Hologic books Q3 downturn on digital mammo sales slump
Hologic, a developer and supplier of diagnostics, medical imaging systems and surgical products that focus on women's healthcare needs, has shown a slump in revenues and income for the firm's fiscal 2009 third quarter, which ended June 27.
The Bedford, Mass.-based company booked a third quarter 2009 net income of $41 million, compared with $61 million in the year-ago quarter. Included in third quarter fiscal 2009 results were charges of $48 million attributable to the amortization of intangibles relating to the Cytyc merger and the Third Wave acquisition and, in addition, a full quarter of costs and expenses from Third Wave. Hologic said the charges related to the Cytyc merger of $25.1 million was attributable to the amortization of intangibles and a restructuring charge of $6.4 million in connection with the resignation of the company's executive chairman in May 2008, but there were no expenses attributable to Third Wave in the third quarter of fiscal 2008.
Third quarter fiscal 2009 revenues totaled $403.1 million, a 6.1 percent decrease when compared with revenues of $429.5 million in the third quarter of fiscal 2008. Hologic primarily attributed the decrease to the year-over-year decline in sales of Selenia full-field digital mammography systems. "We believe this decline was due in large part to the current economic environment and the resulting delays and reductions in hospital capital spending and longer sales cycles," the company said.
"We continue to feel the ongoing impact of the economic environment, primarily within our breast health segment, however these results were in-line with our expectations," said Jack Cumming, Hologic's chairman and CEO.
The Bedford, Mass.-based company booked a third quarter 2009 net income of $41 million, compared with $61 million in the year-ago quarter. Included in third quarter fiscal 2009 results were charges of $48 million attributable to the amortization of intangibles relating to the Cytyc merger and the Third Wave acquisition and, in addition, a full quarter of costs and expenses from Third Wave. Hologic said the charges related to the Cytyc merger of $25.1 million was attributable to the amortization of intangibles and a restructuring charge of $6.4 million in connection with the resignation of the company's executive chairman in May 2008, but there were no expenses attributable to Third Wave in the third quarter of fiscal 2008.
Third quarter fiscal 2009 revenues totaled $403.1 million, a 6.1 percent decrease when compared with revenues of $429.5 million in the third quarter of fiscal 2008. Hologic primarily attributed the decrease to the year-over-year decline in sales of Selenia full-field digital mammography systems. "We believe this decline was due in large part to the current economic environment and the resulting delays and reductions in hospital capital spending and longer sales cycles," the company said.
"We continue to feel the ongoing impact of the economic environment, primarily within our breast health segment, however these results were in-line with our expectations," said Jack Cumming, Hologic's chairman and CEO.