Scan-Optics reports Q1 '98 earnings, deal with Toshiba

Scan-Optics (Manchester, CT) reports Q1 '98 financial results. Revenue of $12.9 million is up from $12.4 million in Q1 '97. A net income of $428,000 compares with a Q1 '97 net income of $675,000 Professional services revenue increased $1.1 million ­ an eye-popping 235% ­ from Q1 '97. Total hardware revenue declined by $500,000; domestic hardware revenue declined by $900,000 due to a contract delay by the Japanese Ministry of Health, which should be resolved by Q3 '98. Despite the economic difficulties experienced by Far East customers, "We are encouraged...by the favorable results we are yielding from our efforts to diversify our revenue mix and expand our sales," said James Mavel, Scan-Optics president, chairman and CEO. In the current quarter, look for Scan-Optics to roll out new solutions targeting the transportation, order processing and government vertical markets.

Scan-Optics has also signed an agreement with Toshiba to distribute the new 7400 series of mid-range scanners. With this deal, Scan-Optics becomes the exclusive distributor for the scanners in the Americas, Europe, Australia and certain regions of the Far East. The deal brings "flexible, comprehensive andcompetitively priced solutions" to Scan-Optics' customer base, commented Mavel, and addresses the growing need for distributed scanning in diverse organizations. Pricing for the 7400 series scanners, unveiled at Comdex Spring '98, ranges from $20,000 to $40,000 depending on configuration.

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