================================================================================
FONAR CORPORATION
Fonar MRI news @ aol . com Inventor of MR Scanning
For Immediate Release An ISO 9001 Company
Contact: Daniel Culver 110 Marcus Drive
Director of Communications Melville, N.Y. 11747
Web site: www.fonar.com Tel: (631) 694-2929
Email:invest2007@fonar.com Fax: (631) 390-1709
================================================================================
FONAR Announces Fiscal 2008 First Quarter Financial Results
Net Loss Decreases 97% to $209,000
MELVILLE, NEW YORK, November 14, 2007 - FONAR Corporation (NASDAQ-FONR), The
Inventor of MR Scanning(TM), today announced its financial results for the first
quarter of fiscal 2008, which ended September 30, 2007. The net loss for the
first quarter of fiscal 2008 was $209,000 as compared to a net loss for the same
period one year earlier of $6.1 million. For the first three months of fiscal
2008 the loss per common share (basic and diluted) was $0.04, as compared to
$1.29 loss per common share (basic and diluted), for the same period of fiscal
2007.
Also, during the first fiscal quarter of 2008, the loss from operations dropped
to $4.1 million from $6.1 million one year earlier, a decrease of 33%.
Total revenues for the three months ended September 30, 2007 were $8.7 million.
This compares to $7.8 million for the same period one year earlier, an increase
of 11%. Service and repair revenues increased, by 8%, from $2.5 million in the
fiscal first quarter of 2007 to $2.7 million in the fiscal first quarter of
2008. The continued rise in service and repair revenues is due to the result of
warranty expirations among the installed base after the first year. As of
September 30, 2007, there were 121 FONAR UPRIGHT(R) Multi-Position(TM) MRI units
installed worldwide. In addition, during the first quarter of fiscal 2008, total
product sales increased to $2.6 million from $2.5 million one year earlier for
an increase of 4%.
At the end of the first fiscal quarter of fiscal 2008, total current assets were
$24.4 million, total assets were $42.2 million, total current liabilities were
$32.1 million and total long-term liabilities were $1.1 million. Total cash and
cash equivalents, and marketable securities increased 21% from $3.4 million on
June 30, 2007 to $4.2 million as of September 30, 2007.
The Company sold its 50% interest in a consolidated subsidiary and its 20%
equity interest in a non-consolidated entity on July 31, 2007. This significant
one-time event, within the reporting period, resulted in a gain of approximately
$4.0 million. The two entities manage outpatient MRI centers using the
UPRIGHT(R) Multi-Position(TM) MRI scanner.
Raymond Damadian, M.D., president and chairman of FONAR said, "Currently there
is increasing recognition by the medical community of the importance of
Dynamic(TM) MRI scanning as compared to the static MRI scans of recumbent-only
conventional MRI scanners. Dynamic(TM) MRI, unlike static MRI, enables
multi-position assessment and characterization of spine pathology in the
flexion, extension, lateral bending and rotation positions. The diagnostic
information gained by these dynamic scans is key to the understanding of the
cause of a patient's back pain."
"Additionally," continued Dr. Damadian, "the FONAR UPRIGHT(R) Multi-Position(TM)
MRI addresses medical needs that the recumbent-only scanner cannot. Scoliosis,
for example, can now be evaluated by radiation-free imaging in the FONAR
Dynamic(TM) UPRIGHT(R) MRI scanner overcoming the 70% higher risk of breast
cancers reported by the National Cancer Institute in 2000 in a study of 5,466
women with scoliosis patients monitored by chest X-ray. Also, patients with
Chiari syndrome, wherein the cerebellar tonsils of the brain become entrapped in
the foramen magnum at the base of the skull, can now have their pathology fully
visualized for the first time. Moreover, elderly patients who cannot lie flat
can now be scanned, the need for anesthesia in children needing MRI can be
minimized, and claustrophobic patients are successfully scanned."
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30,
2007 2006
----------- ------------
Revenues $8,669,000 $ 7,783,000
Net Loss $(209,000) $(6,105,000)
Basic & Diluted Loss
per Common Share $(0.04) $(1.29)
________________________________________________________________________________
The Inventor of MR Scanning(TM), Full Range of Motion(TM), True Flow(TM), The
Proof is in the Picture(TM), Dynamic(TM), pMRI(TM), and Multi-Position(TM) are
trademarks, and UPRIGHT(R) and STAND-UP(R) are registered trademarks of FONAR
Corporation.
Be sure to visit FONAR's Website for product and investor
information: www.fonar.com
#
This release may include forward-looking statements from the company that may or
may not materialize. Additional information on factors that could potentially
affect the company's financial results may be found in the company filings with
the Securities and Exchange Commission.
###