INDUSTRY PROFILE

Electromedical & X-ray

Apparatus Manufacturing
11.25.2019
NAICS CODES: 334510, 334517
SIC CODES: 3844, 3845

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Industry Overview
Companies in this industry manufacture magnetic resonance imaging and ultrasound equipment, pacemakers and
other devices, and irradiation apparatus for medical or industrial uses. Major US companies include Hologic,
Abbott, Varian Medical Systems, and Zoll Medical, as well as divisions of General Electric and Johnson &
Johnson. Outside the US, major companies include Hitachi Healthcare (Japan), Medtronic (Ireland), Sonova
(Switzerland), Philips (Netherlands), and Siemens Healthineers (Germany).

Sales of electromedical and X-ray apparatus are strongest in established markets including the US, Western
Europe, and Japan. Expansion is focused on developing nations such as India and China. Growth is driven by
aging populations and rising occurrences of noncommunicable conditions such as heart disease and cancer.

The US electromedical and X-ray apparatus manufacturing industry includes about 900 companies with combined
annual revenue of about $36 billion.

Competitive Landscape
Demand is driven by technological advancements, demographics (the aging US population drives the need for
medical products), and the needs of the health care industry. The profitability of individual companies depends
on efficient operations and effective marketing. Large companies enjoy economies of scale in research,
manufacturing, marketing, and distribution. Smaller companies can compete effectively by developing
innovative technologies or specialty products for niche markets, such as cancer therapy apparatus. In the US,
both the electromedical and the X-ray apparatus segments are highly concentrated: the 50 largest companies
account for about 85% and 95% of revenue, respectively.

Imports, mainly from Germany, Mexico, Japan, and Ireland, account for about 40% of the US market. Exports
account for about 40% of US production. Major export markets for US manufacturers include China, Japan, the
Netherlands, and Germany.

Products, Operations & Technology

Major products include MRI, CT, and PET scanners, along with X-ray, mammography, ultrasound, fluoroscopy,
and nuclear medicine equipment. Other products are hearing aids, pacemakers, defibrillators, electrocardiographs,
and electromedical endoscopic equipment.

Customers include hospitals, clinics, imaging centers, and physicians' offices. Health care providers use the
equipment to visualize inside the human body and diagnose and treat illnesses or injury.

MRI (magnetic resonance imaging) machines consist of a large tube with a strong magnet that causes the
atoms inside the body to line up in certain ways. The wires that form the magnet are supercooled in a liquid
helium bath that is insulated in a vacuum. Magnet strength ranges from 0.2 to 3.0 tesla. The equipment is
expensive, with prices ranging from $500,000 on up to $3 million for an MRI machine, depending upon the quality
of the images.

Ultrasound machines consist of a transducer that produces sound waves and receives echoes using a
piezoelectric effect. The CPU processes the echoes and creates the image for the researcher or physician.
Ultrasound machines cost around $90,000 to $250,000.

A CT or CAT (computerized [or computed] tomography or computerized axial tomography) scanner uses
X-rays to scan a consecutive series of images, called slices. These slices are then put together into a composite
image. Prices typically range from $300,000 to $1.5 million.

Pacemakers are placed in the chest or abdomen to help control abnormal heart rhythms. A pacemaker consists
of a battery, computerized generator, sensors (electrodes), and wires. Electrodes detect the heart's activity and
send data to the generator, which sends electrical pulses to the heart if its rhythm is abnormal. Recorded data,
which is used by physicians to fine-tune treatment, typically can be accessed remotely.

Products are complex and require highly specialized raw materials. Some companies contract out subassembly
work and install and test these units in-house. Raw materials may include tungsten, lead, rhenium, molybdenum
zirconium, and copper, radioactive materials for X-ray and nuclear medicine equipment, and steel alloy for X-ray
tubes. The supply of these materials is volatile, causing pricing to fluctuate. Companies also purchase sensors,
semiconductors, motors, and other electronic components, as well as metal castings and forgings, from
third-party suppliers.

Companies conduct quality control assessments throughout the manufacturing process, from inspection of raw
materials, to testing of purchased assemblies to inspection of the final product. Facilities are often certified
according to the International Standards Organization (ISO), which governs quality control.

There is a market for secondhand and refurbished machines; resales account for about 5% of industry revenue.
Technology

The electromedical and radiation device markets are subject to rapid technological advances, making research
and development a necessary component for success. Advanced scientific and technological research
methods are conducted in sterile laboratories and clinical trial management centers. Companies also acquire or
license technologies to further R&D efforts. Patents are valuable, and patent disputes are common.

Companies introduce new products (and improvements to existing products) to enhance effectiveness and
minimize invasiveness of medical and diagnostic procedures. For instance, next-generation filmless imaging
systems incorporate flat-panel detectors, which use amorphous silicon imaging technologies instead of
less-reliable intensifier tubes and costly X-ray film. Flat-panel detectors combined with image processing tools
create fully digital systems for angiography, cardiology, fluoroscopy, mammography, and general radiology.
Automatic exposure control systems control dosage during X-ray imaging. 3-D imaging technologies are being
applied to imaging including ultrasound and mammography. Newer MRI machines provide more detailed images
and reduced scan times via stronger magnets and compressed sensing technologies. Companies are selling more
software solutions to manage image data and are exploring adoption of artificial intelligence tools to analyze
images and assist with diagnosis processes.

Manufacturers use information technology systems to manage customer, business partner, and employee data,
as well as intellectual property. Digital X-rays are delivered immediately to physicians via electronic health
records (EHRs). Confidential patient data is part of EHRs and clinical trial systems. As the need for enhanced
security and faster processing grows, companies are integrating and upgrading internal data systems. Use of
enterprise resource planning (ERP) systems can improve component purchasing, inventory management, billing,
and other functions.

Sales & Marketing

Typical customers are hospitals, clinics, diagnostic imaging centers, physician groups, research facilities, and
equipment dealers or distributors. Many doctors, such as obstetricians, may have ultrasound equipment in their
offices, but generally send patients to imaging centers for scans.

Manufacturers employ sales teams to meet with customers and may attend professional meetings and
conferences to present their products. Because of the high prices for electromedical and electrotherapeutic
equipment, salespeople often hold engineering, nursing, or science degrees that enable them to foster
relationships with physicians and researchers as peers. Companies often use independent distributors to market
products outside the US.

Hospitals are joining group purchasing organizations (GPOs) to enhance buying power. GPOs can put pressure on
pricing and increase use of preferred vendors, making the sales process more challenging for manufacturers.

Finance & Regulation

Companies may spend 10% or more of annual sales on R&D, which plays a major role in the industry. Capital
expenditures can be high; some companies outsource some portion of their manufacturing processes to reduce
fixed costs and capital spending. The electromedical apparatus manufacturing industry is capital-intensive:
average annual revenue per employee in the US is about $450,000.

The working capital turnover ratio for the industry in the US averages about 40%. Receivables can be high,
averaging 90 days' sales, as medical facilities that depend on reimbursements from government health care
systems may be slow to pay. Inventory may become obsolete in the event of advances in technology, product
recalls, reduced demand because of safety concerns, or competitive product launches. For the industry in the
US, inventory typically represents about 170 days' sales.

Working Capital Turnover by Company Size

The working capital turnover ratio, also known as working capital to sales, is a measure of
how efficiently a company uses its capital to generate sales. Companies should be
compared to others in their industry.
 Financial industry data provided by MicroBilt Corporation collected from 32 different data sources and represents
financial performance of over 4.5 million privately held businesses and detailed industry financial benchmarks of
companies in over 900 industries (SIC and NAICS). More data available at www.microbilt.com.

Regulation

Medical devices in the US are regulated under the Food & Drug Administration’s (FDA) 510(k) and PMA
(pre-market approval) regulations, which ensure the safety and efficacy of a product. Some products are subject
to FDA radiation safety laws. Companies that sell their products internationally must also follow regional
regulations, such as the European Union’s CE Mark requirements for safety and performance.

The Affordable Care Act of 2010 (ACA) added new cost-control regulations and reporting requirements for
medical device companies. Patient data privacy laws established under the Health Insurance Portability and
Accountability Act of 1996 (HIPAA) were strengthened through the Health Information Technology for Economic
and Clinical Health Act (HITECH) of 2009. Companies must also comply with state and federal health care fraud
and abuse laws, maintain safe working conditions, and comply with environmental laws governing manufacturing
practices and hazardous materials disposal.

International Insights
Sales of electromedical and X-ray apparatus are strongest in established markets including the US, Western
Europe, and Japan. Growth is focused on developing nations such as India and China. Major companies based
outside the US include Hitachi Medical (Japan), Medtronic (Ireland), Sonova (Switzerland), Philips (Netherlands),
and Siemens Healthineers (Germany).

Demand for medical devices is driven by aging populations; rising occurrences of heart disease, cancer, and
other ailments; and growing awareness of medical treatment options. Advances in science and medicine have
led to more effective products, which also feeds demand. New radiation techniques for cancer treatment include
brachytherapy and proton therapy systems. Minimally invasive devices such as cardiac tissue ablation
catheters and endoscopic surgery systems reduce treatment and recovery times. While demand is high,
customers in emerging markets tend to purchase less-complex, lower-priced products than in developed nations.

Cardiovascular diseases, cancers, and respiratory conditions are the most common noncommunicable diseases,
which account for about 70% of all global deaths, according to the World Health Organization (WHO). Of the 41
million deaths attributed to noncommunicable diseases annually, more than three-fourths occur in developing
countries where access to advanced medical equipment is limited. The WHO is working to improve access to
medical technologies in low- and middle-income countries through local production and technology transfer
programs.

Companies with foreign distribution may rely on their international distribution partners to help ensure they
meet local regulations. Tariffs, duties, and import and export restrictions constrain international activities, and
reimbursement policies and programs can impact profits.

Regional Highlights
In the US, states with the most electromedical and electrotherapeutic products manufacturers include California,
Massachusetts, Florida, New York, and Minnesota. Irradiation apparatus manufacturers are concentrated in
California, Illinois, Florida, Massachusetts, and Pennsylvania.

Human Resources
The manufacture of electronic instruments, including electromedical products, is highly complex and technical,
and wages for the industry in the US are moderately higher than the national average. At the high end,
companies employ experienced electronics design engineers and scientists for product design as well as research
and development. Electronics technicians are paid significantly more than the national average; product
assemblers are paid slightly less. The injury rate for the industry is significantly lower than the national average.

Industry Employment Growth

Bureau of Labor Statistics

Average Hourly Earnings & Annual Wage Increase

Bureau of Labor Statistics

Industry Growth Rating

Demand: Driven by demographics and needs of health care industry

Need efficient operations and effective marketing
Risk: Shifting regulatory landscape

Industry Indicators
US consumer prices for medical care commodities, which may impact electromedical apparatus makers'
profitability, increased 1.0% in October 2019 compared to the same period in 2018.

US steel mill product prices, an indicator of commodity steel costs for medical device manufacturers, fell 13.1%
in October 2019 compared to the same month in 2018.
Industry Forecast
Revenue (in current dollars) for US electromedical device production is forecast to grow at an annual
compounded rate of 3% between 2019 and 2023, based on changes in physical volume and unit prices. Data
Published: August 2019

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic
Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the
economy captures the links between industries and the aggregate economy. Forecast FAQs

Industry Drivers
Changes in the economic environment that may positively or negatively affect industry growth.

Data provided by First Research analysts and reviewed annually

Technology Innovation Advances in science and technology, including information technology

Critical Issues
Highly Regulated Industry - The electromedical and X-ray apparatus manufacturing industry is highly regulated
at the federal and state levels. Devices must be approved by the FDA as well as international counterparts in
Europe and the rest of the world. Since many of these products use nuclear material, companies must meet
manufacturing safety and environmental regulations to prevent contamination. The FDA regularly inspects
manufacturing plants to make sure they meet quality regulations. The federal government and certain states
have also established laws requiring manufacturers to disclose payments to health care providers. Failure to
comply could result in criminal and civil penalties and the shutdown of manufacturing facilities.

Health Care Reform, Medicare, and Cost-Cutting - The uncertainties surrounding health care reform, including
a tax on some medical devices and an emphasis on cost containment, pose a significant challenge to
electromedical manufacturers. Additionally, ongoing pressure on health care providers to accept lower
reimbursement rates from Medicare could cause a decrease in demand for expensive tests such as MRIs and
CAT scans. Criticism of perceived excessive testing by doctors, so-called defensive medicine, may also reduce
demand.

Business Challenges
Health Care Industry Consolidation - Health care services providers are combining, both through mergers and
acquisitions and by joining purchasing groups, to boost their buying power. As a result, they are able to demand
pricing concessions from manufacturers. Combined with an atmosphere that calls for reducing high health care
costs, the pressure could squeeze manufacturer revenues and profits.

Product Recalls and User Error - The industry is vulnerable to recalls and end-user error due to the highly
complex and dangerous nature of the products. As recent reports of over-radiation of patients have shown, user
error can negatively impact manufacturers of radiological apparatus, even if their product was not faulty.
Lawsuits and bad publicity can arise from recalls and user mismanagement, which can significantly impact
revenues and a company or industry’s reputation.

High Cost of R&D - Electromedical equipment companies may spend more than 10% of their revenues on R&D,
without any certainty that profitable new products will result. Rapid industry innovation greatly increases the risk
of technological obsolescence. Companies must protect intellectual property to establish a competitive
advantage.

Business Trends
Safety Concerns over Radiation Exposure - Concerned over the cumulative effect of radiation exposure from
different sources, health and safety advocates are calling for lower doses of ionizing radiation in CT and PET
scans and X-rays. Ionizing radiation is linked to cancer risk, while nonionizing radiation used in MRIs and
ultrasounds is considered safer. Initiatives including Image Wisely and Image Gently ask doctors and radiologists
to prescribe the fewest number of tests possible to prevent overdosing patients with radiation. Reduced testing
could impact demand for manufacturers’ products.

Changes in Medical Best Practices - Changes in the practice of medicine can impact electromedical apparatus
manufacturers positively as well as negatively. For example, while a government panel determined in 2011 that
yearly mammograms may not save lives, a 2012 research study found that a screening ultrasound could
identify invasive breast cancer in high-risk women. Manufacturers can benefit from new research and new
findings and market their products accordingly.

Advances in Wireless Technology - Manufacturers of implantable medical devices and diagnostic equipment
are rapidly adopting wireless capabilities into their designs. With wireless technology, doctors and patients have
better access to real-time data from medical devices. For example, wireless technology in hearing aids allows
patients and doctors to remotely adjust volume and balance. Many pacemakers have wireless radio technology
that facilitates remote monitoring and management of the pacemaker.

Industry Opportunities
FDA Fast-Track Programs - The FDA issues fast-track programs to speed delivery of new medical technologies
or medicines, including several recent approval programs for medical devices. Fast-track designations facilitate
development and expedite review of products that treat serious conditions or fill an unmet need.

Market Expansion via Acquisition - Many companies actively seek acquisition opportunities as a strategy for
expanding their product pipeline and moving into new markets. A similar option is making investments and
forming alliances with other companies to benefit from their technology without investing expensive time,
research, and scientific expertise, which may not pay off. The rapid pace of advances in science and technology
makes it cost-prohibitive for a manufacturer to develop all of its products in-house.

Partnerships and Technology Transfer - The US Center for Devices and Radiological Health (CDRH) works
with industry and academic partners to keep abreast of changes in the field and to encourage innovation.
Companies can work with the CDRH and industry competitors to take part in technology and knowledge transfer.
Since the CDRH regulates the industry, it may benefit companies to have a close relationship with the agency.

Favorable Demographics - Global demographic changes favor the medical equipment industry, as aging
populations drive increases in heart disease, cancers, and other conditions requiring electromedical treatment.
The proportion of the world's population older than 60 will nearly double, from 12% to 22%, between 2015 and
2050, according to the WHO. The US population of those age 65 and older is expected to increase by about 49%
between 2016 and 2030, compared to a 10% increase in the population as a whole.

Executive Insight
Chief Executive Officer - CEO
Navigating a Complex Regulatory Environment
Manufacturers of electromedical equipment face a complex and changing regulatory environment. The FDA
continues to evolve regulations governing approval of new products, and the cost of development and regulatory
approval for new medical equipment is high. Companies must also meet standards for good manufacturing
practices (GMP). Executives must stay abreast of regulatory changes and develop effective responses to
maintain growth and profitability.

Controlling Medical Costs

Electromedical equipment manufacturers face strong pressure to reduce health care costs. Doctors are being
encouraged to reduce excessive diagnostic testing. The Centers for Medicare and Medicaid Services (CMS) is
making changes to hospital reimbursement rates and models that may discourage purchases of innovative
medical technologies.

Chief Financial Officer - CFO

Funding Research Programs
R&D plays a major role in the medical equipment industry. Companies may spend 10% or more of annual sales
on researching and developing new products. Rapidly evolving technology creates intense competition among
manufacturers to create more efficient and accurate diagnostic equipment. Inventory may quickly become
obsolete.

Financing Acquisition Opportunities

Companies often expand their product offerings through licensing or acquisition deals. Manufacturers must have
access to the financial resources required to take advantage of potential purchases. Companies must choose the
proper mix of self-generated cash, new equity, and debt financing to fulfill capital needs and meet expectations
of investors and lenders.

Chief Information Officer - CIO

Integrating Supply Chain Systems
Manufacturers are lowering costs and reducing lead times by implementing software systems that manage
inventory, purchasing, billing, and other processes. Manufacturers of medical equipment are also being required
to integrate with the supply chain management systems of distributors or hospitals to deliver needed equipment
efficiently.

Implementing Health Care IT

Health care IT and electronic health records (EHRs) permit the online capture of patient diagnostics. Diagnostic
equipment and image management programs must talk to EHR systems while keeping patient data confidential
and secure. Providers are implementing health care IT and EHR based on government-supported expectations
that the systems will eventually lower costs and improve health care quality by helping to reduce medical errors.

Human Resources - HR
Recruiting Skilled Employees
Companies compete intensely with other medical equipment manufacturers to attract and retain qualified
personnel, including engineering, sales, and service staff. Research specialists are essential to the success of
technological innovation. Staffing departments must offer competitive compensation, benefits, and rewards
programs.

Developing Successful Training Programs

Equipment manufacturers require a large base of employees with technical education or experience in the
sciences and engineering. To develop future professionals, companies recruit graduate and undergraduate college
students and enroll them in intern and co-op programs. Companies that have acquired competitors or new
technology programs must successfully merge cultures and HR systems.

VP Sales/Marketing - Sales
Building Physician Relationships
Physicians are not only key customers for medical equipment, but also serve as consultants for the design of
new products and development of marketing programs. Companies rely on doctors for feedback on how products
are used, and their professional expertise is important in clinical trials and regulatory submissions. Manufacturers
must build and maintain strong relationships with physicians who specialize in the medical areas targeted by their
new products.

Negotiating with Buying Groups

To reduce the cost of medical equipment, many hospitals in the US now buy through groups. These buying
groups may offer exclusive contracts to suppliers in exchange for price discounts. Companies also gain
bargaining power through consolidation. Sales teams for manufacturers of medical supplies and devices must
successfully negotiate contract terms with buying groups to retain access to the hospital market while also
meeting profit goals.

Executive Conversation Starters

Chief Executive Officer - CEO

How do changing and complex regulations challenge the company?
Complex and changing regulations affect the development, manufacture, and sale of, and insurance
reimbursement rates for, medical supplies and devices.

How does health care reform affect the company?

Government health care reform efforts are changing the ways that medical care is paid for.

Chief Financial Officer - CFO

How much of the company's expenses goes toward research?
Manufacturers must keep up with new technologies to compete.

What financing methods work best to fund the company's acquisitions or other expansions?
Companies choose the proper mix of self-generated cash, new equity, and debt financing to fulfill capital needs
and meet investor expectations.

Chief Information Officer - CIO

How is the company improving processes with software?
Integrating with software systems of suppliers, distributors, and customers can improve supply chain
efficiencies.

What steps has the company taken to support the implementation of health care IT?
Implementation of health care IT is expected to lower costs and improve health care quality by helping to reduce
medical errors.

Human Resources - HR
How successfully has the company recruited specialists?
Companies develop attractive benefit packages tailored to recruit specialists.

What intern programs has the company established?

Companies may choose to recruit and mentor interns to encourage them to return upon graduation.

VP Sales/Marketing - Sales
How important are physician relationships to the company's product and sales strategies?
As key end-users, physicians give input on new product design and marketing and are important in clinical trials
and regulatory submissions.

What challenges does the company have in negotiating with hospital buying groups?
Many US hospitals buy supplies through groups, which have the purchasing power to command discounts.

Call Prep Questions

Conversation Starters
How does regulation impact the company's marketing and operations?
The electromedical and X-ray apparatus manufacturing industry is highly regulated at the federal and state levels.

How has health care reform affected the company?

The uncertainties surrounding health care reform, including a tax on some medical devices and an emphasis on
cost containment, pose a significant challenge to electromedical manufacturers.

What effect has the health care industry trend of banding together in purchasing groups had on the
company's revenues?
Health care services providers are combining, both through mergers and acquisitions and by joining purchasing
groups, to boost their buying power.

What strategies have helped the company get products approved for sale as efficiently as possible?
The FDA issues fast-track programs to speed delivery of new medical technologies or medicines, including
several recent approval programs for medical devices.

What percentage of the company's products come from acquisitions vs. in-house development?
Many companies actively seek acquisition opportunities as a strategy for expanding their product pipeline and
moving into new markets.

What role do government and industry partnerships play in the company's development process?
The US Center for Devices and Radiological Health (CDRH) works with industry and academic partners to keep
abreast of changes in the field and to encourage innovation.

Financial Information

COMPANY BENCHMARK TRENDS

Quick Ratio by Company Size

The quick ratio, also known as the acid test ratio, measures a company's ability to meet short-term obligations
with liquid assets. The higher the ratio, the better; a number below 1 signals financial distress. Use the quick ratio
to determine if companies in an industry are typically able to pay off their current liabilities.

Financial industry data provided by MicroBilt Corporation collected from 32 different data sources and represents financial performance of over
4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS). More
data available at www.microbilt.com.

Current Liabilities to Net Worth by Company Size

The ratio of current liabilities to net worth, also called current liabilities to equity, indicates the amount due
creditors within a year as a percentage of stockholders' equity in a company. A high ratio (above 80 percent) can
indicate trouble.
Financial industry data provided by MicroBilt Corporation collected from 32 different data sources and represents financial performance of over
4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS). More
data available at www.microbilt.com.

COMPANY BENCHMARK INFORMATION

NAICS: 334510, 334517

Data Period: 2018 Last Update November 2019

Table Data Format Mean

Company Size All Large Medium Small

Size by Revenue Over $50M $5M - $50M Under $5M

Company Count 2863 41 266 2556

Income Statement

Net Sales 100% 100% 100% 100%

Gross Margin 59.0% 57.1% 61.3% 63.5%

Officer Compensation 4.4% 4.1% 4.7% 5.3%

Advertising & Sales 1.7% 1.6% 1.8% 1.8%

Other Operating Expenses 51.9% 50.5% 53.8% 55.0%

Operating Expenses 58.0% 56.3% 60.3% 62.1%

Operating Income 1.0% 0.8% 1.0% 1.4%

Net Income 0.8% 0.7% 0.9% 1.1%

Balance Sheet

Cash 19.6% 17.8% 23.2% 22.2%

Accounts Receivable 24.6% 26.4% 21.2% 22.2%

Inventory 18.3% 19.1% 16.5% 18.0%

Total Current Assets 68.9% 69.2% 67.7% 69.4%

Property, Plant & Equipment 8.1% 7.3% 10.0% 8.5%

Other Non-Current Assets 23.0% 23.5% 22.3% 22.1%

Total Assets 100.0% 100.0% 100.0% 100.0%

Accounts Payable 10.6% 10.9% 10.4% 9.7%

Total Current Liabilities 29.0% 30.2% 27.2% 26.6%

Total Long Term Liabilities 23.9% 23.9% 23.9% 24.1%

Net Worth 47.1% 45.9% 49.0% 49.4%

Financial Ratios

Quick Ratio 1.58 1.51 1.69 1.74

Current Ratio 2.38 2.30 2.49 2.61

Current Liabilities to Net Worth 61.5% 65.6% 55.5% 53.8%

Current Liabilities to Inventory x1.58 x1.58 x1.65 x1.47

Total Debt to Net Worth x1.12 x1.18 x1.04 x1.03

Fixed Assets to Net Worth x0.17 x0.16 x0.20 x0.17

Days Accounts Receivable 84 91 72 71

Inventory Turnover x2.41 x2.39 x2.52 x2.33

Total Assets to Sales 95.4% 96.7% 95.4% 89.4%

Working Capital to Sales 38.1% 37.8% 38.7% 38.3%

Accounts Payable to Sales 10.1% 10.5% 9.8% 8.6%

Pre-Tax Return on Sales 1.3% 1.1% 1.4% 1.7%

Pre-Tax Return on Assets 1.3% 1.2% 1.5% 1.9%

Pre-Tax Return on Net Worth 2.8% 2.5% 3.1% 3.9%

Interest Coverage x1.10 x1.12 x0.96 x1.36

EBITDA to Sales 3.9% 3.7% 4.1% 4.5%

Capital Expenditures to Sales 3.4% 3.3% 3.7% 3.5%

Financial industry data provided by MicroBilt Corporation collected from 32 different data sources and represents financial performance of over
4.5 million privately held businesses and detailed industry financial benchmarks of companies in over 900 industries (SIC and NAICS). More
data available at www.microbilt.com.

ECONOMIC STATISTICS AND INFORMATION

Index of Industrial Production - Federal Reserve Board
VALUATION MULTIPLES

No valuation multiples available for this industry.

Industry Websites
Center for Devices and Radiological Health
Regulations and other information.

COCIR
European Coordination Committee of the Radiological, Electromedical and Healthcare IT Industry

DITTA
Global diagnostic imaging, health care IT and imaging therapy trade association

International Society for Magnetic Resonance in Medicine

Professional organization with news and resources.

Medical Device Manufacturers Association

Trade news and information, public issues, and advocacy.

NEMA (Association of Electrical Equipment and Medical Engineering Manufacturers)

News, events, policy issues.

Glossary of Acronyms
CAT - Computerized axial tomography

CT - Computerized tomography

FDA - Food and Drug Administration

ISO - International Standards Organization

MRI - Magnetic resonance imaging

PET - Positron emission tomography

PMA - Pre-market approval