<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998.
Commission file number 0-12405
IMATRON INC.
New Jersey
I.D. No. 94-2880078
389 Oyster Point Blvd, South San Francisco, CA 94080
(415) 583-9964
Indicate by check mark whether the Registrant (1) had filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No_________
At May 1, 1998, 79,146,985 shares of the Registrant's common stock (no par
value) were issued and outstanding.
Total Number of Pages: 14
<PAGE>
IMATRON INC.
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
PART I. FINANCIAL INFORMATION PAGE
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets - 3
March 31, 1998 (unaudited) and December 31, 1997.
Condensed Consolidated Statements of 4
Operations - Three Months Ended
March 31, 1998 and 1997 (unaudited).
Condensed Consolidated Statements of 5
Cash Flows - Three Months Ended
March 31, 1998 and 1997 (unaudited).
Notes to Condensed Consolidated Financial 6
Statements (unaudited).
Item 2. Management's Discussion and Analysis of Financial 10
Condition and Results of Operations.
PART II. OTHER INFORMATION 12
SIGNATURES 14
<PAGE>
<TABLE>
IMATRON INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
<CAPTION>
ASSETS March 31, December 31,
1998 1997
-------------------- ------------------
(Unaudited) (Restated)
<S> <C> <C>
Current assets
Cash and cash equivalents $ 7,244 $ 14,425
Short-term investments 885 180
Accounts receivable (net of allowance for doubtful accounts
of $3,052 at March 31, 1998 and $2,758 at December 31, 1997):
Trade accounts receivable 5,983 8,215
Accounts receivable from affiliate 1,701 1,438
Inventories 16,588 12,926
Prepaid expenses 589 461
-------------------- ------------------
Total current assets 32,990 37,645
Property and equipment, net 9,915 10,359
Other assets 1,161 1,219
-------------------- ------------------
Total assets $ 44,066 $ 49,223
==================== ==================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 2,753 $ 2,962
Other accrued liabilities 6,084 7,055
Capital lease obligations - due within one year 1,656 1,578
-------------------- ------------------
Total current liabilities 10,493 11,595
Deferred income on sale leaseback transactions 1,251 1,376
Deferred income on service contract 390 420
Capital lease obligations 4,103 4,507
-------------------- ------------------
Total liabilities 16,237 17,898
Minority interest 14,692 14,255
Shareholders' equity
Common stock, no par value; authorized-100,000 shares;
issued and outstanding - 79,038 shares in 1998 and 78,203
shares in 1997 91,167 90,728
Deferred compensation (211) (232)
Additional paid-in capital 9,340 9,290
Accumulated deficit (87,159) (82,716)
-------------------- ------------------
Total shareholders' equity 13,137 17,070
-------------------- ------------------
Total liabilities and shareholders' equity $ 44,066 $ 49,223
==================== ==================
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
IMATRON INC.
Condensed Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)
(Unaudited)
<CAPTION>
Three Months Ended March 31,
-----------------------------------------------
1998 1997
-------------------- --------------------
(Restated)
<S> <C> <C>
Revenues
Product sales $ 949 $ 7,791
Service 1,347 1,030
Development contracts 1,250 1,250
Clinics 1,021 506
-------------------- --------------------
Total revenues 4,567 10,577
-------------------- --------------------
Cost of revenues
Product sales 1,086 5,441
Service 1,360 705
Development contracts 1,250 1,250
Clinics 914 755
-------------------- --------------------
Total cost of revenues 4,610 8,151
-------------------- --------------------
Gross profit (43) 2,426
Operating expenses
Research and development 737 922
Marketing and sales 1,683 1,363
General and administrative 1,541 1,111
-------------------- --------------------
Total operating expenses 3,961 3,396
-------------------- --------------------
Operating loss (4,004) (970)
Other income, net 120 310
Interest expense (122) (174)
-------------------- --------------------
Loss before provision for income taxes (4,006) (834)
Provision for income taxes - -
-------------------- --------------------
Loss before minority interest expense (4,006)
(834)
Non-cash return to minority interest (437) (436)
-------------------- --------------------
Net loss $ (4,443) $ (1,270)
==================== ====================
Net loss per common share $ (0.06) $ (0.02)
==================== ====================
Number of shares used in per share calculations
78,995 78,109
==================== ====================
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
IMATRON INC.
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
<CAPTION>
Three Months Ended March 31,
----------------------------------------------------
1998 1997
----------------- -----------------
(Restated)
Cash flows from operating activities:
<S> <C> <C>
Net loss $ (4,443) $ (1,270)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization 630 520
Amortization of deferred compensation 21 9
Non-cash return to minority interest 437 436
Warrant issued for services 50 -
Common stock issued for services 9 78
Provision for bad debt 294 45
Loss on disposal of assets 175 -
Changes in:
Accounts and notes receivable 1,675 (2,341)
Inventories (3,662) (727)
Prepaid expenses (128) 783
Other assets 58 10
Accounts payable (209) (44)
Other accrued liabilities (971) (423)
Deferred revenue (155) (126)
----------------- -----------------
Net cash used in operating activities (6,219) (3,050)
----------------- -----------------
Cash flows from investing activities:
Capital expenditures (361) (139)
Purchases of marketable securities (885) (5,082)
Maturities of marketable securities 180 14,171
----------------- -----------------
Net cash provided by (used in) investing activities (1,066) 8,950
Cash flows from financing activities:
Payment of obligation under capitalized leases (326) (275)
Proceeds from issuance of common stock 430 509
----------------- -----------------
Net cash provided by
financing activities 104 234
----------------- -----------------
Net increase (decrease) in cash and
cash equivalents (7,181) 6,134
Cash and cash equivalents, at beginning
of the period 14,425 10,862
----------------- -----------------
Cash and cash equivalents, at end of the
period $ 7,244 $ 16,996
================= =================
Supplemental Disclosure of Non-cash Investing and Financing Activities:
Cash paid for interest on capital lease
obligations $ 95 $ 114
================= =================
<FN>
The accompanying notes are an integral part of these condensed consolidated financial statements
</FN>
</TABLE>
<PAGE>
IMATRON INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for annual
consolidated financial statements. In the opinion of management, adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three month period
ended March 31, 1998 are not necessarily indicative of the results that may be
expected for the year ended December 31, 1998. These interim financial
statements should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's Annual Report to
Shareholders for the year ended December 31, 1997.
2. PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Imatron Inc. (the
Company) and its subsidiary HeartScan Imaging, Inc. (HeartScan). All
intercompany accounts and transactions have been eliminated in consolidation.
3. NEW ACCOUNTING STANDARDS
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130 "Reporting Comprehensive Income" (SFAS
130) which became effective for financial statements for periods beginning after
December 15, 1997, and establishes standards for reporting and display of
comprehensive income and its components in a full set of general purpose
financial statements. The Company has adopted SFAS 130 as of January 1, 1998.
The Company, however, does not have any components of comprehensive income as
defined by SFAS 130 and therefore, for the three months ended March 31, 1998 and
1997, comprehensive income is equivalent to the Company's net loss.
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 131 "Disclosures about Segments of a Business
Enterprise" (SFAS 131) which became effective for financial statements beginning
after December 15, 1997, and establishes standards for disclosures about
segments of an enterprise. The Company has adopted SFAS 131 and has included the
segment disclosures required for interim financial statements in Note 7. The
reportable segments under SFAS 131 do not differ from the segments as reported
in the Company's December 31, 1997 consolidated annual financial statements
either in their definition as segments or in the basis of measurement of segment
profit or loss.
<PAGE>
4. INVENTORIES
Inventories consist of (in thousands of dollars):
March 31, December 31,
1998 1997
-------------------- -------------------
Purchased parts and sub-assemblies $ 3,055 $ 3,212
Service parts 1,713 1,398
Work-in-process 5,095 3,611
Finished goods 6,725 4,705
==================== ===================
TOTAL $ 16,588 $ 12,926
==================== ===================
5. INCOME (LOSS) PER SHARE
The Company adopted SFAS No. 128, "Earnings per Share", as of December 31, 1997.
SFAS No. 128 establishes standards for computing and presenting earnings per
share. Net loss per share (basic) is computed based on the weighted average
number of common shares outstanding, and net loss per share (diluted) is
computed based on the weighted average number of common shares and dilutive
potential common shares outstanding during the period. Stock options and
warrants have not been included in the computation of diluted earnings per share
as their effect would have been antidilutive. All prior period net loss per
share data was restated by the Company upon the adoption of SFAS 128.
6. STOCK OPTION REPRICING
On February 24, 1998, the Company offered employees holding options under the
1993 Stock Option Plan, the opportunity to exchange such options for options
with an exercise price equal to $2.56 per share, the fair market value of the
Company's stock on that date. Outstanding options to purchase 760,597 shares
with an exercise price greater than fair market value on February 24, 1998 were
repriced at $2.56 per share.
7. SEGMENT INFORMATION AND FOREIGN SALES
The Company operates in two industry segments. Imatron designs, manufactures,
services and markets a computed tomography scanner and HeartScan Imaging, Inc.,
operates clinics that perform the coronary artery scan procedures. The
accounting policies of the segments are the same as these described in the
summary of significant accounting policies included in the Company's
consolidated financial statements and notes thereto for the year ended December
31, 1997. The Company evaluates performance based on profit or loss from
operations before income taxes not including non-recurring gains and losses.
The Company accounts for intersegment sales and transfers as if the sales or
transfers were to third parties, that is, at current market prices.
<TABLE>
The following table summarizes the results of operations for the Company's two major business segments for each quarter ended
March 31:
<CAPTION>
(In thousands) Imatron HeartScan Eliminations Consolidated
--------------- --------------- --------------- ---------------
1998:
<S> <C> <C> <C> <C>
Revenues from external customers $ 3,546 $ 1,021 $ - $ 4,567
Intersegment revenues 212 - (212) -
Total revenue 3,758 1,021 (212) 4,567
Operating loss (2,708) (1,296) - (4,004)
Total assets 32,571 11,515 (20) 44,066
1997:
Revenues from external customers $ 10,071 $ 506 $ - $ 10,577
Intersegment revenues 94 - (94) -
Total revenue 10,165 506 (94) 10,577
Operating loss 559 (1,529) - (970)
Total assets 36,213 18,373 (2,500) 52,086
</TABLE>
8. RESTATEMENT
In June 1996, Imatron completed a private placement offering whereby 100,000
shares of HeartScan Series A Preferred Stock were sold at $160 per share and
realized net proceeds of $14,798,000. The preferred stock is convertible on a
ten-to-one basis into HeartScan common shares at any time. Mandatory conversion
of the preferred stock into common stock will occur upon the successful
completion of a HeartScan initial public offering. The HeartScan Series A
Preferred Stock may be exchanged at the sole option of the holder into Imatron
common stock at an exchange price of $5.00 per share until the earlier of a) two
year period following closing of the Preferred Stock offering; or b) a HeartScan
initial public offering. If there is no initial public offering within 24 months
<PAGE>
of the Preferred Stock closing, holders may convert the HeartScan Series A
Preferred Stock into Imatron common stock, at a conversion price equal to the
greater of $1.50 per share or a 27% discount from the weighted average closing
price of Imatron common stock for the 90 day period immediately preceding 24
months of the Preferred Stock closing and each date that is 3 months thereafter
and including the 48th month of the Preferred Stock closing.
In March 1997, subsequent to the Company finalizing its 1996 consolidated
financial statements, the Securities and Exchange Commission ("SEC") announced
its position on accounting for the issuance of convertible preferred stock with
a nondetachable conversion feature that is deemed "in the money" at the date of
issue (a "beneficial conversion feature"). The beneficial conversion feature is
initially recognized and measured by allocating a portion of the preferred stock
proceeds equal to the intrinsic value of that feature to additional
paid-in-capital. The intrinsic value is calculated at the date of issue as the
difference of the conversion price and the quoted market price of the Company's
common stock, into which the security is convertible, multiplied by the number
of shares into which the security is convertible. The discount resulting from
the allocation of proceeds to the beneficial conversion feature is treated as a
dividend and is recognized as a return to the preferred shareholders over the
minimum period in which the preferred shareholders can realize that return (i.e.
from the date the securities are issued to the date they are first convertible).
The accounting for the beneficial conversion feature requires the use of an
unadjusted quoted market price (i.e. no valuation discounts allowed) as the fair
value used in order to determine the intrinsic value dividend. Additionally
preferred dividends of a subsidiary are included in minority interest as a
charge against income.
Prior to applying the accounting described above in its previously issued
financial statements, the Company had not recognized an intrinsic value dividend
on the HeartScan preferred stock which was issued in June 1996. The discounted
conversion features of this preferred stock into Imatron common stock (the
immediate conversion at $5.00 per share and the conversion in two years from the
date of the preferred stock issuance at a 27% discount) was provided to the
preferred shareholders, in essence to provide them with an exit strategy in the
absence of a HeartScan IPO. Thus, the Company did not believe a discount should
be recognized on a contingently issuable security. Furthermore, at the time of
agreeing to the terms of the transaction the $5 per share immediate conversion
price was above the market price of the Company's common stock but at the time
the HeartScan preferred stock was actually issued, the market price had
increased to $5.75 and thereafter, it dropped below $5 again. Accordingly, the
Company did not believe that any calculation of the discount should include the
impact of this short-term market fluctuation.
In December 1997, the staff of the SEC gave a speech further refining its March
1997 announcement. Based on discussions with the staff of the SEC in April 1998,
the staff concluded that the Company should retroactively apply its announcement
because it should be applied to contingently issuable securities and, as
discussed in the December speech, the portion attributable to the discount that
could have been obtained immediately on conversion (even though the shares had
not been registered yet) should be recognized on the day the preferred shares
were issued. The balance of the discount based on a market value of $5.75 per
common share is being recognized over two years from the date of issuance.
The consolidated financial statements as of and for the three months ended March
31, 1997 have been restated to give effect to the accounting treatment described
above. The restatement resulted in (1) a reclassification in the consolidated
balance sheet of $2,182,000 reducing minority interests and increasing
additional paid-in capital (equity) and (2) the recognition of a minority
interest charge of $436,000 in the consolidated statement of operations
increasing the Company's net loss from $834,000 to $1,270,000.
The restatement of the previously issued consolidated financial statements, in
order to apply the accounting described herein for the intrinsic value of the
beneficial conversion features, does not affect the cash flows of the Company.
The non-cash return to minority interest is recognized as an increase in
minority interest in the balance sheet. If the preferred shareholders elect to
convert their shares to Imatron common stock, the minority interest will then
convert to Imatron equity.
<PAGE>
9. SUBSEQUENT EVENTS
On April 1, 1998, Imatron's obligations and Siemens' funding under the
Memorandum of Understanding terminated. In addition, Siemens surrendered its
exclusive distribution rights and Imatron assumed worldwide distribution for its
C-150 scanners.
On May 5, 1998 , the Company entered into an agreement whereby Imatron will
acquire a majority ownership of Positron Corporation ("Positron"). Positron
designs, manufactures, markets, and services POSICAMTM PET systems, which are
medical imaging devices utilizing positron emission tomography ("PET")
technology.
In conjunction with the execution of the definitive agreements, the Company will
begin making working capital advances to Positron of up to $500,000 in order to
enable it to meet a portion of its current obligations. The financing bears
interest at 1/2% over the prime rate, is due March 1, 2000, and is secured by
all of Positron's assets. Positron has been operating under severe liquidity and
working capital constraints.
Under the terms of the agreement, Imatron will acquire a majority ownership of
the outstanding common stock of Positron Corporation on a fully diluted and
as-if-converted basis, excluding out-of-the-money warrants and options
determined at the time of issuance for $100.
Consummation of the issuance of shares to Imatron is conditioned upon, among
other things, Positron shareholders' approval. The Company anticipates that the
acquisition will close in the third quarter of this year.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Results of Operations:
Three months ended March 31, 1998 versus 1997
Overall revenues for the first quarter ended March 31, 1998 of $4,567,000
decreased $6,010,000 or 57% compared to 1997 revenues of $10,577,000. Net
product revenues decreased to $949,000 in 1998 from $7,791,000 in 1997 primarily
because of decrease in scanner sales to one in 1998 from five in 1997. Although,
certain customers provided the company with downpayments for scanners for
delivery for the first quarter of 1998, those customers were unable to obtain
letters of credit which led to the decrease in scanner sales. Service revenues
increased to $1,347,000 in 1998 from $1,030,000 in 1997 due to an increase in
scanners under service contracts. The increase primarily resulted from the
service support agreement entered into with Siemens. Development contract
revenue of $1,250,000 represents non-refundable payments received from Siemens
to compensate the Company for its research and development efforts for which
Siemens received certain rights under the three year Memorandum of Understanding
entered into in 1995.
Clinic revenues related to HeartScan Imaging, Inc. (HeartScan) increased by 102%
to $1,021,000 in 1998 compared to $506,000 in 1997 due primarily to an increase
in the number of patient scans per center as a result of the promotional and
marketing efforts by HeartScan, as well as, an increase in public awareness with
regard to the benefits of coronary artery screening. The increase was slightly
offset by a decrease in revenues from the Seattle center due to its closure in
February 1998. The closure of the Seattle clinic was a result of its poor
financial performance and its lack of response to the marketing and sales
efforts put forth by the Company to increase sales.
The following table represents the revenues and operating loss for each clinic
for the three months ending March 31:
1998 1997
---------------------------- ------------------------------
Revenues Operating losses Revenues Operating losses
-------------- ---------------- ---------------- -------------
San Francisco, CA $343,000 $(116,000) $ 135,000 $ (119,000)
Seattle, WA 39,000 (183,000) 89,000 (213,000)
Houston, TX 246,000 (257,000) 102,000 (202,000)
Washington DC 324,000 (150,000) 121,000 (180,000)
Pittsburgh, PA 69,000 (145,000) 59,000 (213,000)
Clinic costs of revenues as a percentage of clinic revenues decreased to 90% in
1998 as compared to 149% in 1997 primarily due to an increase in the number of
patient scans and the closure of the Seattle center which was consistently
operating at a loss.
HeartScan started operations in its San Francisco clinic in 1993, Seattle clinic
in 1995 and Houston, Washington D.C. and Pittsburgh clinics in 1996. The Company
anticipated that the start-up period would range from twelve to eighteen months.
The start-up phase for the sites has taken longer than expected as acceptance of
the coronary artery scan within the medical community has been slower than
projected.
Total cost of revenues as a percent of revenues for the first quarter of 1998
increased to 101% compared from 77% in 1997. Product cost of revenues as a
percent of product revenues increased to 114% in 1998 from 70% in 1997 . The
negative gross profit on product sales is the result of selling one, small gross
margin scanner to Siemens, coupled with the fact that the Company incurred one
time re-engineering costs for its scanner manufacturing process. Service cost of
revenues as a percent of service revenue increased to 101% in 1998 from 68% in
1997 due to increases in headcount and travel expenses incurred by the Company
resulting from an increase in the number of scanners being serviced.
<PAGE>
Operating expenses of $3,961,000 in 1998 increased $565,000 or 17% compared to
1997 expenses of $3,396,000. Research and development expenses of $737,000 in
1998 decreased from $922,000 in 1997 primarily as a result of a decrease in
inhouse research for new product development programs. Selling expenses
increased to $1,683,000 in 1998 from $1,363,000 in 1997 primarily due to higher
advertising expenses incurred by HeartScan for its centers and expenses related
to studies conducted promoting the benefits of the Company's product.
Administrative expenses increased to $1,541,000 in 1998 from $1,111,000 in 1997
due to an increase in investor relations and bad debt expense relating to Asian
distributors.
Other income decreased to $120,000 in 1998 from $310,000 for the first quarter
of 1997. The decrease was attributable to lower cash balances and investments in
interest-bearing securities primarily due to the operating loss incurred and the
$175,000 loss on retirement of property and equipment belonging to HeartScan
Seattle . Interest expense decreased to 122,000 for the first quarter of 1998
from $174,000 in the comparable period of 1997 due primarily to a lower balance
on the capital lease obligations.
The Company incurred a non-cash charge to income of $437,000 recorded as
minority interest expense in the first quarter of 1998 in connection with
certain beneficial conversion features granted to the holders of the HeartScan
convertible Series A Preferred Stock (see Note 8 to the Notes to the
Consolidated Financial Statements).
Liquidity and Capital Resources:
At March 31, 1998, working capital decreased to $22,497,000 compared to December
31, 1997 working capital of $26,050,000 primarily as a result of the net loss
sustained by the Company amounting to $4,443,000.
The Company's assets decreased to $44,066,000 compared to December 31, 1997
total assets of $49,223,000. Net cash used in operating activities during the
year ended March 31, 1998 was $6,219,000 compared to $3,050,000 during the same
period in 1997. The use of cash was mainly due to an increase in inventory
resulting from decreased product sales and payments of accrued liabilities.
Significant uses of cash in investing activities included purchases of
securities held for sale and capital equipment. Key financing activities for the
first quarter ended 1998 included repayments of obligations under the capital
lease offset by proceeds from exercise of stock options and warrants.
The Company's liquidity is affected by many factors, some based on the normal
ongoing operations of the business and others related to the uncertainties of
the industry and global economies. Although the cash requirements will fluctuate
based on timing and extent of these factors, management believes that cash, cash
equivalents, and short-term investments existing at March 31, 1998 together with
the borrowing capability, and the estimated proceeds from ongoing sales of
products and services in 1998 will provide the Company and HeartScan with
sufficient cash for operating activities and capital requirements through
December 31, 1998.
Currently, the Company and its subsidiary do not have significant capital
commitments in 1998.
To satisfy the Company's capital and operating requirements beyond 1998,
profitable operations, additional public or private financing or the incurrence
of debt may be required. If future public or private financing is required by
the Company, holders of the Company's securities may experience dilution. There
can be no assurance that equity or debt sources, if required, will be available
or, if available, will be on terms favorable to the Company or its shareholders.
The Company does not believe that inflation has had a material effect on its
revenues or results of operations.
This Form 10Q contains forward-looking statements which involve risk and
uncertainties. The company's actual results may differ significantly from the
results discussed in the forward-looking statements as a result of certain risk
factors set forth in the company's Annual Report on Form 10-K/A for the year
ended December 31, 1997.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a vote of Security Holders
Not applicable.
Item 5. Other Information
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
No. 11 - Computation of per share earnings.
(b) Form 8-K Reports:
Not applicable.
<PAGE>
Exhibit No. 11
IMATRON INC.
Computation of Per Share Earnings
(Amounts in thousands, except per share data)
(Unaudited)
March 31, March 31,
1998 1997
---------------- ---------------
Basic and Diluted:
Weighted average common shares outstanding 78,995 78,109
================ ===============
TOTAL 78,995 78,109
================ ===============
Net loss $ (4,443) $ (1,270)
================ ===============
Net loss per share $ (0.06) $ (0.02)
================ ===============
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 14, 1998
IMATRON INC.
(Registrant)
/s/ Gary H. Brooks
------------------------------------
Gary H. Brooks Vice President
Finance/Administration,
Chief Financial Officer and Secretary
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from Imatron
Inc.'s consolidated condensed statements of income and consolidated condensed
balance sheets and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<CIK> 0000720477
<NAME> Imatron Inc.
<MULTIPLIER> 1,000
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Mar-31-1998
<EXCHANGE-RATE> 1
<CASH> 7244
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<ALLOWANCES> (3052)
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0
0
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<EPS-PRIMARY> (.06)
<EPS-DILUTED> (.06)
</TABLE>
