Healthcare services spark Fonar sales

March 3, 1999

It’s becoming a familiar refrain whenever MRI developer Fonar reports financial results: sales are up, but the revenue is coming from growth in healthcare services, not scanner sales. Last month was no exception, with the Melville, NY, company

It’s becoming a familiar refrain whenever MRI developer Fonar reports financial results: sales are up, but the revenue is coming from growth in healthcare services, not scanner sales. Last month was no exception, with the Melville, NY, company reporting a 34% increase in second-quarter revenues at the same time that its scanner business remained in the doldrums.

For the period (end-December), Fonar reported sales of $9.1 million, compared with revenues of $6.8 million in the same period of 1998. The company’s net loss for the quarter was $2.5 million, compared with a net loss of $2.1 million in the second quarter of fiscal 1998.

Health Management Corporation of America, Fonar’s physician practice management subsidiary, was the engine behind the company’s revenue growth. Meanwhile, sales of Fonar’s Quad products amounted to only $602,000 for the quarter, compared with $1 million in the same period a year ago. Fonar believes that its new scanners, such as Open Sky MRI and Stand-Up MRI, will lead to sales growth when they begin shipping.