VitalWorks revenues drop

IT provider VitalWorks, which last year acquired PACS vendor Amicas, reported a drop in revenues for the fourth quarter ended Dec. 31, compared with both the immediately preceding quarter and the same period a year earlier. The company tallied $26.7 million, compared with $28.1 million in the preceding quarter (end Sept. 30) and $29 million for the quarter ending Dec. 31, 2002. VitalWorks had a net loss of $2 million for 4Q 2003, compared with net income of $4.1 million for the corresponding 2002 period. On the bright side, deferred revenues rose to $11.8 million as of Dec. 31 from $7.9 million on Sept. 30. Company executives predicted that PACS will drive growth in radiology IT for the next several years, and that the combination of Amicas' PACS and its own radiology products will provide an advantage in this market.