SonoSite predicts lower second-half revenue

September 27, 2000

After a year that saw Bothell, WA-based SonoSite partner with ultrasound giant ATL and that saw the company’s flagship product, a handheld digital ultrasound system, purchased by the 19 member countries of NATO for battlefield use

After a year that saw Bothell, WA-based SonoSite partner with ultrasound giant ATL and that saw the company’s flagship product, a handheld digital ultrasound system, purchased by the 19 member countries of NATO for battlefield use (SCAN 4/12/00), SonoSite predicted its second-half revenue will not meet analysts’ expectations.

SonoSite blamed the slump on a physician strike in South Korea and on a hospital market capital freeze in Taiwan. The company said in a statement, however, that U.S. sales are expected to grow.

The 5-pound portable SonoSite 180 system was developed using licensed ATL technology, and part of the SonoSite system is manufactured by ATL, a Philips Medical System company. ATL Ultrasound is able to bundle sales of the handheld SonoSite 180 with its own ultrasound systems.

SonoSite and ATL Ultrasound signed an agreement in March of this year giving ATL exclusive rights to include SonoSite’s SonoHeart handheld echocardiology device with sales of its own HDI ultrasound systems and with cardiac catheterization systems from Philips Medical Systems.

The SonoHeart is to be launched this month at the Japanese Society of Cardiology meeting in Osaka. The SonoHeart agreement with ATL covers distribution of products in cardiology-related segments worldwide, with the exception of Japan. Distribution in Japan is covered under an agreement with Olympus Optical.