Philips Launches New X-Ray System - Analyst Blog

At the 96th annual meeting of the Radiological Society of North America (RSNA) in Chicago, Royal Philips Electronics (PHG) revealed its two adaptable diagnostic X-ray solutions, Juno DRF and the DigitalDiagnost - ER Wireless X-ray system. Both these integrated technologies from Phillips Healthcare enhance its product offering providing cost-effective healthcare solutions to patients, particularly in the emergency situation.

DigitalDiagnost - ER Wireless system provides a keen digital radiography result for emergency room, recovery and trauma environments. The wireless system is easy to handle and causes least interference to life-saving equipments.

Juno DRF is a remote-controlled flat detector system and is a combination of digital radiography and fluoroscopy applications, thus providing solutions in a number of diagnostic procedures like radiographic procedures, gastro-intestinal studies, tomography and vascular studies. Though Juno DRF system was available in Western Europe from January 2010, it has been launched for the first time in the US.

Recently, GE Healthcare, a unit of General Electric (GE), also showcased its next generation wireless, digital X-ray detector at the RSNA meeting. The new device, called FlashPad, received the 510k clearance from the US Food and Drug administration and is the sole wireless digital detector, which can aid advanced applications like VolumeRAD and Dual Energy Subtraction. This sophisticated, next-gen detector is compatible across a wide range of GE X-ray products.

Philips is actively restructuring its portfolio to better focus on healthcare, lighting and lifestyle markets with several recently focused acquisitions and divestments, which bodes well for the company going forward. The company's continued ability to increase cash flow by higher earnings, partially offset by lower inflow from working capital, has helped to sustain investments in growth initiatives while maintaining a strong balance sheet.

However, Philips' global presence exposes the company to regional and local regulatory rules, which may interfere with the realization of business opportunities and investments in the countries in which it operates. Philips' overall performance in the coming years depends on realizing its growth ambitions in the emerging markets.

Headquartered in Amsterdam, The Netherlands, Royal Philips Electronics is one of the world's largest electronics companies and the biggest in Europe, with sales of €26.4 billion in 2008 and €23.2 billion in the full year of 2009. The company is divided into five distinct business sectors after the sale of the semiconductor division: Healthcare, Consumer Lifestyle, Lighting, Innovative & Emerging Businesses (I&EB) and Philips Group Management & Services (GMS). Philips employs above 117,000 employees in more than 60 countries worldwide.

We currently maintain our Neutral rating for the long term on Philips, with a Zacks #2 Rank (short-term Buy recommendation) over the next one-to-three months.

 
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