Lunar warns of lower Q2 earnings

Bone densitometry manufacturer Lunar issued a profit warning on Jan. 14, notifying investors that its financial results for the second fiscal quarter (end-December) will be below analysts’ expectations. The Madison, WI, firm said that U.S. sales have been below the company’s targets, and that the firm’s new Prodigy fan-beam densitometer has not had a chance to impact the company’s results. Lunar introduced Prodigy at the RSNA conference last month (see story, page 3).

Lunar expects to report revenues of $23.4 million, an increase of 8% compared with $21.6 million in the same period a year ago. Net income swooned, however: Lunar expects to post a profit of $730,000, compared with net income of $2.7 million in the second quarter of 1998. The news prompted investors to sell Lunar’s stock, and shares of the company were trading at $9.13 on Jan. 15, a drop of 12%.