ATI Medical’s Earnings Drop 97% in 3rd Quarter

ATI Medical Inc. in Glendale said its fiscal third-quarter profit plunged 97% from a year earlier despite a 6% increase in revenue.

ATI, which rents medical equipment to hospitals, home-care patients and the entertainment industry, said its net income in the quarter ended April 30 fell to $31,300 from $1.06 million a year earlier. Its revenue climbed to $14 million from $13.2 million.

The company blamed the earnings drop on price cutting in its industry and ATI’s investment in its new home-patient business.

For the first nine months of its fiscal year, ATI lost $220,800 compared with a year-earlier profit of $2.73 million. Its nine-month revenue rose 10%., to $41.2 million from $37.4 million.