ADAC Laboratories posted a 19% increase in revenues for its fourthquarter (end-October), the Milpitas, CA, company reported lastweek. Operating income was also higher, although net income wasaffected due to accounting changes related to the company's
ADAC Laboratories posted a 19% increase in revenues for its fourthquarter (end-October), the Milpitas, CA, company reported lastweek. Operating income was also higher, although net income wasaffected due to accounting changes related to the company's changein income-tax status.
ADAC's fourth-quarter revenues for the most recent period were$50.2 million, compared to $42.4 million in the same period of1994. Operating income increased 45% to $5.1 million, althoughyear-to-year net income comparisons are difficult because thevendor's net income in 1994 was impacted by one-time charges relatedto litigation with Elscint and credits due to an income tax benefit.
ADAC had net income of $2.8 million in the most recent quarter,compared to net income of $6.4 million in the same period lastyear. If last year's charges and credits were excluded and thevendor had been taxed in that quarter at this year's rate of 35%,ADAC would have had net income in 1994's fourth quarter of $2.2million. ADAC's tax rate changed from the low 20% range in 1994to 35% this year due to the expiration of tax credits relatedto losses the company experienced in the 1980s.
For the year, ADAC reported revenues of $184.8 million, up 5%compared to $176.3 million in sales in 1994. Net income for 1995was $11.1 million, compared to last year's net income of $17.5million. ADAC would have recorded net income for 1994 of $12.9million if tax credits and nonrecurring charges were excluded.
As previously reported, ADAC experienced a 33% gain in bookingsfor the quarter, to a company-record $64 million.
