ADAC sees sharp 1999 net income decline

November 24, 1999

Nuclear medicine vendor ADAC Laboratories reported mixed results this month when it posted its fiscal 1999 and fourth quarter (end-October) results. After more than a year of financial problems that included restating its revenues for the past three

Nuclear medicine vendor ADAC Laboratories reported mixed results this month when it posted its fiscal 1999 and fourth quarter (end-October) results. After more than a year of financial problems that included restating its revenues for the past three years (SCAN 12/16/98), the Milpitas, CA, company rebounded somewhat to show healthy sales increases for the period, posting revenues of $342.1 million for the year, a 14% climb from 1998’s $300.5 million. For the fourth quarter, however, ADAC’s revenues dipped from $88.8 million in 1998 to $84.8 million.

During fiscal 1999, ADAC reported restructuring charges of $4 million, a research and development charge of $1.4 million, and other non-ordinary charges and expenses of $29.7 million. With the charges, ADAC posted a net loss for the year of $33.6 million; without the charges, the company posted a net loss of $6.6 million. In comparison, ADAC recorded net income of $7.4 million in fiscal 1998. Net income for the fourth quarter was $600,000, compared with net income of $4.1 million in the same period last year.