Stock Profile: A.L.I. Technologies Inc. Symbol: ALT (TSE)

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Stats as of 9/07/01

• H/L Ratio: 3.71 • RS: 94.8 • Shares: 10,532,508 • P/E: 18.4 (based on recent quarter) • Price: $8.10

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A.L.I. Technologies is the world leader in development and installation of filmless diagnostic imaging management systems for the healthcare industry. The company introduced the idea of a picture archiving and storage system (PACS) based on personal computer client/server technology in 1988. The system was given pre-market notification clearance (I guess that's bureaucratese for approval) by the US FDA in 1993. At the time, the ALI UltraPACS system focused on ultrasound picture archiving. It has since evolved to include radiology (1999) and cardiology (2000). Images are collected, archived and distributed using local and wide area networks and the Internet.

Over 300 million medical images from x-rays to ultrasounds are taken each year in the United States. Management and reporting costs exceed US $20 an image. ALI's solutions offer cost efficiencies and improved productivity, but even with the largest installed base of 500 systems, the company has barely scratched the surface of this huge market. Industry surveys show that 50% of hospitals intend to upgrade to digital imaging network systems in the next four years.

The company has forged strategic alliances with four of the top five ultrasound equipment manufacturers as well as other medical imaging specialists. These include Agilent Technologies, ATL Ultrasound, Camtronics Medical Systems, GE Medical Systems, Imaging Dynamics, Siemens Ultrasound, Sonosite, Vital Images and Webmedx. Installed systems include such notable clients as the Mayo Clinic, the Loma Linda University Medical Center, and the Johns Hopkins University Medical Center, recognized leaders on the cutting edge of evolving technology.

Besides its integrated marketing efforts with OEMs and suppliers of information systems, ALI has an in-house sales force.

A.L.I. Technologies made the Deloitte & Touche Fast Fifty list of Canada's fastest growing companies for three years running from 1998 to 2000. But the company ran in the red for 1999 and 2000 with share price dropping from a high of $24.00 in May 1998 to a low of $2.26 in December 2000. Since then, the company has started generating both profits and share price growth and is one of the top ten performers on the TSE for the year-to-date. It is only one of two in the top ten YTD that trades above $5. ALI could well be poised to become the growth stock for 2002.

The company changed its accounting procedures recently to recognize sales when installations have been approved by customers rather than when shipped. The quarterly earnings below, therefore, compare the two most recent quarters rather than year-over-year growth. The P/E in the box above right is based on current quarterly EPS of $0.11 extrapolated to a year ($0.44).

Quarterly Earnings per Share

Annual Earnings per Share