SOURCE: Daxor Corp.

May 15, 2008 08:30 ET

(AMEX: DXR) Daxor Corporation Announces First Quarter 2008 Earnings

NEW YORK, NY--(Marketwire - May 15, 2008) - Daxor Corporation (AMEX: DXR), a medical instrumentation and biotechnology company, today announced first quarter earnings for 2008. For the three months ended March 31, 2008 total operating revenues decreased by 17% to $420,913 from $505,882 in 2007. This decrease is directly attributable to no BVA-100 Blood Volume Analyzers being sold in the first quarter of 2008 versus two being sold during the first quarter of 2007. The Centers for Medicare and Medicaid Services (CMS) implemented a policy change effective January 1, 2008 which significantly reduced the reimbursement for diagnostic radiopharmaceutical products. It is the opinion of management that this change negatively impacted instrument sales. Volumex kit sales for the first quarter of 2008 were up by 24% over the prior year. Total costs and operating expenses for the first quarter of 2008 decreased by 1% to $1,689,714 vs. $1,711,749 for the first quarter of 2007.

At March 31, 2008, the Company had total assets of $81,470,591 with total stockholders' equity of $54,319,391 vs. total assets of $102,560,500 and $54,915,885 of stockholders' equity at December 31, 2007. In the first three months of 2008 and 2007, the company had significant income from investments which completely offset the operating loss. Total other income increased by 101% to $8,589,809 from $4,265,861.The net income per share for the current quarter was $1.66 versus $0.66 for the same period in 2007.

The company is continuing to increase its expenses associated with research and development as part of the continuing effort to develop products that are complementary to its current product line. The improvement in the company's financial structure is important for the company's expansion plans. There were 53 Blood Volume Analyzers placed at March 31, 2008 versus 36 instruments at March 31, 2007.

The company engages in clinical trial agreements to allow customers to begin utilization of the instrument and to become familiar with the clinical benefits of a measured blood volume prior to the purchase of the instrument.

Daxor is actively marketing to and educating physicians who treat chronic and acute medical conditions where a blood volume analysis would improve care. The company is also actively conducting and pursuing various clinical outcome studies to demonstrate evidenced-based medical improvements in treatment and reductions in the cost of care.

Under the provisions of the Company's stock buyback program, Daxor may purchase up to 250,000 shares of the Company's common stock each year. As part of this program, the Company purchased 65,800 shares of Daxor Common Stock during the quarter ended March 31, 2008 and 163,808 during the year ended December 31, 2007.

                                    Three Months Ended
                              March 31, 2008    March 31, 2007
                              --------------    --------------
Total Operating Revenue         $   420,913       $   505,882
Total Costs & Expenses          $ 1,689,714       $ 1,711,749
                                -----------       -----------
Net Loss From Operations       ($ 1,268,801)     ($ 1,205,867)

Total Other Income              $ 8,589,809       $ 4,265,861
                                -----------       -----------

Net Income                      $ 7,321,008       $ 3,059,994
                                -----------       -----------

Weighted Average Number of
 Shares Outstanding               4,421,518         4,606,787
Earnings  Per Share             $      1.66       $      0.66

Contact Information

  • Contact Information:

    Daxor Corporation
    Stephen Feldschuh
    212-330-8515
    Chief Operating Officer
    stephen@daxor.com

    David Frankel
    212-330-8504
    Chief Financial Officer
    dfrankel@daxor.com