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Elscint starts feeling health-care heat
Israeli medical imagingvendor Elscint began to feel the imaging market downturn thisyear. The vendor had unusually strong results, relative to a depressedindustry, in 1993. But revenues declined 4% in the first quarterof 1994 (end-March), to $54.2
Israeli medical imagingvendor Elscint began to feel the imaging market downturn thisyear. The vendor had unusually strong results, relative to a depressedindustry, in 1993. But revenues declined 4% in the first quarterof 1994 (end-March), to $54.2 million from $56.9 million in thesame period last year. Quarterly net income dropped from $4.5million in 1993 to $3.1 million.
Elscint cited increasing worldwide cost-containment pressuresfor medical services as well as U.S. health-care reform uncertaintyas reasons for the performance decline. Bookings for the quarterwere less than expected, resulting in a 9% decrease in Elscint'sorder backlog, the company said.
Elscint may also have been affected by an apparent downturnthis year in the nuclear medicine camera business, which had beenrelatively healthy last year (SCAN 4/6/94). The vendor is initiatingcost-cutting measures in response to the slowing business, accordingto president and CEO Shmuel Parag.
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