Profits soared in the last quarter, but shares of Mercury Computer, which has carved out a comfortable niche as a supplier of digital components to radiology OEMs, tumbled on news that the future will not be so bright. About 71% of company revenues come
Profits soared in the last quarter, but shares of Mercury Computer, which has carved out a comfortable niche as a supplier of digital components to radiology OEMs, tumbled on news that the future will not be so bright. About 71% of company revenues come from defense electronics. Medical imaging accounts for about 17%. Revenues for defense products leaped in the last quarter, reported April 17, but looking to the future, orders are down across the board. Medical imaging has been hit particularly hard, with sagging results in the third quarter, ended March 31. Revenues for medical imaging were down 43% compared with the prior year's 3Q performance of $14.3 million. For the first nine months of fiscal 2003, medical imaging revenues were $28.4 million, compared with $34.8 million for the same period of fiscal 2002. The drop was due to continued reductions in CT-related revenues as customers introduce CT models that do not contain the Mercury products. Mercury shipments of CT components are expected to cease altogether by the end of the fourth quarter.
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