Imatron's 1995 results drop

March 27, 1996

Ultrafast CT developer Imatron last week reported a $2.4 millionnet loss and sharply lower revenues for 1995 (end-December), butstruck an optimistic stance due to promising clinical resultsbeing reported on its technology. The South San Francisco,

Ultrafast CT developer Imatron last week reported a $2.4 millionnet loss and sharply lower revenues for 1995 (end-December), butstruck an optimistic stance due to promising clinical resultsbeing reported on its technology. The South San Francisco, CA,vendor said that the lower results were due to increased expensesrelated to the start-up of its HeartScan Imaging subsidiary, aswell as delays in securing orders in the Far East.

Imatron reported revenues for the year of $26.7 million, downfrom $33.6 million in 1994. The company's $2.4 million net lossfor 1995 compares with net income of $2.3 million in 1994.

For the fourth quarter, Imatron posted a net loss of $2.2 millionon revenues of $7 million, compared with net income of $700,000on sales of $10.8 million in the fourth quarter of 1994.

Imatron said the loss was attributable to expenses relatedto the building of a national network of HeartScan Imaging centers,which will provide coronary artery disease (CAD) screening directlyto the public, using Imatron's ultrafast CT scanners. Imatronopened centers in Houston and Seattle last year and laid the groundworkfor new centers in Washington, DC, and Pittsburgh.

Scanner sales were negatively affected by problems securingletters of credit from foreign banks. Two orders to China havebeen delayed, and others put on hold, Imatron said.

On the positive side, the company has been receiving mediaattention based on clinical reports of the utility of its technologyin detecting early signs of CAD (SCAN3/13/96). Imatron believesthat these studies will lay the foundation for increased consumerdemand for ultrafast CT CAD screening to be provided by HeartScancenters.