Financial News: Fonar sees drop in sales

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Fonar Corporation announced its financial results for the Q2 fiscal 2007 ended December 31, 2006, with revenue of $7.7 million compared to $10.5 million for the corresponding period of fiscal 2006. During Q2, product sale revenues were $2.1 million, a decrease from $4.2 million one year earlier. The lower level of revenue is attributable to a slow down in capital equipment purchases by customers following bigger sales of the company’s UPRIGHT Multi-Position MRI in 2003, 2004 and 2005, the company said. Service and repair revenues for fiscal Q2 increased from $2.1 million to $2.4 million or by 16 percent in the quarter compared to Q2 fiscal 2006.

The company saw a net loss in Q2 fiscal 2007 was $5.5 million, as compared to a net loss of $5.4 million for the same fiscal 2006.