GE payment lifts Fonar results

Article

Fonar's ship finally came in this month when the Melville, NY, company released fourth-quarter and year-end financial results that show the impact of the firm's victory over GE Medical Systems in MRI patent litigation. Fonar reported net income of $56.1

Fonar's ship finally came in this month when the Melville, NY, company released fourth-quarter and year-end financial results that show the impact of the firm's victory over GE Medical Systems in MRI patent litigation. Fonar reported net income of $56.1 million for the year, and the formerly cash-strapped company now has a working capital surplus of $62.7 million.

GE paid Fonar $128.7 million in July for the judgment, of which Fonar kept $77.2 million. The rest of the money went for lawyer's fees and related expenses. The U.S. Supreme Court declined to hear GE's appeal of the case earlier this month (SCAN 10/15/97).

The $56.1 million net income figure compares with a net loss of $11.4 million for fiscal 1996. Fonar posted 1997 revenues of $17.6 million, up 27% compared with sales of $13.9 million the year before. The company's backlog as of Sept. 1 was $6.4 million, compared with $6.8 million at the same time in 1996.

Fonar said it will use its new-found cash to pursue new MRI applications, such as MR-guided surgery and MR mammography. In addition, Fonar has expanded into the physician practice management business through its U.S. Health Management subsidiary. Some of the cash will also be spent on a stock repurchasing effort that Fonar began this month.

Recent Videos
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
What New Research Reveals About the Impact of AI and DBT Screening: An Interview with Manisha Bahl, MD
Related Content
© 2025 MJH Life Sciences

All rights reserved.