Hologic posts losses for Q4, despite some benefits from Cytyc acquisition

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Hologic, a developer and supplier of medical imaging systems and surgical products for women’s healthcare needs, has reported its results for the fourth fiscal quarter of 2008 that ended Sept. 27.

For the quarter, Hologic booked a net loss of $144.4 million, compared with net income of $32.1 million, in the fourth quarter of fiscal 2007.

Included in the quarter results were charges relating to the Third Wave acquisition of: $195.2 million attributable to acquired in-process research and development costs; $3.9 million attributable to the increase in cost of revenues relating to the write-up of inventory to fair market value; $1.1 million attributable to the amortization of intangibles; and $500,000 of stock-based compensation incurred in connection with the termination of former Third Wave executives. Also, the company said that a charge of $25.5 million attributable to the amortization of intangibles relating to the Cytyc merger was included.  

Fourth quarter fiscal 2008 revenues totaled $442.5 million, a 118 percent increase when compared to revenues of $202.6 million in the fourth quarter of fiscal 2007. According to the company, the increase was primarily attributable to the inclusion of approximately $195.5 million of revenues from the diagnostic, surgical and MammoSite product lines acquired in the merger with Cytyc on Oct. 22, 2007.

“We continue to focus on broadening our installed base of digital mammography systems both domestically and internationally, as well as further penetrating the international market for our ThinPrep franchise. We are also pleased with the continued recovery of our NovaSure product line during the last two quarters,” said Rob Cascella, president and chief operating officer of the Bedford, Mass.-based Hologic.

However, Chairman and CEO Jack Cumming noted that “fiscal 2008 was a challenging year for Hologic…In fiscal 2009 we have several challenges including the integration of our two recent acquisitions and a fragile global economic environment.”