Imnet's backlog booms on strong order growth

Imnet's backlog booms on strong order growth

Imnet Systems last month reported financial results for its fourth quarter and fiscal 1997 (end-June) that showed strong revenue growth and a big jump in the company's backlog due to increased order volume. The Atlanta information systems company said it is seeing more orders through both its direct sales channels and its OEM partners, which include Cerner, HBO, HealthVision, IDX, and Phamis.

For the fourth quarter, Imnet posted revenues of $15.9 million, up 36% compared with sales of $11.6 million in the same period of 1996. The company's net profit for the most recent quarter was $3.3 million, compared with $3.4 million in the fourth quarter of 1996.

For the year, Imnet had revenues of $50.2 million, an increase of 71% compared with sales of $29.4 million in fiscal 1996. Imnet's earnings in 1997 were $9.6 million, not including a $2.6 million one-time charge, of which $1.4 million was related to a write-down of assets related to its MedVision product line. Imnet changed the direction of the MedVision program by signing an OEM agreement in March with ISG Technologies, which is providing PACS viewing software to Imnet to replace what was previously available with MedVision.

In addition to the revenue growth, Imnet's backlog skyrocketed in the fourth quarter on the strength of $26.9 million in new orders, a company record. Imnet reported a backlog at the end of the fourth quarter of $51 million, up 111% compared with $24.2 million at the end of 1996. The company tallied 27 new healthcare orders in the third and fourth quarters of 1997 and saw the first orders come in through its exclusive agreement with hospital chain Tenet Healthcare.