ADAC buys more service companies
ADAC Laboratories of Milpitas, CA, moved to bolster its service expertise with the acquisition this month of two service-related companies. In the first deal, ADAC bought ONES Medical Services of Londonderry, NH, an independent service organization that
ADAC Laboratories of Milpitas, CA, moved to bolster its service expertise with the acquisition this month of two service-related companies. In the first deal, ADAC bought ONES Medical Services of Londonderry, NH, an independent service organization that specializes in maintaining and refurbishing nuclear medicine equipment. ONES had 1997 revenues of approximately $3.5 million and has over 300 customer accounts. The acquisition enhances ADAC's presence along the East Coast, according to the company.
CT Solutions of Fairfield, CA, provides maintenance and refurbishing services for CT scanners, a business segment ADAC entered with the acquisition of Southern Cats in October (SCAN 11/12/97). CT Solutions had revenues last year of $2.3 million.
In other news, ADAC last week released financial results that showed healthy growth in both revenues and net income for its first quarter of fiscal 1998 (end-December). The company posted revenues of $75.5 million, a 10% increase compared with sales of $68.4 million in the first quarter of 1997. ADAC's net profit was $6.3 million, compared with $5.1 million in the same period a year ago.
Although ADAC's RIS business reported a 116% growth in bookings for the quarter compared with the fourth quarter of 1997, the firm's work on the LabStat laboratory information system continues to be plagued by delays. ADAC said it would evaluate the LabStat operation, and would explore strategic alternatives that could include divesting the product line.