Lunar sees first-quarter sales jump 36%
Bone densitometry firm Lunar reported sharply higher revenueslast week for its first quarter (end-September). The Madison,WI, company had sales of $12.4 million, up 36% compared to revenuesof $9.1 million in the same period last year. The company's net
Bone densitometry firm Lunar reported sharply higher revenueslast week for its first quarter (end-September). The Madison,WI, company had sales of $12.4 million, up 36% compared to revenuesof $9.1 million in the same period last year.
The company's net income took a hit due to the costs of litigationwith competitor Hologic, however. Lunar's net profit was $1.3million, down 15% compared to net income of $1.6 million in lastyear's first quarter. Lunar spent $773,000 in the quarter on legalcosts related to the litigation, which was settled last month(SCAN 10/11/95).
The strong revenue growth was due to increased sales of Lunar'sExpert and DPX x-ray bone densitometers, as well as sales of theArtoscan MRI scanner, according to president Dr. Richard Mazess.Lunar expects increased Expert shipments in upcoming quartersas component shortages ease and as U.S. physicians begin prescribingMerck's new Fosamax drug for treating osteoporosis.
Lunar's stock enjoyed a boost last week on news that Merck'slicensing agreement with competitor CompuMed might not be as lucrativefor CompuMed as was initially thought (SCAN 9/13/95). CompuMed'sstock dropped almost 50% when the company disclosed that the agreementincluded a royalty cap in the last two years of the contract.Shares of Lunar stock jumped 8% to $37 a share shortly after therevelation.