Profits boom at Intermagnetics General

January 23, 2002

Philips' rising market share in MR and the growth of new MR applications are helping drive incremental revenue growth for Intermagnetics General. The company is an exclusive supplier of superconducting magnets to Philips, as well as a developer of MRI

Philips' rising market share in MR and the growth of new MR applications are helping drive incremental revenue growth for Intermagnetics General. The company is an exclusive supplier of superconducting magnets to Philips, as well as a developer of MRI surface coils to multiple OEMs and end users. Second quarter results, released Jan. 8, indicate a 16% rise in earnings for the company (excluding one-time items that netted a substantial gain) to $3.6 million from $3.1 million a year earlier and a net sales increase of 20% to $39 million from $32.4 million. Sales of magnet systems and radio-frequency coils substantially increased due to continued strong demand from MR scanners, offsetting softer results in the company's instrumentation business.

On Jan. 8 the company announced the signing of a definitive agreement to sell the helium-related portion of its subsidiary IGC-APD Cryogenics' business for about $10 million. The sale to Sumitomo Heavy Industries (SHI) of Japan includes all helium-related assets and liabilities. The deal is expected to close in February 2002. The mixed-gas portion of APD Cryogenics' refrigeration systems business, currently conducted at APD's Allentown, PA, facility, will be integrated into IGC-Polycold Systems' new facility in Petaluma, CA. SHI and Intermagnetics also announced a strategic six-year supply agreement under which Intermagnetics will purchase shield coolers used in the production of its MRI magnet systems. Intermagnetics currently purchases all of its shield coolers from either SHI or APD.