ADAC revenues boom in third quarter
ADAC Laboratories saw revenues and net income rise sharply forits third quarter (end-June). The Milpitas, CA, vendor attributedthe growth to several factors, including the addition of revenuesfrom information systems vendor Community Health Computing,
ADAC Laboratories saw revenues and net income rise sharply forits third quarter (end-June). The Milpitas, CA, vendor attributedthe growth to several factors, including the addition of revenuesfrom information systems vendor Community Health Computing, acquiredlast year, and increased sales of both gamma cameras and informationsystems.
For the quarter, ADAC posted sales of $62.4 million, up 37%from revenues of $45.6 million in the third quarter of 1995. ADACCFO Andre Simone said much of the growth was due to higher gammacamera sales related to the company's molecular coincidence detection(MCD) high-energy imaging technique. Gamma camera purchasers wantto acquire ADAC cameras so they can add MCD when it begins shipping,Simone said. ADAC plans to begin shipping the technology on completionof clinical trials designed to validate the technique.
ADAC's revenue increase was also due to the addition of revenuesfrom CHC, which were not included in ADAC's third-quarter resultslast year. ADAC has been successful in growing sales in that businessas well, Simone said.
Net income was another bright spot for ADAC. The company hadnet income of $4.4 million for the quarter, compared with $3.1million in the same period last year.
In other news, ADAC announced that it has been awarded a two-yearcontract as a preferred provider for the Columbia/HCA hospitalchain, joining GE Medical Systems as the only other preferredvendor for gamma cameras.