Financial News: Vital Images sees rise in revenue; Kodak Health Group sees sales decline

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Vital Images announced record Q3 revenue of $17.8 million, a 35 percent increase over $13.2 million in Q3 2005. Net income for the 2006 third quarter was $1.6 million, essentially the same as last year. Total revenue increased to $50.5 million for the first nine months of 2006, up 39 percent over $36.4 million for the first nine months of 2005. Net income increased to $4.3 million for the first nine months of 2006. This compares favorably to last year with net income of $3.4 million.

Eastman Kodak Company reported Health Group Q3 2006 sales of $597 million, down six percent. Earnings from operations for the segment also were down at $68 million, compared with $96 million a year ago. The company credits higher silver prices, and also the costs associated with the company’s exploration of strategic alternatives for its Health Group as the cause for the decreased sales and earnings. Through the changes the group has maintained operating margins of 11.4 percent, the company said. Overall, Kodak reported GAAP earnings improvement of $877 million for Q3, on sales of $3.204 billion, largely as the result of the recording of a tax valuation charge in the year-ago quarter of $778 million. The company also delivered a $98 million increase in digital earnings, driven by wider gross profit margins, from strong earnings performance in the Graphic Communications and Consumer Digital businesses, and as a result of the company’s global cost-reduction initiatives.