Growth in its healthcare business segment could not overcome the absence of orders for its explosive detection systems (EDS), as Analogic Corp. reported lower revenues and earnings in its first fiscal quarter, ending Oct. 31.
Revenues slipped 43 percent to $75 million, compared with $132.3 million in the first quarter of FY03. Net income also declined to $631,000, compared with $19.6 million in the year-ago quarter.
Analogic President and CEO John Wood said the decrease "was about as expected." Last year, the company achieved record revenues and income in the first quarter due to extraordinary sales of its EXplosive Assessment Computed Tomography (EXACT) systems for EDS devices that screen checked luggage at airports. In the first quarter of FY03, Analogic shipped 175 systems; in the most recent quarter, the company shipped none. The difference in revenues totaled approximately $70 million.
Wood added that the company expects "additional orders for the EXACT this fiscal year and into the future, but at a much more modest level than a year ago."
On the medical side, Analogic reported increased demand for its patient monitoring equipment, due to the recent introduction of a new generation of monitors, and growth in its medical components businesses. The growth reflected "strong demand," Analogic noted, for its advanced CT data acquisition systems and MRI power systems.