Hologic sees upswing in Q1, but cautions for 2009 outlook

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Hologic, a developer, manufacturer and supplier of diagnostics, medical imaging systems and surgical products for women's healthcare needs, has reported positive results for its fiscal 2009 first quarter, which ended Dec. 27, 2008.

For the period, the Bedford, Mass.-based Hologic reported a net income of $48 million, compared with a net loss of $358.6 million in the year-ago 2008 quarter. Included in the first quarter of fiscal 2009 results were charges of $42.5 million and $2.1 million attributable to the amortization of intangibles relating to its Cytyc merger and Third Wave acquisition, respectively, and $600,000 attributable to the increase in cost of revenues relating to the write-up of Third Wave inventory to fair value. Also included were a full quarter of operating expenses of $11.4 million from Third Wave.

The company said its revenues totaled $429.2 million for the first quarter, a 16 percent increase when compared with revenues of $371.4 million in the first quarter of fiscal 2008. The increase was primarily attributable to the inclusion of 13 weeks of revenues from the diagnostics, surgical and MammoSite product lines acquired in the merger with Cytic, as compared to 10 weeks in the first quarter of fiscal 2008. Also contributing to the increase in revenues was a $12.5 million, or 34 percent, increase in service and other revenues primarily related to its Selenia full-field digital mammography sales, as well as revenues of $8.5 million from its acquisition of Third Wave in July 2008.

“As we stated in our preliminary earnings release on Jan. 12, this year will be challenging for us, as many drivers of our business remain uncertain,” said Jack Cumming, chairman and CEO of Hologic. “We witnessed an unprecedented decline in demand for capital equipment at the end of the first quarter, which impacted sales of our Selenia digital mammography systems among our hospital customers…Our focus continues to be on our three new products submitted to the FDA for approval and on our long-term goals.”