IRIS Loses $6.25 Million Though Revenues Rise 48%

International Remote Imaging Systems Inc. posted a large loss in its third quarter despite a 48% jump in revenues, partly because of the expense of a recent acquisition.

IRIS, based in Chatsworth, is a maker of urinalysis machines used in medical tests.

In the quarter ending Sept. 30, IRIS posted a $6.25-million loss, compared to a $563,818 profit in the same period a year earlier. Sales rose to $5.5 million, from $3.7 million last year. During the quarter, there was a $7.25-million acquisition expense from its purchase of Perceptive Scientific Instrument.

For the nine months, IRIS posted a $5.69-million loss, compared to a $1.96-million loss a year earlier. Sales for the nine months rose 34% to $14.2 million, up from $10.6 million.

The company also said that it had completed a review of sale orders for the past year, and as a result the company is restating some of its financial results for its Dec. 31, 1995, fiscal year, as well as the quarters that ended in March and June.

In the 1995 fiscal year, IRIS' restated net income was $2.12 million, down from its originally reported net income of $2.36 million. The company is filing the new results with the Securities and Exchange Commission.

Previously, IRIS reduced its work force by about 20% to cut costs. The restructuring will result in a one-time charge to earnings of about $300,000 in the fourth quarter.

IRIS also said it would abandon its plan for another public offering of stock. And the company said that it is not in compliance with some of its bank loan requirements with City National Bank but is in negotiations to work out an agreement with the bank.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World