FONAR Announces 39.2% Increase in Revenues for Second Quarter
of Fiscal 2008
NEW YORK, February 19, 2008 - FONAR Corporation (NASDAQ-FONR),
The Inventor of MR Scanning, today announced its financial results
for the second quarter of fiscal 2008, which ended December
31, 2007. FONAR is the developer of the patent-protected UPRIGHT® Multi-Position™ MRI,
which scans the body in any position.
revenues for the second quarter of fiscal 2008 ended December
31, 2007 increased 39.2% to $10.7 million as compared to $7.7
million for the same period last year. Total revenues for the
six months ended December 31, 2007 rose 25.2% to $19.4 million
as compared to $15.5 million for the same period last year.
the second fiscal 2008 quarter, product sales increased 92.1%
to $4.0 million from $2.1 million for the same period last year.
In addition, product sales for the six month period ended December
31, 2007 increased 45.1% to $6.6 million from $4.5 million for
the same period last year.
and repair revenues for the second fiscal 2008 quarter increased
11.3% to $2.7 million from $2.4 million for the same period last
year. In addition, service and repair revenues for the six month
period ended December 31, 2007 increased 9.5% to $5.4 million
from $5.0 million during the same period last year. Service and
repair revenues continue to increase because of the steady increase
of the installed base of the FONAR UPRIGHT® Multi-Position™ MRI
and the accompanying service contract agreements. As of December
31, 2007, there were 124 FONAR UPRIGHT® Multi-Position™ MRI
units installed worldwide.
the second fiscal 2008 quarter ended December 31, 2007, there
was a 29.8% decrease in the net loss to $3.8 million as compared
to a net loss of $5.5 million during the same period last year.
The net loss for the six months period ended December 31, 2007,
decreased 65.0% to $4.0 million as compared to a net loss of $11.6
million during the same period last year. The loss per common
share (basic and diluted) for the second fiscal quarter of 2008
was $0.78 as compared to a loss of $1.13 during the same period
of December 31, 2007, total cash, cash equivalents and marketable
securities were approximately $3.2 million as compared to $3.4
million as of June 30, 2007. Also, as of December 31, 2007, total
assets were $41.2 million, total current assets were $24.0 million,
total current liabilities were $34.8 million, and total long-term
liabilities were $1.1 million. Events that occurred during the
quarter ended December 31, 2007 include the second sale of a FONAR
UPRIGHT® Multi-Position™ MRI to the Center for Diagnostic
Imaging (CDI) of Minneapolis, Minnesota. This second sale was made just six months
after the first UPRIGHT® Multi-Position™ MRI was installed at CDI.
It is notable that in 2006 CDI was overwhelmingly selected as the “NUMBER
ONE FREESTANDING IMAGING GROUP” in the United States by readers of Medical
Imaging Magazine, a leading national diagnostic imaging industry publication.
For details visit: www.medicalimagingmag.com/issues/articles/2006-01_01.asp#freeimage
October 23-27, 2007, as reported in The Spine Journal, Proceedings
of the 22nd Annual Meeting of the North American Spine Society
(NASS), the University of California, Los Angeles (UCLA) School
of Medicine reported four scientific studies on 1,302 patients
that compared the visualization of spine pathology by Dynamic™ Multi-Position™ MRI
to images obtained by Static single-position MRI.
UCLA findings were as follows: The Static MRI “Miss Rate” of
spondylolisthesis (unstable vertebra) at L4-5 is 35.1%, L4-5 being
the vertebral segment responsible for the majority of disc herniations.
The Static MRI “Miss Rate” of spondylolisthesis at
L3-4 was even higher at 38.7%. The Static MRI Overall “Miss
Rate” of spondylolisthesis is 18.1%. Spinal Stenosis, the
cause of the syndrome neurogenic intermittent claudication, and
the dimensions of the spinal canal were measurable in the FONAR
UPRIGHT® Multi-Position™ MRI with “high precision”.
November 26, 2007, at the annual meeting of the Radiological Society
of North America (RSNA), FONAR announced it had invented a radiation-free
method to diagnose and monitor scoliosis treatment using the FONAR
UPRIGHT® Multi-Position™ MRI. This is important, because
in 2000 the National Cancer Institute had reported a study of
5,466 women that demonstrated that women with scoliosis experienced
a 70% greater risk of developing breast cancer that resulted from
their protracted exposure to diagnostic X-rays. Therefore a radiation-free
technology that can monitor the treatment success of childhood
scoliosis without radiation is a much needed advance in diagnostic
radiology. FONAR’s patent-pending breakthrough utilizes
new software and a new receiver coil developed for the unique
UPRIGHT® Multi-Position™ MRI. MRI images of the entire
upright spine are produced quickly and at costs comparable to
that of the current X-ray method.
on the financial and operating results for the second quarter
of fiscal 2008, Raymond Damadian, M.D., president and chairman
of FONAR, said, “We are excited about our future because
of the advantages to patients and physicians of the FONAR UPRIGHT® Multi-Position™ MRI.
Our customers are delighted with the scanner. In fact, one out
of three has purchased an additional unit. The primary use of
MRI is to image the spine. Since the Dynamic™ UPRIGHT® MRI
can do that better than a recumbent-only, static, single-position
MRI scanner, there is tremendous benefit for spine care to be
realized from the use of the FONAR UPRIGHT® Multi-Position™ MRI.”
February 13, 2008 edition of the Journal of the American Medical
Association (JAMA) reports that in 2005 the U.S. spent $86 billion
on spine care and treatments, an increase of 65% since 1997, and
nearly as much as is spent on cancer care. It also indicates some
disappointment with the success of medicine to help patients with
back pain. I can appreciate their sentiment. If you can’t
see the patient’s problem because the diagnostic imaging
tools for doing so are insufficient, you can’t fix it,” said
Dr. Damadian. “The FONAR UPRIGHT® Multi-Position™ MRI
and its power to provide UPRIGHT® Multi-Position™ Spondylography™ and
Spondylometry™ are designed to achieve the enhanced diagnostic
accuracy needed for improved treatment outcomes.” Visit:
Consolidated Statements of Operations (Unaudited)
||For the Three Months
Ended December 31,
|For the Six Months
Ended December 31,
|Basic & Diluted Loss
|Per Common Share
The Inventor of MR Scanning™,
Full Range of Motion™, pMRI™, Dynamic™, Multi-Position™,
True Flow™, The Proof is in the Picture™, Spondylography™ and
Spondylometry™ are trademarks
and UPRIGHT® and STAND-UP® are registered trademarks
of FONAR Corporation.
This release may include
forward-looking statements from the company that may or may not
materialize. 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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