Planar reports sales growth in the 3Q of FY04

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Planar Systems Inc. says its quarterly results show vitality in its medical business unit, as the company released its sales and earnings from the third quarter of FY04, ending June 25th.

Sales gained 6 percent to $66.7 million, compared with $62.9 million in the third quarter of FY03. Net earnings reached $2.7 million, compared with $4.4 million in the year ago quarter.

For the nine-month period, sales increased to $188 million, up from $179.7 million in the third quarter of FY03. Net earnings were $6.5 million, compared with $10.6 million in the year-ago period.

"Our growth strategies produced renewed vitality in the third quarter," said Balaji Krishnamurthy, chairman, president and CEO. "Especially noteworthy are the results from our medical business unit, which appears to be gaining market share and improving its position as this market continues to grow."

Sales in the company's medical segment were $20.2 million in the third quarter of FY04, down 5 percent from the third quarter of FY03 but up 7 percent sequentially. Planar says it initiated a "strategic offensive" in February 2004 to address a rapidly shifting market environment in the digital imaging sector with more competitive pricing and broader distribution.

For example, Planar initiated a trade-in-program from April 19 to July 16, allowing hospitals to swap 2MP or higher grayscale analog display controllers, regardless of make and model, for special incentive pricing on the purchase of dual sets of Planar's Dome C3 MP and Dome C5i - 5MPgrayscale flat-panel displays.

"While subsequent quarters will more fully bear out the financial impacts of our strategic initiatives in digital imaging products, it's clear the market was ready for this bold move, or strategy is on target and our products are regaining share," said Krishnamurthy.