Vital Images Q3 posts decline in profits
Vital Images has posted a decline in third-quarter profit, which the company attributed to marketplace slowdown and the 2005 Deficit Reduction Act.
"When we discussed our second quarter results in August, we underestimated the marketplace slowdown. We believe customers are anticipating the release of next-generation, faster CT scanners and delaying purchases until they become available,” said Jay Miller, Vital Images president and chief executive officer. “Additionally, the Deficit Reduction Act, or DRA, is having a larger impact on Vital Images and our competitors than we anticipated at the beginning of 2007."
Vital Images reported revenue of $17.1 million, a 4 percent decline from last year’s third quarter results of $17.8 million.
Vital Images also reported that its net income fell to $927,000 as compared to net income of $1.6 million in the year-ago quarter.
Third quarter 2007 operating expenses totaled $14.5 million for the Minneapolis-based company, compared to $12.4 million for the same quarter last year.
"When we discussed our second quarter results in August, we underestimated the marketplace slowdown. We believe customers are anticipating the release of next-generation, faster CT scanners and delaying purchases until they become available,” said Jay Miller, Vital Images president and chief executive officer. “Additionally, the Deficit Reduction Act, or DRA, is having a larger impact on Vital Images and our competitors than we anticipated at the beginning of 2007."
Vital Images reported revenue of $17.1 million, a 4 percent decline from last year’s third quarter results of $17.8 million.
Vital Images also reported that its net income fell to $927,000 as compared to net income of $1.6 million in the year-ago quarter.
Third quarter 2007 operating expenses totaled $14.5 million for the Minneapolis-based company, compared to $12.4 million for the same quarter last year.