RadNet Reports Loss in Quarter

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Medical diagnostic imaging center operator RadNet Inc. reported a second-quarter loss as higher expenses overwhelmed a solid increase in revenue.

Los Angeles-based RadNet said Monday that the loss totaled $2.1 million, or 6 cents per share for the quarter ended June 30, compared with a profit of $1.2 million (3 cents) a year ago. Analysts surveyed by Thomson Financial had expected a 1 cent per share profit. The company reported a 19 percent gain in revenue to $127.4 million, beating analysts’ estimate of $122 million.

RadNet’s overall imaging exam volume rose 3.1 percent year over year, when including only centers it owned in both periods. But the company’s operating expenses rose 23.6 percent to $97.9 million, pushing up total operating expenses 22.9 percent to $119 million. The company said impairment and business dispute payment expenses, and a stock compensation expenses, were in part responsible for the loss.

RadNet said it continues to expect $470 million to $500 million in revenue for 2008. Analysts on average expect $483 million.

RadNet shares fell 42 cents, or 7 percent, to $5.73 in mid-morning trading on the Nasdaq.

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