Printer Friendly

DIAGNOSTEK SECOND QUARTER FISCAL 1994 RESULTS

 ALBUQUERQUE, N.M., Oct. 14 /PRNewswire/ -- Diagnostek, Inc. (NYSE: DXK) today announced its financial results for their second quarter fiscal 1994 ended Sept. 30, 1993.
 Net earnings totaled $2.9 million, or $0.12 per share, compared with a net loss of ($0.9) million, or ($0.04) per share, reported last year. Revenues totaled $98.6 million and were slightly higher than the comparable period last year. The net earnings increase of $3.8 million was due mainly to improved operating margins in the company's mail pharmacy service segment coupled with a lack of counterpart to prior year expenses associated with aborted merger activities and non- recurring bad debt provisions.
 Net earnings also increased 15 percent, or $0.01 per share, from the net earnings of $2.5 million, or $0.11 per share, reported for Diagnostek's first quarter due to mainly to improved product margins and gains on sales of marketable securities.
 Net earnings increased 180 percent for the six months and totaled $5.4 million, or $0.23 per share, $3.5 million higher than the net earnings of $1.9 million, or $0.08 per share, reported for last year. Revenues for the six-month period ended Sept. 30, 1993 totaled $195.5 million, an increase of $14.8 million or 8 percent from prior year. The net earnings increase was attributable mainly to improved operating margins and lack of a counterpart to prior year expenses associated with aborted merger activities and bad debt provisions. 1993 net earnings included higher than customary gains on sales of marketable securities, which offset increased sales and marketing expenses associated primarily with the introduction of the company's new RxChoice(c) and CapRX(c) products.
 Commenting on the results, Nunzio P. DeSantis, Diagnostek's chairman and chief executive officer noted that "The company continues to have marked success in expanding our client base and scope of product offerings. Our new relationship to market RxChoice(c) to the two million participates served by FIRST HEALTH Strategies, Inc. and the ten million participants insured by AFLAC (American Family Life Assurance Company of Columbus) demonstrate our commitment to develop programs that meet the clinical and cost-effective needs for our customers." Mr. DeSantis also noted the July 1993 decision by the Commonwealth of Massachusetts to engage the company to manage pharmacy operations at its 23 facilities as another key step in transitioning Diagnostek into a fully-integrated pharmacy benefit management supplier.
 Revenues of Diagnostek's mail pharmacy service business, Health Care Services, Inc. (HCS), for the quarter and six-month period ended Sept. 30, 1993 were $58.2 million and $116.0 million, respectively, approximately equal to last year amounts. HCS operating income totaled $4.1 million and $7.2 million for the quarter and six-month periods, respectively, an increase of about $5.0 million and $5.6 million versus year ago periods. HCS operating income improvement was due mainly to improved product margins and a lack of counterpart to prior year non- recurring bad debt provisions. HCS dispensed more than 1.5 million mail prescriptions during the fiscal first half, approximately equal to last year's volume, despite the impact associated with the loss of a major client which occurred during December 1992.
 Diagnostek's contract pharmacy service business, HPI Health Care Services, Inc. (HPI), reported second quarter and six-month revenues of $38.1 million and $74.8 million respectively; an increase of approximately 11 percent and 28 percent, respectively, over comparable prior year periods. HPI's operating income totaled $1.5 million and $3.1 million, respectively, for the second quarter and six-month periods of 1994, an increase of $0.5 million and $0.7 million, respectively, over last year.
 Diagnostek, Inc. is a leading provider of integrated pharmacy services designed to contain the cost of dispensing pharmaceuticals. The company dispenses prescription drugs, primarily by mail and retail channels, to beneficiaries of health benefit plans and provides contract pharmacy services to hospital, managed care providers, and other institutions.
 DIAGNOSTEK, INC.
 Summary Financial Data
 ($ Millions)
 Three months ended Six months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Consolidated Diagnostek, Inc.
 Revenues (A) $98.6 $ 96.3 $195.5 $180.7
 Operating income 2.8 (0.8) 6.1 2.8
 Net earnings 2.9 (0.9) 5.4 1.9
 Net earnings per share
 (in dollars) $ 0.12 $ (0.04) $ 0.23 $ 0.08
 (A) During fiscal 1993, the company began to classify as revenue certain drug and medical items supplied to contract pharmacy service customers that had been previously netted against cost of sales. Amounts have been reclassified for prior periods and had no impact on consolidated or segment operating income or earnings.
 Summary Segment Financial Data
 ($ Millions)
 Three months ended Six months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Mail Pharmacy Services
 Revenues $ 58.2 $ 60.1 $116.0 $118.1
 Operating income 4.1 (0.9) 7.2 1.6
 Contract Pharmacy Services
 Revenues $ 38.1 $ 34.3 $ 74.8 $ 58.4
 Operating income 1.5 1.0 3.1 2.4
 Medical Imaging
 Revenues $ 2.3 $ 1.9 $ 4.7 $ 4.2
 Operating income (0.3) 0.1 (0.4) 0.4
 Corporate items/other
 Revenues $ -- $ -- $ -- $ --
 Operating income (2.5) (1.0) (3.8) (1.6)
 -0- 10/14/93
 /CONTACT: Fredric Spar of Kekst and Company, 212-593-2655/
 (DXK)


CO: Diagnostek, Inc. ST: New Mexico IN: MTC SU: ERN

PS -- NY020 -- 2099 10/14/93 10:11 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 14, 1993
Words:904
Previous Article:CONTINENTAL BANK CORPORATION REPORTS THIRD-QUARTER EARNINGS OF $1.11 PER SHARE VERSUS $0.82 PER SHARE FOR THE SAME PERIOD LAST YEAR
Next Article:NATIONAL STARCH TERMINATES JOINT VENTURE IN JAPAN
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters