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 third quarter and first nine months of 2012.
Third Quarter Results
Medical services revenue for the three months ended September 30, 2012 increased 1.7% to $4,236,000. This compares to medical services revenue for the third quarter of 2011 of $4,164,000. Total revenue for the third quarter of 2011 of $9,148,000 included revenue from equipment sales of $4,984,000. Net income for the third quarter of 2012 was $9,000, or $0.00 per diluted share. This compares to net income of $220,000, or $0.05 per diluted share, for the third quarter of 2011.
In March 2011, AMS announced a contract to upgrade a Gamma Knife ® to Perfexion TM specifications at Lehigh Valley Hospital in Allentown, Pennsylvania. 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 agreed to purchase the Perfexion system. Pre-tax income from this transaction of $844,000 was recognized in the third quarter of 2011.The number of procedures performed on Gamma Knife Perfexion systems supplied by AMS increased 16.2% for the third quarter and 8.0% for the first nine months of 2012 compared to the same periods of 2011. The total number of procedures performed in AMS' Gamma Knife business, including Gamma Knife and Gamma Knife Perfexion, increased 5.2% for this year's third quarter and 8.9% for the first nine months compared to the same periods of 2011. The Perfexion system AMS supplied to Florence Nightingale Hospital Group in Istanbul through its EWRS Turkey subsidiary that began treating patients in May contributed to this growth. Revenue increased more slowly than procedure volume primarily due to variations in the mix of procedures by site. Revenue comparisons were also constrained by the termination late in the third quarter of 2011 of the lease on the Gamma Knife system AMS supplied to Lehigh Valley Hospital, and the expiration in the second quarter of 2012 of a customer contract at another site.