Shareholders of nuclear medicine vendor ADAC Laboratories received a shock late last month when the company announced that it will restate its financial results for the last three years. The news prompted a major selloff in ADAC shares and triggered a
Shareholders of nuclear medicine vendor ADAC Laboratories received a shock late last month when the company announced that it will restate its financial results for the last three years. The news prompted a major selloff in ADAC shares and triggered a flood of shareholder lawsuits filed against the Milpitas, CA, company.
ADAC has been a model of consistent revenue and earnings growth over the past four years, and its stock has risen accordingly. Some of those numbers, however, may have represented sales that were recognized inappropriately in the years 1996, 1997, and 1998, according to a review by ADAC's auditor, PricewaterhouseCoopers.
The decision to restate revenues came after ADAC's earnings report in November. Questions were raised regarding the company's accounting policies and practices, particularly with respect to one-time charges and expense and revenue recognition practices. The company plans to adjust the timing of some sales over the three-year period, moving revenues forward into adjacent future periods.
ADAC stressed that the restatement has nothing to do with the health of the company's business. ADAC has had record customer order volumes over the past two years, and the vendor believes that its competitive position will improve due to recently introduced new products, such as its Forte and V60 gamma cameras (SCAN 12/16/98).
That opinion didn't assuage Wall Street, however. On the day the news was announced, ADAC shares fell from $27.13 to $21.88, a drop of 19%. On Jan. 6, they were trading at $20.13. Smelling blood, at least seven law firms filed class-action shareholder suits against the company.
In other ADAC news, the company named Gary Burbach president of ADAC Medical Systems, where he will manage the company's nuclear medicine and CT refurbishing business. Burbach previously was general manager of the company's radiation therapy products unit.
What is the Best Use of AI in CT Lung Cancer Screening?
April 18th 2025In comparison to radiologist assessment, the use of AI to pre-screen patients with low-dose CT lung cancer screening provided a 12 percent reduction in mean interpretation time with a slight increase in specificity and a slight decrease in the recall rate, according to new research.
The Reading Room: Racial and Ethnic Minorities, Cancer Screenings, and COVID-19
November 3rd 2020In this podcast episode, Dr. Shalom Kalnicki, from Montefiore and Albert Einstein College of Medicine, discusses the disparities minority patients face with cancer screenings and what can be done to increase access during the pandemic.
Can CT-Based AI Radiomics Enhance Prediction of Recurrence-Free Survival for Non-Metastatic ccRCC?
April 14th 2025In comparison to a model based on clinicopathological risk factors, a CT radiomics-based machine learning model offered greater than a 10 percent higher AUC for predicting five-year recurrence-free survival in patients with non-metastatic clear cell renal cell carcinoma (ccRCC).
Could Lymph Node Distribution Patterns on CT Improve Staging for Colon Cancer?
April 11th 2025For patients with microsatellite instability-high colon cancer, distribution-based clinical lymph node staging (dCN) with computed tomography (CT) offered nearly double the accuracy rate of clinical lymph node staging in a recent study.