostly in New York and Florida; this business
segment accounts for nearly half of the firm's revenues.
%% Products & buz:
- QUAD 7000's (open scanner)
- QUAD 12000 (only high-field Open MRI on the market as of Nov 97)
- OR-360 or MRI operating Room is being developed (announced nov 97)
- does not seem to be anything else ?
- U.S. Health Management Corporation (HMC), a physician practice management company
HMC will provide
management services, administrative services, office space, equipment,
repair and maintenance service and clerical and other non-medical personnel
to physicians and other medical providers, including diagnostic imaging
(10K)
60m shares
New strategy based on licensing their technology (they are the pioneer in the MRI buz) + Management service (which has a great potential IMO)
Announced their Q this morning also: Sales +56%, -6c/share EPS, improving margin:
FONAR CORPORATION
110 Marcus Dr. Melville, New York 11742-4292
Phone: 516/694-2929; Fax: 516/249-3734
FOR RELEASE: Immediately
CONTACT: David Terry
PHONE: (919) 847-9535
FAX: (919) 676-8629
E-MAIL investor@fonar.com; FonarDT@aol.com
FONAR REPORTS 59% INCREASE IN REVENUE;
NEW SUBSIDIARY CONTINUES GROWTH
MELVILLE, NEW YORK, May 19, 1998 FONAR Corporation (NASDAQ:FONR) reported revenues for the
nine months ending March 31, 1998 of $20.7 million,
up 59% from the $13.0 million reported for the nine
months ended March 31, 1997. The Company reported a
net loss of approximately $8.0 million and an
operating loss of $10.9 million for the nine months
ending March 31, 1998, reflecting a 22% improvement
over the operating loss of $14.0 million for the
nine months ending March 31, 1997.
FONAR?s new physician practice management (PPM)
subsidiary, U.S. Health Management Corporation
(HMC), sustained its dynamic growth in more than
doubling its revenues over the prior year. In
addition, the PPM?s operating income for the nine
months ending March 31, 1997, was $3.0 million on
$14.9 million in revenues (before merger-related
expenses and amortization of goodwill) compared to
an operating income of $1.1 million on $7.2 million
in revenues for the nine months ending March 31,
1997.
Tim Damadian, President and CEO of HMC, stated, ?I
am very pleased with our 100% increase in revenue,
as well as nearly doubling our operating income. We
continue to exceed the goals of our business plan.?
Dr. Damadian, President and Chairman of FONAR
stated, ?An examination of this quarterly report
indicates a positive trend in both earnings and
especially revenues. The Company?s commitment to
R&D remains priority one. The improved revenues
underscore the clear benefit being derived from the
synergy of FONAR and HMC.?
CONDENSED STATEMENT OF OPERATIONS
Three Months
Ending March 31, 1998 1997
Revenues $7,136,000 $4,442,000 (1)(2)
Net Income (Loss) $(3,669,000) $(5,565,000)
Net Income
Per Share (Loss) $(0.06) $(0.09)
Nine Months
Ending March 31, 1998 1997
Revenues $20,700,000 $13,048,000 (1)(2)
Net Income (Loss) $(7,990,000) $(4,138,000)
Net Income
Per Share (Loss) $(0.13) $(0.07)
(1)Statement of Operations for March 31, 1997. This
includes results of operations for Raymond V.
Damadian, M.D. MR Scanning Centers Management
Company and two related Florida companies (RVDC)
subsequently acquired by FONAR as of June 30, 1997
and are restated for prior fiscal periods for the
purpose of comparative financial statement
presentation.
(2) The numbers included in the March 31, 1997
original 10-Q have been adjusted to give effect to
the acquisition on RVDC.
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This release may include forward-looking statements from the company that may or may not materialize. Additional information on factors that could potentially affect the company?s financial results may be found in the company?s filings with the Securities and Exchange Commission.
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