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Technology Stocks : Intermagnetics (IMG) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Linzmeier who wrote (2846)	7/28/1998 11:08:00 PM
From: guy spector	Read Replies (3) \| Respond to of 3448

Dow Jones Newswires -- July 28, 1998 Intermagnetics Sees 4Q Net Income Up 20% Or More By Gaston F. Ceron NEW YORK (Dow Jones)--Intermagnetics General Corp. (IMG) expects to show improved revenue and earnings Wednesday, when it reports results for the fourth quarter of fiscal 1998 ended May 31. Chairman and Chief Executive Carl Rosner told Dow Jones Intermagnetics expects to report net income "at least 20% higher" than the $711,000 the company earned during the fourth quarter of fiscal 1997. Earnings per share will be "maybe a penny more" than the 6 cents a share reported a year ago, since the company has more shares outstanding. Revenue is expected to come in around $27 million, a 5% improvement over the $25.6 million reported for the year-ago period. Rosner said operating income should rise around 40%, an increase that didn't translate directly to the bottom line because of a higher provision for income taxes and write-offs from losses in investments. Rosner was satisfied with the company's performance, which he hopes will help usher in a period of higher growth and profitability. "We are actually very pleased, both with the quarter and with the year, in that it sort of represents a turnaround for us," he said. The Latham, N.Y., company, which was founded in 1971 as a spin-off from General Electric Co. (GE), manufactures superconducting magnets, wire and cable, and low-temperature refrigeration equipment and radio-frequency coils. Its products include a refrigerant, Frigc FR-12, to replace freon gas in automotive air-conditioning systems, and magnetic devices, including a magnetic resonance imaging, or MRI, system, which can be used for inspection and quality control in foods. The bulk of Intermagnetics' sales and earnings comes from the magnetic devices. Rosner said the nonfreon coolant has been held up by a number of factors, including a rival alternative to freon, known as R134A. He also said he thinks auto companies are pushing customers to use the freon that is still available. Freon is banned from production in the U.S. and can't be imported. Additionally, concerns had been floated in previous years about Frigc's safety, with some worrying that the product may be flammable. Rosner said he thinks these concerns have been laid to rest. Frigc, he said, has been found to be "absolutely nonflammable." Rosner still hopes Frigc will take off as more customers warm up to it. The product, he says, cools faster, better and more efficiently than any alternative. "We have some tremendous testimonials of how satisfied people are," Rosner said. Amex-listed Intermagnetics was unchanged at 8 9/16, on volume of 9,700 shares, compared with average daily volume of 26,900 shares. -Gaston F. Ceron; 201-938-5166 gaston.ceron@cor.dowjones.com Powered by Quote Agentr and News Agentr from Gari Software/IDD Information Services Copyright c 1998 Dow Jones & Company, Inc. All Rights Reserved.