Esaote reports flat half-year revenues

Esaote posted only modest growth for the first six months of its 1997 fiscal year. The Genoa, Italy-based medical imaging device company pointed to stagnant European sales as a prime factor for its 0.6% increase in revenues.

For the six-month period (end-June), revenues were $77.8 million (U.S.) compared with $77.3 million in the same period in 1996. Net income was $2.1 million, compared with $3.2 million last year.

While Italian sales experienced a healthy growth of 4.6%, other markets, particularly Russia and other European countries, were hit by stagnant demand due to healthcare cost-containment efforts, according to the vendor. Esaote did report strong performance from its Chinese subsidiary, Esaote China, which has been operating for only three months.

Esaote believes that 1997 is a year of consolidation and transition for the company, according to Carlo Castellano, chairman and CEO. The company is in the process of widening its R&D and marketing strategies, as well as its sales network and production capacity, in order to support the launch of new products, he said.

In the last two months, the company has released the AU5 Harmonic multidisciplinary ultrasound system (SCAN 9/17/97), the Archimed EKG networking offering, and the Artoscan M dedicated MRI scanner. Artoscan M is a more compact version of Esaote's Artoscan product.