Radiographic imaging systems developer Del Global Technologies has decided to exit the U.S. medical imaging business, and has signed an agreement in principle to transfer certain assets and the product lines of Del Medical Imaging from Del Global to United Medical Group (UMG).
The companies stated their goal is to have the transaction completed prior to the 2009 Radiological Society of North America (RSNA) conference beginning at the end of this month.
“UMG intends to continue to run Del Medical as a wholly-owned subsidiary, enhance the existing product line and maintain the collective current channels of distribution,” said Toufic Lorenzo, president and CEO of Harrison, N.Y.-based UMG.
The terms of the transaction were not disclosed.
This acquisition announcement came a day after the company released its fiscal 2009 fourth quarter and year-end results, which concluded on Aug. 1. The business posted a net loss for fiscal year 2009 of $4.1 million, which Del partially attributed to lower sales at the Del Medical Systems Group. This incuded a $3.7 million pre-tax legacy litigation settlement expense. The company had posted a 2008 fiscal year net income of $3 million. Fiscal year 2009 sales declined to $80.4 million from the $108.3 million posted in 2008.
According to Del, its operating losses for the 2009 fiscal year were $3 million compared with an operating income of $6.4 million last year. Operating income for fiscal 2008 included $1.9 million of one-time, non-cash goodwill impairment charges related to the Medical Systems Group’s U.S. medical business and $500,000 in litigation settlement costs.