Archive for November, 2011

Fonar Corp. (FONR) shares soar as Q1 net income increases 360 percent

Tuesday, November 15th, 2011

Shares of MRI company Fonar Corp. (Nasdaq: FONR) were up as much as 26 percent from Monday’s closing price in morning trading on Tuesday after the company reported a 360 percent increase in first quarter earnings driven by an increase in management and service revenue, and a decrease in costs and expenses, offset by a decrease in product sales.

Fonar’s net income for the first quarter of fiscal 2012 increased to $1.8 million, from $363,0000 a year earlier. Basic earnings per common share increased 257% to $0.25 per share during the first fiscal quarter of fiscal 2012 as compared to $0.07 per common share for the first fiscal 2011 quarter ended September 30, 2010. In addition, the diluted earnings per common share increased 243% to $0.24 per share during the first fiscal quarter of fiscal 2012 as compared to $0.07 per common share for the first fiscal 2011 quarter ended September 30, 2010.

Total revenues rose 11 percent to $9.6 million, compared to $8.7 million for the same period last year.  Total operating costs and expenses decreased 5 percent to $7.8 million, from $8.3 million a year ago. Fonar’s product sales in the quarter ended September 30, 2011 dropped to $1.8 million, from $2.7 million a year ago. Service and repair revenue increased to $2.9 million in the quarter, from $2.7 million a year ago, and revenues from management and other fees increased to $4.9 million, from $3.3 million a year ago.

“”Over the last six quarters we have a net profit of $4.9 million,” said Dr. Raymond Damadian, Fonar’s Chairman and CEO in a November 15 press release. “This is due to changes that we have had to make including a focus on the management of our ten UPRIGHT® MRI imaging centers and some difficult cost reductions. While sales are not as robust as in prior years, we believe sales of the UPRIGHT® Multi-Position™ MRI will increase as the U.S. economy continues its recovery. This is because the UPRIGHT® MRI has huge value in medicine when it comes to diagnosing the spine. As time goes on, more and more physicians and patients recognize this. The discovery that an interrupted CSF flow causes MS is a valuable discovery and one that will immensely help those poor souls afflicted with the symptoms of MS as well as FONAR tremendously.”

 

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DynaVox, Inc. (DVOX) rises after reporting better-than-expected Q1 results

Thursday, November 10th, 2011

Shares of communication and education products maker DynaVox, Inc. (Nasdaq: DVOX) were up as much as 35 percent from Wednesday’s closing price in morning trading on Thursday, after the company reported better-than-expected earnings for the first quarter of fiscal 2012.

DVOX touched a high of $4.57 on Thursday, up from Wednesday’s closing price of $3.38.

For the quarter ended September 30, the Pittsburgh-based company reported net sales of $26.2 million, up 21 percent over net sales of $21.6 million for the same quarter last year, and above the consensus estimate of $22.97 million. Key drivers behind the sales growth included a 17 percent increase in the company’s speech generating devices, and a 39 percent increase in sales of  DynaVox’s special education software.

DynaVox’s net income was $0.05 per share, beating the Thomson Reuters consensus estimate of $0.02 by $0.03.

For fiscal year 2012, DynaVox continues to project net sales to grow in the range of 3 percent to 7 percent from fiscal year 2011. The Company also continues to expect Adjusted EBITDA for fiscal year 2012 to be in the range of $23 million to $27 million and adjusted pro forma net income per share to be in the range of $0.28 to $0.36.

“We are pleased with our double digit sales growth and significantly improved bottom line performance during the first quarter, which validate that we are executing well within the new normal operating climate,” said Ed Donnelly, DynaVox’s Chief Executive Officer in a November 9 news release.

Shares of DVOX are down about 15 percent over the past three months.

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Groupon, Inc. (GRPN) pops on first day of trading

Friday, November 4th, 2011

Shares of daily deals site, Groupon, Inc. (Nasdaq: GRPN) surged nearly 50 percent in its debut on the Nasdaq on Friday. Groupon shares touched a high of $31.14 in morning trading on Friday up from its IPO price of $20 per share.

The company on Thursday sold 35 million shares for $20 each, raising $700 million. It had filed with the U.S. Securities and Exchange Commission to sell 30 million shares for $16 to $18 each.

The three-year-old company is one of this year’s most hyped IPOs, and has one of the smallest floats of the past 10-years — slightly more than 5 percent of the company.

“Groupon is expensive. The $12.8 billion valuation is only achievable because of the low float,” Rob Romero, head of technology-focused hedge fund firm Connective Capital Management told Reuters.

At $12.8 billion, Groupon’s price tag is more than two-times what Google offered for the company last year.

Groupon “is a company with permission to market to 150 million consumers daily. No other company in the world has ever had that type of reach,” Boyan Josic, chief executive at DailyDealMedia, which tracks the industry, told Reuters.

 

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Anika Therapeutics, Inc. (ANIK) soars after Q3 results

Thursday, November 3rd, 2011

Shares of Anika Therapeutics, Inc. (Nasdaq: ANIK) were up as much as 28 percent from Wednesday’s closing price, in morning trading on Thursday after  the Bedford-based company announced third quarter revenue and profit increases, over the same period a year ago.

Shares touched an intraday high of $7.75, up from Wednesday’s closing price of $6.04.

For the three months ended September 30, 2011, Anika Therapeutics reported revenue of $18.5 million, a 33 percent increase over revenue of $13.9 million reported in the same quarter last year. Operating income for the third quarter of 2011 increased to $4.8 million, up from $2.1 million in the same period a year ago. Net income rose to $3 million, or 22 cents per diluted share, up from $1.2 million or 9 cents per diluted share last year.

“Fueled by 35% growth in product revenue and continued operational streamlining, this was an excellent quarter for Anika,” said Charles H. Sherwood, Ph.D., president and chief executive officer in a November 2 press release.  “Our product revenue growth was driven by strong U.S. and international sales of Orthovisc, as well as increased shipments of our ophthalmic products and the advanced wound care products from Anika S.r.l. that we have added to our dermal franchise, highlighted by Hyalomatrix®. In addition to contributing to our top-line growth, Anika S.r.l. continued to reduce its net loss in the third quarter.”

Headquartered in Bedford, Mass., Anika Therapeutics, Inc. develops, manufactures and commercializes therapeutic products for tissue protection, healing, and repair. These products are based on hyaluronic acid (HA), a naturally occurring, biocompatible polymer found throughout the body. Anika’s products range from orthopedic/joint health solutions led by Orthovisc, a treatment for osteoarthritis of the knee, to surgical aids in the ophthalmic and anti-adhesion fields. The company also offers aesthetic dermal fillers for the correction of facial wrinkles. Anika’s Italian subsidiary, Anika S.r.l, provides complementary HA products in orthopedic/joint health and anti-adhesion, as well as therapeutics in new areas such as advanced wound treatment and ear, nose and throat care. Anika S.r.l.’s regenerative tissue technology advances Anika’s vision to offer therapeutic products that go beyond pain relief to protect and restore damaged tissue.

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