Elscint's financial results for 1997 showed a slight profit as the Israeli company suffered from lower sales and tighter profit margins. Elscint was also affected by the devaluation of European currencies and its share of the net loss posted by its ELGEMS nuclear medicine joint venture with GE Medical Systems of Milwaukee.
For the year (end-December), Elscint recorded revenues of $303 million, down 3% compared with $311.4 million the year before. The Haifa company had a year-end profit of $709,000, compared with net income of $8.1 million the previous year. In the fourth quarter, Elscint had a net loss of $1 million on revenues of $80.4 million, compared with a net profit of $1.5 million on sales of $85.3 million in the fourth quarter of 1996.
Elscint cut expenses through 1997, and in the fourth quarter implemented a restructuring plan designed to cut additional costs and make the company more responsive to customers (SCAN 11/12/97). Elscint should begin to see the impact of that plan in 1998, although the effort adversely affected the company's fourth-quarter 1997 results, according to president and CEO Jonathan Adereth.
In other news, Elscint tapped a new CFO, naming Gaby Yankovitz to the position. Yankovitz replaces Yuval Yanai, who is leaving Elscint.