Lumisys reports flat revenues, although trend shows improvement

A continuing slump in film digitizer sales impacted third-quarter earnings for film digitizer firm Lumisys. Although sales did show signs of rebounding, the Sunnyvale, CA, company reported 2% revenue growth in its third quarter compared with the same period in 1996. Meanwhile, efforts to broaden the company's product offerings are continuing.

For its third quarter (end-September), Lumisys posted revenues of $6 million, compared with $5.9 million in 1996. Net income was $616,000, compared with $817,000 for the same period last year.

In positive news for Lumisys, backlog increased 47% to $4.6 million, a record high. In addition, the company has $1.3 million in equipment orders that are not included in the backlog figure, in which the company only includes orders up to six months ahead. Revenues also grew 14% compared with the second quarter.

While company officials believe the digitizer market to be in a growth phase again, they have taken steps to diversify the company's product offerings. In addition to the planned acquisition of PACS and teleradiology software supplier CompuRad (SCAN 10/1/97), Lumisys announced in April that it was developing a low-cost computed radiography reader for the medical market.

After the acquisition of CompuRad is finalized, some of that vendor's engineers will be working on the CR project. Tucson, AZ-based CompuRad will contribute a large portion of the graphical user interface as well as network transmission software to the project. The CR reader is on track to reach the market in late 1999, said Stephen Weiss, president and CEO.

Lumisys has also begun responding to the class-action lawsuit that was filed against the vendor in July by a group of shareholders upset with a decline in the firm's stock. The company filed a motion to dismiss the case in federal court on Sept. 21. A hearing on the motion is scheduled in December, with a response expected by January, Klosterman said. Lumisys also planned to file a similar motion in state court on Oct. 10.