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ADAC basks in third-quarter glow
Nuclear medicine and information systems vendor ADAC Laboratories reported record third-quarter results last month and predicted good times ahead due to the Health Care Financing Administration's publication of reimbursement rates for PET studies. The
Nuclear medicine and information systems vendor ADAC Laboratories reported record third-quarter results last month and predicted good times ahead due to the Health Care Financing Administration's publication of reimbursement rates for PET studies. The Milpitas, CA, firm enjoyed revenues and net income that climbed 17% and 29%, respectively, over the same period the year before.
For the quarter (end-June), the company announced sales of $83.5 million, compared with $71.5 million generated in the third quarter of 1997. Company officials attributed the growth to an 18% increase in service revenue and a 17% increase in product sales revenue. ADAC's net income was $7.5 million, compared with $5.8 million in the third quarter of 1997.
Revenues in the company's HealthCare Information Systems (HCIS) division grew 36%. HCIS now has 39 live QuadRIS sites established, with another 28 sites in progress. Due to a partnership with Siemens Medical Systems of Hoffman Estates, IL, ADAC's Radiation Therapy Products (RTP) division's revenue and operating income increased by 100%. Siemens has agreed to package ADAC's Pinnacle3 system with its radiation oncology products.
ADAC said that HCFA's June announcement of reimbursement rates for PET procedures has removed physician uncertainty regarding the studies, and ADAC saw bookings rebound for its Molecular Coincidence Detection (MCD) units, with 24 orders received. Other accomplishments during the period included a five-year, $15 million contract with North Shore-Long Island Jewish Health System, the commercial launch of ADAC's C-PET scanner, and the receipt of the first MCD/AC camera order in China from Beijing Medical University Hospital.
In other ADAC news, the company promoted Trace Devanny, COO of its HCIS division, to president and COO of the unit. Devanny joined ADAC in 1997. The company also announced on July 23 that imaging services firm American Diagnostic Medicine of Elmhurst, IL, has selected ADAC as its nuclear medicine supplier, and has placed an initial order for 15 cameras.
