OEC reports third quarter financials
Production delays and merger costs contributed to a decrease in third quarter financial results for C-arm manufacturer OEC Medical Systems. The company saw revenues for the quarter (end-September) of $39 million, compared to $47.9 million in 1998, and a
Production delays and merger costs contributed to a decrease in third quarter financial results for C-arm manufacturer OEC Medical Systems. The company saw revenues for the quarter (end-September) of $39 million, compared to $47.9 million in 1998, and a net loss of $646,000, compared to net income of $4.3 million the year before. The Salt Lake City firm attributed the lower revenues to production delays for its Series 9800 line of digital mobile C-arms, introduced in June (SCAN 6/23/99). The series offers the only mobile C-arm available with a real-time 1K x 1K resolution, according to the company, and is designed for surgical applications that require advanced imaging capabilities.
Costs associated with the companys planned merger with GE Medical Systems also contributed to OECs loss for the quarter. In August, OEC signed an agreement to merge with GEMS (SCAN 9/18/99). The company expects the deal to close on Nov. 29, following a special shareholder meeting to be held in Chicago.
Despite its disappointing third quarter results, OEC is ahead in revenues for the fiscal year, with nine-month sales at $142.3 million, compared to $135 million for the same period in 1998, a 5% increase.