Cancer-care services provider US Oncology, Houston, and behavioral health manager Magellan Health Services, Farmington, Conn., both reported significant increases in profits and revenue for the quarter ended March 31. US Oncology said its first-quarter net income increased 23.8% to $20.1 million, or 23 cents per share, as strong demand fueled a 15.4% growth in net operating revenue to $662.6 million. In the year-ago quarter, the company earned $16.3 million, or 17 cents per share, on $574.1 million in net operating revenue. US Oncology also said it would vigorously defend itself against shareholder lawsuits challenging the company's proposed $1.7 billion buyout by investment firm Welsh, Carson, Anderson & Stowe and might schedule a stockholder vote for late June or early July.
Magellan, which exited Chapter 11 bankruptcy earlier this year, reported a first-quarter profit of $12.9 million, or 35 cents per share, on net revenue of $440.2 million. In the year-ago quarter, Magellan lost $12.4 million, or 46 cents per share, on net revenue of $409 million. The company projected 2004 net income of $36 million to $56 million and said that through the remainder of the year, it planned to make significant investments in product development and other initiatives to enhance its prospects for long-term growth. -- by Julie Piotrowski