Imatron reports record Q2 revenuesas CT company ships five scanners

August 30, 1995

Vendor sends third ultrafast scanner to ChinaImatron set a company record in revenues for its second quarterof 1995 (end-June), the South San Francisco, CA, firm reportedthis month. Spurred by the shipment of five Ultrafast CT scannersand

Vendor sends third ultrafast scanner to China

Imatron set a company record in revenues for its second quarterof 1995 (end-June), the South San Francisco, CA, firm reportedthis month. Spurred by the shipment of five Ultrafast CT scannersand increased sales of spare parts, Imatron recorded revenuesof $11.4 million, an increase of 44% over the $7.9 million insales recorded in the same period last year. Net income for thequarter was $519,000, a jump of 16% over $447,000 in net profitin the second quarter of 1994.

For the year to date, Imatron has recorded revenues of $17million and net income of $2.8 million, compared to $13.8 millionand $1 million respectively last year to date. Imatron said thelarge increase in net income results primarily from the cancellationof a $4 million loan from Siemens as part of the restructuringof the CT marketing and development relationship between the companies(SCAN 4/12/95).

Imatron's second quarter was significant in that it saw thefirm ship its third Ultrafast CT scanner to China and open a HeartScanImaging clinic in Seattle, according to Lewis Meyer, Imatron presidentand CEO. Meyer expressed concern about accounting rules that donot allow Imatron to fully recognize sales revenue and gross marginassociated with sales to the HeartScan Imaging subsidiary, whichImatron believes will become its largest customer.

The Seattle system was sold to leasing firm Finova Capital,which in turn leased the scanner to HeartScan for a five-yearperiod. Therefore, profit on that sale and others structured ina similar manner will be recognized in quarterly installmentsover the term of the lease, according to accounting rules.

In other Imatron news, the company's Imatron Japan joint venturehas signed a deal for Japanese distribution of Heart Laser systemsmanufactured by PLC Systems of Milford, MA. Heart Laser uses lasertechnology to revascularize clogged cardiac arteries as an alternativeto angioplasty or cardiac bypass surgery.

Imatron Japan will be responsible for obtaining Japanese regulatoryapproval for Heart Laser systems before Dec. 31, 1997, and ifapproval is received by that date it will have exclusive rightsto sell the product in Japan for five years. Imatron Japan, ajoint venture between Imatron and two Japanese companies, alsoagreed to buy five Heart Lasers in 1995 for $5 million.