New Image to Spin Off Unit to Stockholders

New Image Industries Inc. in Canoga Park said it plans to spin off its Styles-on-Video Inc. unit to its stockholders, and the company posted a big increase in revenue and profit for the quarter ended Dec. 31.

New Image mainly sells computerized imaging and camera systems that enable dentists to show patients “before” and “after” pictures of proposed treatments. The success of those products has enabled the company to grow rapidly over the past two years.

For its fiscal second quarter ended Dec. 31, New Image said net income quadrupled to $1.4 million, from $350,000 a year earlier. That profit came on a 111% boost in quarterly revenue, to $8 million from $3.8 million.

With those results, New Image’s profit for its first two fiscal quarters jumped to $2.2 million, from $462,000 a year earlier, and revenue more than doubled to $13.5 million, from $5.9 million a year ago. The company attributed the financial gains to strong growth in its AcuCam system, which features a miniaturized high-resolution camera built into a dental hand-piece.

The company’s Styles-on-Video subsidiary provides a similar system to beauticians and hairdressers, and it accounted for about 19% of New Image’s $13.5 million of total revenue during the six months that ended Dec. 31.

Terms of the proposed spinoff have not yet been announced or filed with the Securities and Exchange Commission, New Image said. However, it said the proposal would involve distributing Styles on Video’s stock as a dividend to New Image shareholders of record Feb. 8.