Hologic's Q1 hurt by mammo sales decline

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Hologic, a developer of diagnostics products and medical imaging systems for women’s healthcare, reported a drop in profits for the first quarter of 2010, which ended Dec. 26, 2009.

The 2010 first quarter net income was $26.1 million, calculated in accordance with generally accepted accounting principles (GAAP), compared with net income of $38.2 million in the first quarter of fiscal 2009, according to the Bedford, Mass.-based company.

Hologic said its first quarter fiscal of 2010 revenues totaled $412.4 million, a decrease of 3.9 percent when compared with revenues of $429.2 million in the first quarter of fiscal 2009. The company primarily attributed the decrease to the decline in sales of Selenia full-field digital mammography systems, as the company "did not realize the full impact of the declining economic environment and the resulting delays and reductions in hospital capital spending until the second quarter of fiscal 2009."

Its breast health revenues, which include the company’s mammography, computer-aided detection, breast biopsy, MammoSite and AEG products, totaled $179.1 million for the first quarter of fiscal 2010 compared to $199.1 million for the same period in fiscal 2009. According to the company, this decrease was primarily due to fewer Selenia systems sold during the first quarter of fiscal 2010 as compared to the first quarter of fiscal 2009, as well as product mix and configuration differences, which combined, resulted in a reduction in Selenia product revenues.

Also, Hologic had $7.5 million less in revenues in the current quarter as compared to first quarter of fiscal 2009 as a result of our phasing out the supply of digital detectors to an OEM and closing the AEG organic photoconductor drum coatings manufacturing operations in Shanghai. This decrease in revenues was partially offset by an increase in service revenues related to the increased installed base of Selenia full-field digital mammography systems and, to a lesser extent, an increase in revenues from our breast biopsy products, according to the company.

The company expects second quarter fiscal 2010 revenues to be approximately $410 million to $415 million, comparable with the first quarter of fiscal 2010 and up from $402 million for the second quarter of fiscal 2009.