EndoSonics’ Q4 and year-end numbers healthy

Revenue for ultrasound imaging manufacturer EndoSonics was $48.2 million at the end of 1999, up from $44.1 million in 1998. Revenue for the fourth quarter, however, was only $11.7 million, compared with $13.3 million for the fourth quarter of the previous year. For the fourth quarter of 1999 the company reported a net loss of $1 million, compared to a net gain of $2.6 million in the fourth quarter of 1998.

The Rancho Cordova, CA-based company made significant gains through direct sales in the company’s two largest markets, the U.S. and Germany, said president and CEO Reinhard J. Warnking.

In the last half of the year, EndoSonics’ sales declined sharply—something analysts did not predict. For example, disappointing European sales contributed to lower than expected financial results in the third quarter of 1999. Because EndoSonics’ European distributor, Jomed International, did not sell products as briskly as had been anticipated, the company reported it would cancel one of two distribution agreements with Jomed (SCAN 10/13/99). This week EndoSonics announced that Jomed will continue acting as its distributor in smaller European markets, while other distributors will handle the business in Japan and some larger markets.

The company has entered into an alliance with North American Scientific, a leading developer of brachytherapy products, to develop the radiation source for EndoSonics’ intravascular ultrasound-guided radiation catheter (SCAN 1/19/00). EndoSonics hopes to file an application with the FDA for this device in the first half of this year.