CTI Molecular Imaging increases revenues and earnings in 2Q of FY04

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An "excellent quarter" for one of its subsidiaries propelled CTI Molecular Imaging Inc. to greater revenues in its second fiscal quarter, ending March 31.

Net revenues increased 30 percent to $106.3 million, compared with $81.9 million in the second quarter of FY03. Net income reached $5.8 million, compared with $4.5 million in the year-ago quarter.

For the six-month period, net revenues increased to $180.4 million, compared with $142.5 million in the first half of FY03. Net income declined to $6.5 million, compared with $7.9 million in the year-ago period.

In the second quarter, CTI sold 45 scanners and booked orders for an additional 38 units.

CTI President and CEO Ronald Nutt noted that subsidiary CTI Solutions had "an excellent quarter in terms of FDG dose volumes and pricing, which provided an added benefit to both revenues and margins." Net revenues at CTI Solutions climbed to $45.5 million, compared with $40.2 million in the second quarter of FY03.

While scanner shipments were below plan in the second quarter for CTI Solutions, the segment experienced what the company described as "strong growth" in sales of FDG. FDG doses increased 60 percent over the prior year's quarter.

Nutt added that the implementation of the announced realignment of the sales and marketing approach between CTI and Siemens Medical Solutions USA Inc. "may cause a one-time disruption to our financial results in the third [fiscal] quarter."

CTI projects revenues of approximately $95 million to $100 million in the third fiscal quarter.