ATI Medical Profit in 2nd Quarter Declines

ATI Medical Inc., hurt by price-cutting in its primary business of medical equipment rentals, said its fiscal second-quarter profit plunged to $38,700 from $873,500 a year earlier.

The earnings drop in the quarter that ended Jan. 31 came despite a 13% rise in Glendale-based ATI’s revenue, to $14.2 million from $12.6 million. ATI noted that although its second-quarter profit is down from a year ago, it marked an improvement from the company’s $290,800 loss in the preceding quarter.

“We increased prices and reduced operating costs beginning in late January, which should benefit future quarterly results,” ATI President Paul E. Stevenson said in a statement.

For the first half of its fiscal year, ATI lost $252,100 compared with year-earlier earnings of $1.67 million, and its 6-month revenue rose 13% to $27.2 million from $24.1 million.