Fonar sees profit upswing for Q2
MRI developer Fonar reported an uptick in net income for its unaudited fiscal 2009 second quarter financial results, which ended Dec. 31.
For the period, the Melville, N.Y.-based company reported a net income of $781,000, a sharp turnaround compared with a net loss of $3.8 million posted for the same quarter last year.
Total revenues showed an increase of 6 percent to $11.3 million, compared with $10.7 million for the same period last year, according to Fonar. During the second quarter, total product sales were at $4.4 million, a 10 percent gain over the corresponding quarter one year earlier.
"Fonar has achieved its goal of becoming profitable again. The current quarter results were the result of careful cost-cutting of R&D, and selling, general and administrative costs (SG&A). Subsequently, we have decreased SG&A, the bulk of Fonar's overhead, by 40 percent for the six month period ending Dec. 31, as compared to the same six month period one year earlier, from $11.2 million to $6.7 million... Our R&D expenditures have also declined 27 percent to $1.8 million during the past six month time period from $2.5 million one year earlier," said Raymond Damadian, MD, Fonar's president and chairman.
For the period, the Melville, N.Y.-based company reported a net income of $781,000, a sharp turnaround compared with a net loss of $3.8 million posted for the same quarter last year.
Total revenues showed an increase of 6 percent to $11.3 million, compared with $10.7 million for the same period last year, according to Fonar. During the second quarter, total product sales were at $4.4 million, a 10 percent gain over the corresponding quarter one year earlier.
"Fonar has achieved its goal of becoming profitable again. The current quarter results were the result of careful cost-cutting of R&D, and selling, general and administrative costs (SG&A). Subsequently, we have decreased SG&A, the bulk of Fonar's overhead, by 40 percent for the six month period ending Dec. 31, as compared to the same six month period one year earlier, from $11.2 million to $6.7 million... Our R&D expenditures have also declined 27 percent to $1.8 million during the past six month time period from $2.5 million one year earlier," said Raymond Damadian, MD, Fonar's president and chairman.