Revenues Rise 51% as FONAR Reports Second Fiscal Quarter; First HMCA-Managed Stand-Up MRI Is Positive Impact To Bottom Line.Business Editors/Health/Medical Writers MELVILLE, N.Y.--(BUSINESS WIRE)--Feb. 13, 2003 FONAR Corporation (NASDAQ-FONR), The MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. Specialist(TM), reported today that revenues increased 51% during the first six months of fiscal 2003 ending December 31, 2002, as compared to the same period one year earlier. Six month revenues were $30.0 million for the first six months of fiscal 2003 as compared to $19.9 million for the first six months of fiscal 2002. The net loss was $5.6 million, or $0.08 basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net loss per share for the first six months of fiscal 2003, a 34% improvement over the same period in the previous fiscal year, which showed a net loss of $8.6 million, or $0.14 basic and diluted net loss per share. During the first six months of fiscal 2003, the Company improved its gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. on product sales (cost of goods sold/gross profit) to 35% from 24% for the same period a year earlier. The Company's gross profit margin on product sales increased as a result of greater efficiencies realized as a result of increased sales volume and production levels. Cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has were $10.6 million as of December 31, 2002 as compared to $13.1 million at June 30, 2002. Dr. Damadian, president and chairman of FONAR, said, "We are very pleased with the 51% overall increase in revenues for FONAR which is due to a large increase of Stand-Up stand·up or stand-up adj. 1. Standing erect; upright: a standup collar. 2. Taken, done, or used while standing: a standup supper; a standup bar. (TM) MRI installations. Given the market acceptance of this new FONAR product, we believe that revenues will continue this pace of growth."
Total Revenues Chart for the past 10 quarters
Quarter Revenues
-------- -----------
Q1 F2001 $9,091,000
Q2 F2001 $9,946,000
Q3 F2001 $11,978,000
Q4 F2001 $11,258,000
Q1 F2002 $10,153,000
Q2 F2002 $9,766,000
Q3 F2002 $10,953,000
Q4 F2002 $13,807,000
Q1 F2003 $13,658,000
Q2 F2003 $16,348,000
"HMCA's six month operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $719,000 was primarily due to the closure of centers no longer profitable because of the age of their scanners. The Company plans to upgrade HMCA HMCA Her Majesty's Clockwork Army (band) operations with new Stand-Up(TM) MRI scanners at the remaining sites and at new sites. Included in HMCA's $719,000 operating loss is approximately $537,000 in operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from the management of its first Stand-Up(TM) MRI scanning center in Islandia, New York Islandia is a village in Suffolk County, New York, United States. The population was 3,057 at the 2000 census. The Village of Islandia is in the northern part of the Town of Islip. in the first six months of fiscal 2003; a second HMCA Stand-Up(TM) MRI began scanning 4 weeks ago; a third is installed and expected to commence operations within a few weeks and a lease for the property for a fourth HMCA Stand-Up(TM) MRI has been signed." HMCA currently manages 12 MRI centers and 10 physician practices. The HMCA managed-center in Islandia has a Stand-Up(TM) MRI purchased by Dr. Damadian using outside bank financing. It became operational in January 2002. It is FONAR's and HMCA's plan to replace old MRI equipment with new Stand-Up(TM) MRIs in many cases.
CONDENSED STATEMENT OF OPERATIONS
Three months ended
December 31,
2002 2001
----------- -----------
REVENUES $16,348,000 $ 9,766,000
NET LOSS $(2,921,000) $(4,710,000)
BASIC AND DILUTED
NET LOSS PER SHARE $(0.04) $(0.08)
Six months ended
December 31,
2002 2001
----------- -----------
REVENUES $30,006,000 $19,920,000
NET LOSS $(5,627,000) $(8,557,000)
BASIC AND DILUTED
NET LOSS PER SHARE $(0.08) $(0.14)
Be sure to visit FONAR's Web site for Company product and investor information: www.fonar.com This release may include forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. from the company that may or may not materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. . Additional information on factors that could potentially affect the company's financial results may be found in the company's filings with the Securities and Exchange Commission. |
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