RadNet Inc. on Tuesday reported a significantly smaller third quarter loss as revenue increased from its growing chain of medical imaging facilities. But the adjusted results still missed Wall Street expectations.

The Los Angeles company, which owns 192 outpatient imaging centers in California and four other states, reported a net loss of $280,000 (-1 cent per share) compared with a loss of $1.72 million (- 5 cents) a year earlier. Net revenue rose 5 percent to $140 million.

Excluding losses from interest rate swaps, disposal of equipment and stock compensation expense, adjusted net income was $1.8 million (5 cents). Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 6 cents on revenue of more than $142 million.

Chief Executive Howard Berger said: “We are continuing to find ways to improve the efficiency of our general operating activities and maintain growth, despite industry statistics reporting a decrease in physician office visits and a difficult economy in 2010.”

Shares were down 9 cents, or 3.7 percent to $2.36 in midday trading on the Nasdaq.