Charge for SRI case sinks ATL's results
It would have been a great quarter for ultrasound vendor AdvancedTechnology Laboratories. The Bothell, WA, company last week reportedthat revenues climbed 8% for the second quarter, while incometripled over the same period a year ago. Unfortunately,
It would have been a great quarter for ultrasound vendor AdvancedTechnology Laboratories. The Bothell, WA, company last week reportedthat revenues climbed 8% for the second quarter, while incometripled over the same period a year ago.
Unfortunately, ATL was forced to take a whopping $29.6 millionone-time charge in the quarter to pay for a damage award grantedto SRI International in connection with a patent infringementcase the company filed against ATL. A U.S. District Court judgein May assessed ATL $27.9 million in damages in connection withthe case (SCAN 6/5/96). ATL is pursuing an appeal of the decision.
The litigation charge wiped out what would have been a netprofit of $3.5 million. Instead, ATL wound up with a net lossfor the period of $19.2 million, compared with net income of $836,000in the second quarter of last year, when ATL took a one-time chargerelated to its consolidation of Interspec. ATL recorded an incometax benefit for the most recent quarter of $6 million.
ATL's revenues were a bright spot for the company, climbingto $98.6 million, compared with $91.3 million in the same periodof 1995. The company's gross margin improved to 48.4% from 46.6%due to an improved product mix and cost reduction programs.