Vital Images sees revenue drop in Q2

Vital Images, a Minneapolis-based provider of advanced visualization and analysis solutions, has reported that its fiscal 2009 second quarter revenue was down compared with the same quarter a year ago.

Second quarter revenue was $13.4 million, compared with $15.7 million for the second quarter of 2008. The company also reported a second quarter net loss of $19.6 million, $18.1 million of which were non-cash charges, compared with a net loss of $1.6 million during the second quarter of 2008. 

Vital said that the $18.1 million in non-cash charges consisted of a $15 million valuation allowance against its deferred tax assets, as well as a $3.1 million write-off of capitalized costs relating to the unimplemented portion of its enterprise resource planning system. 

"While the economic downturn continues to constrain hospital capital spending and, as a result, our revenue, we remain confident in our ability to remain cash-flow positive and that our enterprise strategy of providing anywhere, anytime access to our industry-leading clinical software applications is the best way to serve patients, physicians and hospitals," said Michael H. Carrel, Vitial's president and CEO.





Michael Bassett,

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