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MAGNA-LAB ANNOUNCES PROGRESS WITH NEW MRI PRODUCT; COMPANY RELEASES SECOND QUARTER RESULTS AND AGREEMENT TO PURCHASE MRI CONSOLES

 LONG ISLAND, N.Y., Oct. 13 /PRNewswire/ -- Magna-Lab Inc. (NASDAQ: MAGLU) a development stage medical technology company, today reported a loss, as expected, for the first six months and second fiscal quarter ended Aug. 31, 1993 as the company continues to achieve good progress in development of the Magna-SL, its low cost magnetic resonance imaging scanner.
 The company also announced that it intends to show the Magna-SL at the Radiology Society of North America Meeting (RSNA) in December, with the goal of having diagnostic quality images at that time.
 The net loss from these planned development activities totaled $1,030,232 or 51 cents a share for the three months, on 2,025,000 average shares outstanding. This compares with a year ago loss of $299,092, or 34 cents per share, on the 875,000 average shares then outstanding.
 In the first six months ended Aug. 31, 1993, Magna-Lab sustained a net loss from planned activities of $1,585,066, or 89 cents per share, with 1,780,800 average shares outstanding. During the same period in 1992, the company sustained a net loss of $631,108, or 72 cents per share, with 875,000 average shares outstanding.
 In August 1993, Magna-Lab made a $480,000, non-refundable payment under an agreement with an unaffiliated European supplier of MRI components (consoles). This agreement provides for purchases of consoles and the license of certain technology underlying the consoles. The purchase will result in an additional payment of $240,000 prior to the end of January 1994, leaving an unamortized deposit of $320,000 at such time. The remaining deposit will be amortized over the remaining consoles to be purchased, before Sept. 30, 1994, under the agreement. If the company does not purchase consoles beyond the initial consoles, such remaining deposit (or portion thereof) would be forfeited.
 Magna-Lab's initial public offering earlier this year produced net proceeds to the company of approximately $5,463,000 from the sale of 1.15 million units at $6 per unit. The company had net cash outflows from operating activities and capital expenditures of approximately $1.4 million and $2.4 million, respectively, in the three and six months ended Aug. 31, 1993. While the company reported approximately $3.1 million in cash and investments on its balance sheet as of Aug. 31, 1993, management continues to believe it will need to raise additional financing to continue its activities beyond 12 months following its initial public offering which was completed in April 1993.
 Magna-Lab Inc., headquartered in Long Island is the developer, manufacturer and marketer of the Magna-SL, designed to scan the extremities of the human body such as hands, elbows, knees, feet, and possibly head. This compact MRI system will be more affordable for doctors and patients than current full-body MRI systems. Magna-Lab's corporate goal is to bring MRI to more patients.
 MAGNA-LAB, INC.
 (A development stage company)
 Summary of Earnings
 Cumulative 2/10/92
 (Commencement Six Months Three Months
 of Operations) Ended Ended
 to 8/31/93 8/31/93 8/31/92 8/31/93 8/31/92
 Revenues --- --- --- --- ---
 Net loss $(3,113,580)$(1,585,066) $(631,108) $(1,030,232) $(299,092)
 Weighted avg.
 number of shares
 outst. --- 1,780,800 875,000 2,025,000 875,000
 Loss per share
 of common
 stock --- (.89) (.72) (.51) (.34)
 -0- 10/13/93
 /CONTACT: Joel M. Stutman, chief operating officer, 516-575-2111, or Andrew Lavin of Middleberg & Associates, 212-888-6610/


CO: Magna-Lab, Inc. ST: New York IN: MTC SU: ERN

LG-OS -- NY032 -- 1607 10/13/93 11:08 EDT
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Date:Oct 13, 1993
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