Charge for SRI case sinks ATL's results

Article

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.

Newsletter

Stay at the forefront of radiology with the Diagnostic Imaging newsletter, delivering the latest news, clinical insights, and imaging advancements for today’s radiologists.

Recent Videos
SNMMI: Emerging PET Insights on Neuroinflammation with Progressive Apraxia of Speech (PAOS) and Parkinson-Plus Syndrome
Improving Access to Nuclear Imaging: An Interview with SNMMI President Jean-Luc C. Urbain, MD, PhD
SNMMI: 18F-Piflufolastat PSMA PET/CT Offers High PPV for Local PCa Recurrence Regardless of PSA Level
SNMMI: NIH Researcher Discusses Potential of 18F-Fluciclovine for Multiple Myeloma Detection
SNMMI: What Tau PET Findings May Reveal About Modifiable Factors for Alzheimer’s Disease
Emerging Insights on the Use of FES PET for Women with Lobular Breast Cancer
Can Generative AI Reinvent Radiology Reporting?: An Interview with Samir Abboud, MD
Mammography Study Reveals Over Sixfold Higher Risk of Advanced Cancer Presentation with Symptom-Detected Cancers
Combining Advances in Computed Tomography Angiography with AI to Enhance Preventive Care
Study: MRI-Based AI Enhances Detection of Seminal Vesicle Invasion in Prostate Cancer
Related Content
© 2025 MJH Life Sciences

All rights reserved.