ADAC sees revenues and net rise in 1996

Nuclear medicine vendor ADAC Laboratories enjoyed a healthy fiscal1996 (end-September), with both revenues and net income risingsharply on the strength of higher sales in its gamma camera andinformation systems businesses.

For the year, the Milpitas, CA, company posted revenues of$240.8 million, up 30% compared with $184.8 million in fiscal1995. The company had net income for the year of $16.6 million,compared with net income of $11.1 million in 1995.

For the fourth quarter, ADAC's revenues were a company record$64.9 million, up 29% compared with $50.2 million in the fourthquarter of 1995. Net income for the period was $4.8 million, comparedwith net income of $2.8 million in the fourth quarter of 1995.

In addition to growth in information systems product salesin fiscal 1996, ADAC said it saw strong demand for its MolecularCoincidence Detection program, with bookings growing from fiveunits in the third quarter to 22 units in the fourth. Bookingshit a record level of $74 million in the fourth quarter, adding$9 million to the company's backlog.

ADAC shareholders did not view the results kindly, however,instead looking beyond the positive numbers to focus on ADAC'sannouncement that it would suspend its quarterly dividend of 12¢a share. ADAC shares fell following the news and were tradingat $19.75 a share late last week.

ADAC CEO David Lowe said the company eliminated the dividendin order to allow the vendor to fund internal growth opportunitiesand to pursue acquisitions, both in the nuclear medicine and informationsystems fields.

ADAC made one of those acquisitions this month, when it announcedthat it will acquire radiation therapy planning software developerGeometrics for $3.9 million. Geometrics developed the softwarefor ADAC's Pinnacle3 3-D radiation oncology planning system.