AMERICAN SHARED HOSPITAL SERVICES (NYSE AMEX:AMS), a leading provider of turnkey technology solutions for advanced radiosurgical and radiation therapy services, today announced financial results for the second quarter and first half of 2011.
Second Quarter Results
For the three months ended June 30, 2011, revenue increased 1.2% to $4,206,000 compared to $4,155,000 for the second quarter of 2010. Net income for the second quarter of 2011 rose to $21,000, or $0.00 per share. This compares to net income of $3,000, or $0.00 per share, for the second quarter of 2010.
The number of procedures performed on Gamma Knife® Perfexion TM systems supplied by AMS increased 10.3% for the second quarter of 2011 and 15.9% for the first half, compared to the second quarter and first half of 2010, respectively. The total number of procedures performed in AMS' Gamma Knife business decreased 3.1% for the second quarter and increased 4.1% for the first half, compared to the second quarter and first half of 2010, respectively.The primary reason for the decrease in total Gamma Knife procedures in the second quarter was that the Gamma Knife unit at Lehigh Valley Hospital in Allentown, Pennsylvania is being held for sale and AMS no longer gets credit for procedures performed there. In March 2011 AMS announced a contract to upgrade a Gamma Knife to Perfexion specifications at Lehigh. As part of this upgrade, AMS agreed to the early termination of the existing 10-year lease on the Gamma Knife system it supplied to Lehigh in 2004, and Lehigh has agreed to purchase the Perfexion system. AMS expects pre-tax income of approximately $1 million from this transaction to be recognized in the third quarter of 2011. Gross margin for this year's second quarter increased to 43.7% compared to 42.1% for the second quarter of 2010. Operating income increased 37.2% to $225,000 for the second quarter of 2011 compared to $164,000 for the second quarter of 2010.