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 IRVINE, Calif., July 29 /PRNewswire/ -- Enhanced Imaging Technologies (EIT) Inc. (NASDAQ: EITI) today reported results of the second quarter and six months ended June 30, 1993. Revenues for the quarter were $12,521,000, compared with $11,374,000 for the second quarter of 1992. Net income was $300,000 or 5 cents per share, as compared to net income in the second quarter of 1992 of $1,292,000 or 21 cents per share. Weighted average common shares and equivalents for the second quarter ended June 30, 1993, were 6,468,773, compared with 6,292,751 for the quarter ended June 30, 1992.
 Revenues for the six months ended June 30, 1993, were $22,848,000, compared with $22,409,000 for the same period in 1992. Net income for this year's six-month period was $418,000 or 7 cents per share, compared with net income of $2,206,000 or 38 cents per share, for the six months ended June 30, 1992. Weighted average common shares and equivalents during the six months ended June 30, 1993, were 6,410,468, compared with 5,875,781 for the six months ended June 30, 1992.
 "The second quarter reflects continued revenue growth from the medical products and services segment of EIT, which includes Vari-X and the recently acquired EIT Systems Division," said Peter P. Tong, president and chief executive officer. "Vari-X revenues were $8,401,000 or 9 percent ahead of the same period last year, reflecting contributions of the two regional cine film distributors acquired during the fourth quarter of 1992. EIT Systems Division, which was acquired on May 1, 1993, generated revenues of $2,719,000 in the two months ended June 30, 1993. Systems Division revenues for the period included approximately $500,000 in sales representing product shipments that had been delayed until after the closing of the acquisition.
 "Earnings for the quarter and six months were negatively affected by increases in selling costs, which represent the additional costs to support sales of the two cine film distributors acquired in the fourth quarter of 1992 and the costs to support the Systems Division acquired in May 1993," added Tong.
 "Earnings were also negatively affected by the performance of our optical filters subsidiary, ODI, which continues to operate below historical levels. ODI revenues for the second quarter were $1,401,000, down from $3,667,000 from the same quarter last year. Revenues have been affected by the loss of a major customer and increased competition in the world market for optical filters for computer monitors," continued Tong. "Our plans to create new and innovative products, improve the brand name recognition of our products, and to strengthen our domestic and international distribution activities have been implemented, and the first line of new products was released during the second quarter."
 Enhanced Imaging Technologies Inc. and its two wholly owned subsidiaries, Vari-X Inc. and Optical Devices Inc. (ODI), sell products and provide services that produce high-quality images. Optical Devices develops, manufactures and markets optical filters that enhance the image quality and safety of electronic visual displays. Many of Optical Devices' products are distributed under the Vu-Tek(R) or Vu-Pro-Tek(R) name. EIT's medical products and services segment is comprised of its Torrance, Calif.-based Systems Division and Vari-X. The Systems Division manufactures a line of digital imaging products used in cardiac catheterization laboratories as well as components for original equipment manufacturers for use in radiology, ultrasound and magnetic resonance imaging applications. Vari-X is the leading supplier of specialized films and film-related imaging products and services designed to optimize the quality of cardiac images produced in cardiac catheterization laboratories. Its products include cine angiography film manufactured by AGFA, Ilford and DuPont, digital imaging products and numerous related accessories.
 Consolidated Statements of Operations
 (Unaudited, dollars in thousands, except per-share data)
 Three Months Six Months
 Ended June 30: 1993 1992 1993 1992
 Net revenues $12,521 $11,374 $22,848 $22,409
 Cost of sales 7,123 5,449 12,700 10,790
 Gross profit 5,398 5,925 10,148 11,619
 Selling, general and
 administrative expenses 4,562 3,269 8,765 6,666
 Income before interest and
 taxes 836 2,656 1,383 4,953
 Interest, net 256 309 490 862
 Income before income taxes 580 2,347 893 4,091
 Provision for income taxes 280 1,055 422 1,885
 Income before cumulative
 effect of accounting change 300 1,292 471 2,206
 Cumulative effect of
 accounting change --- --- 53 ---
 Net income $ 300 $ 1,292 $ 418 $ 2,206
 Net income per common share
 and equivalent common
 share $ 0.05 $ 0.21 $ 0.07 $ 0.38
 Weighted average common
 shares and equivalent
 common shares
 outstanding 6,468,773 6,292,751 6,410,468 5,875,781
 Consolidated Balance Sheets
 (Dollars in thousands)
 June 30, Dec. 31,
 1993 1992
 Current Assets:
 Cash and cash equivalents $ 1,505 $ 2,073
 Accounts receivable-trade, net 9,176 9,784
 Inventories 8,072 6,268
 Other current assets 870 259
 Total current assets 19,623 18,384
 Property and equipment, net 2,479 1,634
 Other assets 691 811
 Intangible assets, net 5,199 5,698
 Excess of cost over acquired net
 assets, net 16,168 16,535
 Total assets $44,160 $43,062
 Current Liabilities:
 Accounts payable $ 1,551 $ 1,657
 Accrued liabilities 810 1,263
 Notes payable, due within one year 1,737 1,495
 Notes payable to stockholders 1,359 453
 Deferred income taxes 214 175
 Total current liabilities 5,671 5,043
 Notes payable 3,734 2,931
 Notes payable to stockholders 1,474 2,252
 Other liabilities 140 246
 Total liabilities 11,019 10,472
 Commitments and contingencies --- ---
 Total stockholders' equity 33,141 32,590
 Total liabilities and
 stockholders' equity $44,160 $43,062
 -0- 7/29/93
 /CONTACT: Doug Sherk or Ken Dennard, 415-296-7383, or David Walke or Miriam Adler, 212-850-5600, all of Morgen-Walke, for Enhanced Imaging Technologies/

CO: Enhanced Imaging Technologies Inc.; Vari-X Inc.;
 Optical Devices Inc. ST: California IN: MTC CPR SU: ERN

GT-TM -- SF007 -- 7059 07/29/93 06:31 EDT
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Publication:PR Newswire
Date:Jul 29, 1993

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