Fonar Corporation (Fonar) has reported total revenues of $39.7 million for the fiscal 2009, compared with the total revenues of $35.6 million in the previous year-end. It has also reported net income of $1.12 million for the fiscal 2009, compared with the net loss of $13.5 million in the previous year-end.
Raymond V. Damadian, chairman and president of Fonar, said, “We are very pleased to see the Company return to profitability. 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.”
Total costs and expenses related to operations decreased 23%, from $52.5 million in the fiscal year ended June 30, 2008, to $40.4 million in the fiscal year ended June 30, 2009. The loss from operations decreased 96% from a loss of $16.9 million in the fiscal year ended June 30, 2008, to a loss of $0.7 million in the fiscal year ended June 30, 2009. Dr. Damadian continued, “the Company has done well controlling costs while continuing to produce the FONAR UPRIGHT® Multi-Position™ MRI scanner. This is the result of a cost cutting program that we initiated over a year ago.”
Revenues from product sales of the FONAR UPRIGHT® Multi-Position™ MRI scanners increased 48% from $11.2 million in the fiscal year ended June 30, 2008 to $16.6 million one year later at fiscal 2009. At June 30, 2009 there were 137 FONAR UPRIGHT® Multi-Position™ MRI scanners installed in the United States and around the world. 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.
At June 30, 2009, total assets were $28.4 million, total current assets were $18.3 million, total current liabilities were $29.1 million, and total long-term liabilities were $2.1 million. The backlog for MRI product was $25.7 million. Total cash and marketable securities were $1.2 million.
Dr. Damadian said, “FONAR’s prospects have much improved since the country’s financial difficulties last year and our customers’ uncertainties regarding the Deficit Reduction Act (DRA) have eased. Over the past few years, the medical evidence continues to grow indicating that the FONAR UPRIGHT® Multi-Position™ MRI is the best MRI for diagnosing spine problems. So as pent-up demand for MRI scanners surfaces, we can expect rising sales.”
“Unfortunately, the outcomes of spinal surgery are less than optimal, a fact underscored by the recent book titled ‘The Failed Spine,’published by Lippincott, Williams & Wilkins, (M. Szpalski and R. Gunzburg, Editors, 2005). The high failure rate has resulted in the acronym, FBSS, which stands for Failed Back Surgery Syndrome. The authors report that the ‘major identifiable causes of FBSS’ include ‘failure to identify the structural source(s) of pain correctly,’” stated Dr. Damadian.
“Sadly, the distinguished Swedish spine surgeon, Alf Nachemson, MD, characterizes these unsatisfactory patient outcomes as the ‘high number of multiply operated surgical cripples,’ (Nachemson, A., The lumbar spine: An orthopaedic challenge. Spine, 1976:1, 59-71.).
“Since the FONAR UPRIGHT® Multi-Position™ MRI can place the patient in the exact position that generates his or her symptoms, the MRI picture can be taken in that position. This unique capability assures that the degenerative spinal change responsible for the patient’s pain is correctly identified and operated on, instead of surgery being performed on another spinal change that is not responsible for the patient’s symptoms. Unfortunately, surgery on the wrong spinal segment can generate additional symptoms post-operatively, while the patient continues to suffer with the symptoms not addressed by surgery on the wrong segment,” remarked Dr. Damadian.
“FONAR’s position in medical imaging is immeasurably enhanced by the fact that FONAR is the leader in UPRIGHT® Multi-Position™ MRI technology,” concluded Dr. Damadian.