Other headlines:Varian Medical reports upbeat quarteriCAD revenues rise, but loss widensDigirad revenues slipMerge profits rise
Healthcare revenues added only marginally to Siemens' bottom line in the second quarter, as the German conglomerate more than doubled its second quarter profit mostly on the sale of wind turbines. The company attributed healthcare gains primarily to a favorable currency exchange. Imaging and information technology recorded a worldwide revenue boost of 3% but a 1% decline in orders. Overall net profit leaped from about €1 billion ($1.3 billion) on a 5% rise in revenues to about €19 billion ($24.7 billion).
Growing demand for oncology systems and security/inspection products boosted second quarter revenues at Varian Medical Systems, but declining orders for x-ray products weighed down the company's financials. Varian reported a 7% bump in quarterly revenues to $554 million. Net orders rose 2% to $524 million. Backlog rose 12% to $1.9 billion. Net earnings from continuing operations rose to $0.64 per share versus $0.57 per share in the previous year's quarter.
Computer-aided detection specialist iCAD reported an 11.4% gain in revenues during the first quarter, raking in $7.2 million compared with $6.4 million in the year-earlier period. Revenue growth was not enough to offset costs, however, as the company reported a net loss of $999,000 compared with a net loss of $446,000 in 1Q 08. The company noted softening demand for CAD software accompanying the sale of digital mammography systems but said it remained optimistic for future sales, as only about half of the approximately 13,500 mammography systems in the U.S. had yet transitioned to digital technology. The company is also marketing CAD-based products for MR and CT, although these are in early stages of adoption.
Revenues at nuclear medicine provider Digirad fell to $17.7 million in the first quarter, compared with $18.3 million in the year-earlier period. The company eked out net income of $44,000, even after figuring in restructuring charges, compared with a net loss of $1.4 million in 1Q 08. The company blamed the general economic downturn for declining demand.
Net sales at Merge Healthcare totaled $15.3 million in the third quarter, up from $13.7 million in the year-earlier period, according to the PACS/IT vendor. Net income was $2.8 million compared with a net loss of $7.8 million in the first quarter of 2008.