Applied Technology: Imaging Innovation

Innovation and applied technology helps at airports.Analogic Corporation (Nasdaq: ALOG) is a high-technology signal and image-processing company, providing products and services to original equipment manufacturers (OEMs) and end users in growing medical diagnostics and security markets worldwide. The company is recognized worldwide for advancing the state of the art in automatic explosives detection, computed tomography (CT), digital radiography (DR), ultrasound, magnetic resonance imaging (MRI), and advanced signal processing. Corporate headquarters is Peabody, Mass.

The eXaminer and OnGuard products use three-dimensional continuous-flow CT technology to provide comprehensive explosives and threat detection. One pass through the company EDS system provides complete three-dimensional image data for an entire bag and its contents to determine the presence of explosives or other prohibited items.

The TSA-certified checked-baggage systems includes a range of products for small to large airports. The OnGuard Family of checkpoint systems includes features for airport security checkpoints and high-threat facilities and for use for both carry-on and checked-baggage screening at small and medium-sized airports.

The corporation has more than 35 years of imaging experience and expertise, and is working to meet security needs of airports worldwide.

Highlights during the corporation’s first quarter results included:

  • First quarter revenue of $95.4 million and breakeven EPS
  • Positive cash flow from operations of $2.3 million
  • Medical technology business revenues increased $2.6 million from the prior quarter with the Computed Tomography (CT) and Magnetic Resonance Imaging (MRI) revenues up $6.5 million
  • Security technology business revenues decreased $5.9 million versus Q4 2009 due to fewer shipments of eXaminer(R) 3DX systems, reflecting a delay in orders from the Transportation Security Administration (TSA)
  • eXaminer(R) XLB, ultra-high-throughput baggage scanner, received formal certification from the TSA and first order for delivery in fiscal Q3 2010
  • Signed a major development contract with Smiths Detection for the development of high precision CT detection subsystems for use in a next-generation explosives detection system to be manufactured and marketed by Smiths.
  • Revenues for the first fiscal quarter ended Oct. 31, 2009, were $95.4 million, compared with fourth quarter revenues of $98.3 million and the prior fiscal year’s first quarter revenues of $101.6 million.

    Jim Green, president and CEO, commented, “We are encouraged in our medical technology business as we have returned to profitability and are starting to see indications that the medical imaging markets are beginning to improve, as reflected by the increased order volume of our CT and MRI sub-systems during the quarter. In addition, we are pleased to have announced our new relationship with Smiths Detection, a recognized leader in the aviation security field, as this represents a long-term growth opportunity.”

    “We will continue to focus on driving efficiencies throughout our businesses. Our recently announced presence in China provides additional low cost manufacturing and supply chain opportunities. We are confident that focusing on these and other items will drive enhanced profitability in each of the next three years on our pathway to double-digit operating margins by fiscal year 2012.”

    Segment Revenues

    Revenues reported from the company CT and MRI segment, previously referred to as medical imaging, were $57.7 million for the first quarter of fiscal 2010, up $6.5 million from the fourth quarter and down $1.5 million over the prior year’s first quarter.

    Digital radiography revenues were $8.2 million for the first quarter of fiscal 2010, down $0.2 million from the fourth quarter and up $0.7 million over the prior year.

    Security technology revenues were $6.9 million for the first quarter of fiscal 2010, down $5.9 million from the fourth quarter and down $6.0 million from a year earlier primarily due to order delays from OEM customer, L-3 Communications. According to the company’s press release, “We understand that these delays were driven by delays in TSA orders for checked baggage screening systems. The delay in order flow will impact segment revenues for the current fiscal year, but we are committed to profitability in this business. Separately, we were pleased to see that the eXaminer XLB received formal certification from the TSA and the first order was received for system delivery in the third fiscal quarter. In addition, a contract was signed with a new security OEM customer, Smiths Detection, to develop high precision CT detection subsystem components for a next-generation checked-baggage explosives detection system.”

    For company information, visit www.analogic.com.