ISG's revenues boom in 1996

PACS software developer ISG Technologies of Mississauga, Ontario,saw revenues skyrocket for fiscal 1996 and the first quarter of1997. ISG had delayed release of its 1996 results as it triedto calculate the expense of several extraordinary items.

For the year, ISG revenues were $28.8 million (Canadian),up 40% compared with $20.6 million in 1995. ISG's net loss narrowedto $900,000, compared with $2.7 million in 1995.

For the quarter, ISG's sales were $7.6 million, up 28% comparedwith $5.9 million in the first quarter of fiscal 1997. ISG hada net loss for the period, compared with a slight profit in thesame period last year.

ISG said it saw growth in its contract R&D business, PACSworkstation sales, and image-guided surgery revenues. ISGemphasizedits contract R&D business this year to maximize revenues,but said it would shift resources to its other businesses in fiscal1997 because those operations offer more potential for long-termgrowth.

Several one-time charges in fiscal 1996 and the first quarterof 1997 crimped the company's profits. ISG took a $1.7 millioncharge, part of which is related to a joint development projectin which one of the partners pulled out, and a restructuring chargeearlier in the year. ISG took a $700,000 charge in the first quarterrelating to the departure of several executives, one of whom wasformer president and CEO Thomas Cafarella, who is suing the companyfor wrongful termination (SCAN 9/25/96).