Vital Images Gaining Control

The market opportunity in the international markets is one of several macro-market trends that are expected to drive long-term demand for Vital Images’ (VTAL) products. International markets are still in the early phases of adopting advanced healthcare technology.

International customers are expected to continue to purchase increasingly more advanced healthcare technology as healthcare infrastructure and demand for advanced services increase. To continue to take advantage of this long-term growth opportunity, the company recently announced a reseller agreement with Chindex International, Inc. (CHDX - Snapshot Report).

International sales growth continues to be a strong point for the company, but during the first quarter 2009, overall revenue declined as a result of the weak sales performance in the U.S. Due to reduced visibility resulting from operating in a weak economy and uncertainty surrounding hospital capital spending, the company recently withdrew its guidance for 2009.

Instead of focusing on sales growth that involves variables beyond the company’s control, the company is focusing on variables that it can control such as controlling costs to improve the bottom line and maximizing cash flows. The company continues to seek gaining market share domestically and in international markets. Thus, the company is doing whatever it can to emerge as a stronger company once the economy and market conditions improve.

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