Hologic shows Q1 revenue gain, profit downturn

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Hologic reported a triple-digit increase in revenues for the firm’s 2008 fiscal first quarter (end-Dec. 29, 2007), yet showed net losses for the period – which the firm attributed to its acquisition of Cytyc in October last year.

The company reported unaudited revenues of $371.4 million, a 128 percent increase for the quarter compared with revenues of $163.2 million in the same period the prior fiscal year. The sales surge was primarily attributable to the inclusion of Cytyc revenues for the period from Oct. 22, 2007 (the merger date) to Dec. 29, 2007, which approximated $158 million, according to the Bedford, Mass.-based Hologic.

In contrast to its positive revenue growth, Hologic posted a net loss of $358.6 million for the fiscal 2008 first quarter, a sharp decrease compared with the net income of $16.1 million the firm stated in the fiscal 2007 first quarter.

The company attributed the net loss to the $370 million Cytyc merger, acquired in-process research and development costs, $41.5 million attributable to the increase in cost of revenues relating to the write-up of inventory to fair market value, and $20.4 million attributable to the amortization of intangibles.