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

To: Gerald Thomas who wrote (2885)	9/23/1998 10:52:00 PM
From: Gerald Thomas	Read Replies (1) \| Respond to of 3448

Intermagnetics Expects Solid Improvement In 1st-Quarter Net, Revenue By Gaston F. Ceron, Staff Reporter 474 Words 3793 Characters 09/23/98 18:21 Dow Jones Online News (Copyright (c) 1998, Dow Jones & Company, Inc.) * NEW YORK -(Dow Jones)- Intermagnetics General Corp. said Wednesday it expects to show a sharp year-over-year increase in revenue and earnings Thursday morning, when it reports results for the latest quarter. Carl Rosner, chairman and chief executive of the Latham, N.Y.-based company, told Dow Jones he expects revenue for the first quarter of its fiscal year, ended Aug. 30, to rise 21% to about $26 million from $21.5 million during the year-earlier quarter. Net income is projected at * about $1 million, more than twice the $461,000 Intermagnetics earned year-ago quarter. Diluted earnings per share will be "very close" to seven cents, Rosner said, compared with four cents a year ago. The increase in net income won't translate directly to earnings per share because the company has more shares outstanding than it did a year ago. * Intermagnetics manufactures superconducting magnets, wire and cable, and low-temperature refrigeration equipment and radio-frequency coils. Its products include equipment used in magnetic resonance imaging, or MRI, systems and a refrigerant that replaces freon gas, which is banned from production in the U.S. and can't be imported. Rosner said most of the earnings and revenue improvement came from recent acquisitions, the continued streamlining of operations and what he said was a "resurgence in need by hospitals" for MRI equipment. The company received orders for "several dozen" systems, he said. The freon replacement, known as Frigc or R416a, hasn't been as successful as the company would like. This is partly because of competition from a rival alternative to freon, R134a. But Rosner thinks he has found an additional market for the product, which usually has been marketed for use in automobile air-conditioning systems. R416a now also is being sold for use in stationary cooling systems, such as air-conditioning systems in hotels, supermarkets and high-rise buildings. Rosner said the early indications are good, but he cautioned against expecting a dramatic turnaround overnight. Rosner said the company continues to have good hopes for the ultimate success of its MRI-based system for detecting spoilage in food products. * He said this product and R416a are Intermagnetics' "major opportunities over the next several years." * Looking ahead, Rosner said Intermagnetics could be poised for a fiscal year of record profits and revenue, if it is able to maintain its "relative insulation" from the financial instability seen in many parts around the world. * Intermagnetics' results won't compare as favorably with the fourth quarter of fiscal 1998 - when the company earned $885,000, or seven cents a diluted share, on $27.4 million in sales - as they will with the year-earlier quarter. Rosner explained that the fourth quarter is normally the busiest. "Typically, our first quarter is not our best quarter," he said. * Intermagnetics (IMG) shares closed Wednesday at $7.50, up $0.125, or 1.7%. -Gaston F. Ceron; 201-938-5166; gaston.ceron@cor.dowjones.com Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved. I0607 * End of document.