Lumisys to debut low-cost CR reader

X-ray film digitizer firm Lumisys announced that it will begin developing a low-cost computed radiography reader for the medical market. Because a key patent held by CR market leader Fuji expires in 1998, the Sunnyvale, CA-based company believes it can enter the CR market without fear of infringing on Fuji's patents.

Although Lumisys would not release many details, project development will begin in the second quarter of 1997 and is expected to take two years. The medical CR reader will employ technology developed for a CR reader that Lumisys has been selling into the nondestructive test market since 1996.

Lumisys revealed the product development plans during a teleconference with industry analysts to discuss its 1997 first-quarter results (end-March). Lumisys posted revenue of $5.8 million, an increase of 14% over the same period in 1996, when Lumisys had sales of $5.1 million.

Now reporting earnings on a fully taxed basis, Lumisys netted normalized income of $788,000 in the first quarter, a 57% gain over normalized earnings from the first quarter of 1996. Earnings per share, however, were slightly below some analysts' expectations, which led to a drop in the company's stock. Lumisys shares closed at $5.88 on April 23, a 52-week low.