MRI Machines Maker Fonar Posts 2Q Profit

MRI Machines Maker Fonar Posts 2Q Profit

MRI Machines Maker Fonar Corp. Swings to
Second-Quarter Profit on 65 Percent Jump in Sales

Associated Press
Wednesday, February 9, 2005

MELVILLE, N.Y. (AP) — Fonar Corp., a maker of magnetic resonance
imaging — or MRI — machines, on Wednesday posted a second-quarter
profit from a year-ago loss on a jump in sales.

Despite the good news, the company’s stock fell 8 cents, or 4.7
percent, to $1.62 in afternoon trading on the Nasdaq, which President
and Founder Raymond V. Damadian called a case of “buy on rumor,
sell on news.”

The 52-week low of $1 was set Oct. 25.

For the three months ended Dec. 31, net income rose to a profit of
$1.1 million, or 1 cent per share, from a loss of $2.6 million, or
3 cents per share, a year ago. Revenue grew by 65 percent to $29.5
million from $17.9 million.

In a press release, Damadian attributed the improvement to increased
demand and service and repair fees, as well as cost control.

“We believe that our sales and marketing initiatives combined with
continuing cost controls and new business opportunities provide the
company with a solid foundation for sustained profitability for the
remainder of this fiscal year,” he said.