Fri, Sep 27, 8:32 PM (84 days ago)
FONAR Corporation's fiscal year 2024 results show a revenue increase of 4.3% to $102.9 million, driven primarily by its physician management segment, which grew to $94.6 million. Net income rose to $14.1 million from $12.1 million in the previous year. However, the medical equipment segment reported a constant revenue of $8.3 million, with an operating loss widening from $5.9 million to $7.0 million due to increased costs from R&D and service expansion initiatives. Operating expenses overall increased by 3.0%. The company incurred $1.7 million in R&D, focusing on MRI upgrades. Despite lower reimbursement rates impacting scanner sales, FONAR's cash and equivalents grew by 9.9% to $56.3 million, and working capital improved to $122.5 million. The total liabilities rose by 15.5% to $57.5 million. Risks include reduced reimbursement rates, inflation, and competition in the diagnostic imaging market. FONAR's strategic focus remains on enhancing its Upright® MRI technology and expanding its management services through HMCA. Future outlook remains cautious due to ongoing regulatory changes and market pressures.