ADAC sees sharp 1999 net income decline

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.