Shares of MRI device maker, FONAR Corp. (Nasdaq: FONR) were up more than 113 percent in early trading Tuesday after the company announced that it was profitable for the fiscal year ended June 30, 2009.
“We are very pleased to see the Company return to profitability,” said FONAR’s chairman and president, Raymond Damadian. “We have now made a profit for three quarters straight and are hopeful to continue this trend of profitability. A very sound reason is that the FONAR UPRIGHT® Multi-Position™ MRI technology (Dynamic MRI) is the only participant in this unique market.”
Profit for the full-year ended June 30 increased to $1.1 million or 21 cents per share, compared to a loss of $13.5 million, or $2.76 per share a year ago. Included in net income for the year ended June 30, 2009 is a pre-tax gain on the sale of a subsidiary of $1.4 million. Revenue for the year was up 12 percent to $39.7 million, compared with $35.6 million a year ago.
The FONAR UPRIGHT® Multi-Position™ MRI technology (Dynamic MRI) has played a big role in the company’s continued growth. The technology allows patients to stand, sit and perform the exact movements that cause them pain, allowing for improved and more exact imaging.
Revenues in the fiscal year ended June 30, 2009 from product sales of the FONAR UPRIGHT® Multi-Position™ MRI scanners increased 48 percent to $16.6 million for the year, compared with $11.2 million in the same period a year ago. There were 137 FONAR UPRIGHT® Multi-Position™ MRI scanners installed in the United States and around the world. The backlog for the MRI product was $25.7 million as of June 30, 2009.
“The Company has done well controlling costs while continuing to produce the FONAR UPRIGHT® Multi-Position™ MRI scanner,” said Damadian. "This is the result of a cost cutting program that we initiated over a year ago.”
Total costs and expenses related to operations decreased 23 percent to $40.4 million, from $52.5 million in the fiscal year ended June 30, 2008.
FONAR Corporation is responsible for inventing the scientific process of MR Scanning™, which is the basis for all MRI images ever created.