Syncor sees jump in operating income

Radiopharmaceutical firm Syncor International had reason to celebrate this month when it posted a dramatic increase in operating income for third quarter 1999 (end-September). The Woodland Hills, CA, firm’s operating income climbed 48% during the quarter, to $8.3 million from $5.6 million the year before. Net sales increased by 15% to $131.5 million, up from $114 million in 1998. The company reported net income of $3.2 million, compared with $2.7 million for the same period the previous year. Included in Syncor’s results was a nonoperating write-down of $1.8 million linked to the company’s 1997 investment in Perimunne, a biotechnology company.

The company attributed its strong performance to increased market demand for pharmacy services, as well as sales revenue and acquisitions in its medical imaging business. For the quarter, Syncor’s radiopharmacy gross margin increased by $4.3 million to comprise 27% of the company’s sales. Its medical imaging business, which operates under a subsidiary, Comprehensive Medical Imaging, posted sales of $15.7 million for the quarter, compared to $11 million in 1998. Comprehensive Medical Imaging acquired four imaging centers in Southern and Central California during the quarter.