Lunar dips into red in third quarter

Bone densitometry manufacturer Lunar of Madison, WI, fell into the red for its third quarter of fiscal 1999 (end-March), despite posting an increase in revenues. The company said that lower profit margins from an increase in dealer sales, a $1 million charge for doubtful accounts in financially troubled Brazil, and higher sales and marketing expenses conspired to produce the loss.

For the quarter, Lunar recorded sales of $19.7 million, up 10% compared with $18 million in the same period a year ago. The company’s third-quarter net loss was $825,000, compared with net income of $692,000 in the third quarter of 1998. Lunar received $2.7 million in orders for its new E-Scan extremity MRI scanner during the quarter, but was not able to recognize revenue from the systems, due to shipping delays at E-Scan’s manufacturer, Esaote of Genoa, Italy.