ADAC’s Q1 profits and revenues surge

Nuclear medicine vendor ADAC Laboratories enjoyed a banner firstquarter of fiscal 1997 (end-December). The Milpitas, CA, firmlast week reported quarterly financial results that indicateddouble-digit increases in both net income and revenues.

For the period, ADAC reported revenues of $68.4 million, a 24%increase over the $55 million in sales reported for the firstquarter of 1996. Net income grew 44% to $5.1 million, comparedwith $3.5 million in the same period of 1996. ADAC also reportedrecord bookings of $82 million, adding $13 million to its backlog.

ADAC said the revenue growth was due to a 10% increase in servicerevenue and a 30% increase in product revenue. Product gross marginsgrew 3.7% to 41.8% in the period. ADAC also began volume shipmentsof its Molecular Coincidence Detection (MCD) high-energy imagingtechnique in the quarter.