Elscint's second-quarter results sag

August 31, 1994

Elscint's second-quarter results sag It was a case of good newsand bad news this month for Elscint Ltd., which reported financialresults for the second quarter (end-June). On one hand, the Israelivendor reported that sales of its CT Twin family of

Elscint's second-quarter results sag It was a case of good newsand bad news this month for Elscint Ltd., which reported financialresults for the second quarter (end-June). On one hand, the Israelivendor reported that sales of its CT Twin family of scanners werestronger than expected. On the other, overall revenues for thequarter dropped 9% due to the ongoing slump in nuclear medicinesales in North America.

Revenues for the second quarter of 1994 totaled $54.7 million,down from the $60.3 million recorded in the same period last year.Net income was down sharply, to $2.7 million from $7.2 millionin last year's second quarter, a drop of 63%.

Depressed market conditions in North America have caused intensecompetition and aggressive pricing, which have impacted margins,according Shmuel Parag, president and CEO of Haifa-based Elscint.The nuclear medicine market is down 25% in the first two quartersof 1994, according to data from the National Electrical ManufacturersAssociation, Parag said.

The company saw a 10% increase in the order backlog for itsCT-Twin family, however. CT scanner sales, as well as cost-cuttingmeasures Elscint has already implemented, should improve the company'sresults beginning in the fourth quarter of this year.