DMS Will Post First Full-Year Profit in Six Years
Posted by Dr.Osteo on October 30, 2007
Diagnostic Medical Systems SA, the French maker of X-ray bone measure devices for osteoporosis, will post a profit this year for the first time since 2001 as it introduces new products to compete with Royal Philips Electronics NV, Chief Executive Officer Antoine Rabaste said. “We had an excellent first half and the second half will be at least at the same level,” Rabaste said in a telephone interview from Montpellier, France. DMS’s net income as a percentage of sales will rise to more than 10 percent in the second half, he said. Profit under that measure, excluding one- time gains, was at 9.7 percent in the first half.
DMS had first-half net income of 2.6 million euros ($3.7 million) compared with a net loss of 900,000 euros a year earlier, the company said in a statement yesterday. Nine-month revenue through September increased 38 percent. Full-year 2007 sales will beat a previous target of 20 percent growth, Rabaste confirmed.
DMS’s shares rose 11 cents, or 2.3 percent, to 4.81 euros in Paris, valuing the company at 38.7 million euros.
The company is starting sales of a new digital radiology machine named “Da Vinci,” Rabaste said. DMS expects between 4 million euros and 7 million euros of additional revenue in 2008 from the new product, he said.
`Da Vinci’ Product
“Very high technology products will help us to enter countries with high potential in Western Europe,” Rabaste said. DMS is introducing the “Da Vinci” after solving technology problems on another radiology system, the “Paladio,” he said.
“On the Paladio we had a problem on a detector but today we use the same detector used by our rivals Philips and Siemens,” Rabaste said. “We’re at the same technology level with them but we’ve got a price advantage.”
The company plans to sell three “Da Vinci” digital radiology machines this year and to deliver 30 to 50 in 2008, Rabaste said. The “Da Vinci” can be used for all most common radiology tests, including bone and lung scans, which represent 85 percent of the radiology market, he said.
DMS is also introducing “Stratos,” a new ultrasound machine for osteoporosis tests. (source)
