Imaging firms post Q1 earnings drop

Medical imaging device companies saw first-quarter 1997 earnings decline 13% compared with the first quarter of 1996, even though revenues jumped 15%, according to a first-quarter analysis from WDI Capital Markets of Hilton Head, SC, and KPMG Peat Marwick's Health Ventures practice.

Several vendors performed particularly well in the first quarter, including Acuson, ADAC Laboratories, Hologic, OEC Medical, and Trex Medical. Acuson reported record quarterly revenues of $107.6 million with adjusted net earnings of $5.8 million. Nuclear medicine vendor ADAC posted its 10th straight quarter of increases in both revenue and operating profits, with a 20% increase in revenue to $70 million. Adjusted earnings were $5.6 million, which represented a 41% increase.

Hologic saw its quarterly revenues jump 26% to $28 million, with adjusted earnings up 36% to $4.7 million. OEC Medical reported a 23% increase in first-quarter revenues to $32 million, with a 27% increase in adjusted earnings to $2.3 million. Trex Medical posted particularly strong financial results, with a 71% increase in revenue to $58.6 million. Adjusted earnings were $3.4 million, a 60% increase.

The first-quarter 1997 analysis will be included in WDI and KPMG's annual healthcare industry report, which reviews the five-year financial performance of more than 800 public healthcare companies in 35 market segments. Overall, the healthcare industry experienced growth in earnings and revenues of 11% and 15%, respectively.