News


Hologic Announces First Quarter Fiscal 2005 Operating Results
Revenues and Backlog Increase to Record Highs
PRNewswire-FirstCall
BEDFORD, Mass.

BEDFORD, Mass., Jan. 26, 2005 /PRNewswire-FirstCall/ -- Hologic, Inc. (NASDAQ: HOLX), a leading provider of diagnostic imaging and state-of-the-art digital imaging systems directed towards women's health, today announced its results for the quarter ended December 25, 2004.

  Highlights of the quarter include:
  * Record revenues of $66.2 million.
  * Record backlog of $74.1 million.
  * Record 50 Selenia full field digital mammography systems installed and
    recognized as revenue.

First quarter fiscal 2005 revenues totaled $66,176,000, a 33% increase when compared to revenues of $49,882,000 in the first quarter of fiscal 2004. For the first quarter of fiscal 2005, Hologic reported net income of $4,574,000, or $0.21 per diluted share, compared with net income of $1,040,000, or $0.05 per diluted share, in the first quarter of fiscal 2004. The improvement in earnings primarily reflects the increase in revenues, chiefly in the mammography segment as product sales of Selenia digital mammography systems, analog mammography systems and MultiCare breast biopsy tables all increased in the quarter as compared to the first quarter of fiscal 2004.

As expected, the Company fully absorbed in the current quarter the entire expenses of approximately $1.7 million associated with its exhibit at the Radiological Society of North America ("RSNA") medical imaging trade show held in December 2004 which was up slightly from the $1.6 million spent in the first quarter of 2004.

During the first quarter, Hologic installed and recognized as revenue, 50 Selenia full field digital mammography systems. At December 25, 2004, the Company's backlog for orders of Selenia was 104 systems and total backlog for all products increased to over $74 million, the highest quarterly backlog in the Company's history and a 22% increase over the backlog at September 25, 2004.

"We had an excellent first quarter, building on the strong momentum we achieved in fiscal 2004," said Jack Cumming, Chairman and CEO. "Our revenue and backlog were both up sharply from one quarter ago as we continue to outpace our expectations. These results were driven by the continued demand for our Selenia full field digital mammography system as more customers are making Hologic their first choice. Our organization remains focused on operational excellence and financial discipline. Looking ahead, our outlook for the rest of fiscal 2005 reflects continued strong revenue growth."

  First quarter financial overview by segment:
  * Mammography revenues increased 64% to $36,786,000 for the first quarter
    of fiscal 2005 from $22,487,000 for the same period in fiscal 2004.
    This increase was primarily due to continued increasing sales of
    Selenia in the domestic market and, to a lesser extent, an increase in
    sales of analog mammography systems and MultiCare breast biopsy tables.
    Operating income for this business segment in the first quarter of
    fiscal 2005 increased to $3,010,000 compared to operating income of
    $397,000 in the first quarter of fiscal 2004.  This increase in
    operating income in the current quarter was primarily due to the
    significant increase in revenues and the higher gross margins on
    increasing product sales of Selenia.
  * Osteoporosis assessment revenues increased 4% to $17,163,000 for the
    first quarter of fiscal 2005 from $16,555,000 for the same period in
    fiscal 2004.  This increase was primarily due to an increase in the
    number of bone densitometry systems sold and an increase in service
    revenue.  Operating income for this business segment in the first
    quarter of fiscal 2005 increased slightly to $1,633,000 from $1,591,000
    in the first quarter of fiscal 2004.
  * Digital detector revenues increased 209% to $5,312,000 for the first
    quarter of fiscal 2005 from $1,718,000 for the same period in fiscal
    2004.  This increase was primarily due to a significant increase in the
    number of general radiography and mammography digital detectors sold to
    other OEMs.  Operating loss for this business segment in the first
    quarter of fiscal 2005 decreased to $1,173,000 from $1,582,000 in the
    first quarter of fiscal 2004.  The decrease in operating loss in the
    current quarter was primarily due to increased margin from the higher
    sales volume, offset in part by an increase in research and development
    expenses.
  * All other revenues which includes the Company's mini C-arm, conventional
    general radiography service and digital general radiography systems
    businesses decreased 24% to $6,915,000 for the first quarter of fiscal
    2005 from $9,122,00 for the same period in fiscal 2004.  The decrease
    in revenues was primarily due to the shipment of fewer digital general
    radiography systems as this business is currently being phased out.
    Operating income for this business segment in the first quarter of
    fiscal 2005 increased to $1,120,000 from $655,000 in the first quarter
    of fiscal 2004.  This increase in operating income in the current
    quarter was primarily due to a reduction in the operating expenses
    allocated to the digital general radiography systems business.

Hologic's management will host a conference call today at 10:00 a.m. (Eastern) to discuss first quarter fiscal 2005 operating results. Interested participants may listen to the call by dialing 800-967-7135 or 719-457-2626 for international callers and referencing code 238345 approximately 15 minutes prior to the call. For those unable to participate in the live broadcast, a replay will be available one hour after the call ends through January 28, 2005 at 888-203-1112 or 719-457-0820 for international callers, access code 238345. The Company will also provide a live webcast of the call on the investor relations page of the Company's website at http://www.hologic.com/investor. A replay of the call will also be available on the investor relations page of the Company's website http://www.hologic.com/investor shortly after the completion of the live broadcast.

Hologic, Inc. is a leading developer, manufacturer and supplier of premium diagnostic and medical imaging systems dedicated to serving the healthcare needs of women, and a leading developer of innovative imaging technology for digital radiography and breast imaging. Hologic's resources are focused on developing systems with superior image quality and diagnostic accuracy while providing exemplary customer service. This focus has enabled the Company to capture significant market share in its core niches against large, multinational companies, while engendering intense customer loyalty. Hologic's core business units are focused on osteoporosis assessment, breast cancer detection, direct capture x-ray detectors for digital radiography applications and mini C-arm imaging for orthopedic applications. Hologic's product lines are premier brands in their markets and command leading market positions. For more information on Hologic, please visit the Company's website at http://www.hologic.com/.

This News Release contains forward-looking information that involves risks and uncertainties, including statements regarding the Company's plans, objectives, expectations and intentions. Such statements include, without limitation, statements regarding: the Company's prospects for future sales growth, product offerings, product demand and competitive position; and any implication that the Company's backlog may be indicative of future sales. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated. The Company's backlog consists of purchase orders for which delivery is scheduled within the next twelve months, as specified by the customer. In certain circumstances, orders included in backlog may be canceled or rescheduled by customers without significant penalty. Therefore, backlog as of any particular date should not be relied upon as indicative of the Company's net revenues for any future period. Other factors that could cause actual results to materially differ include, without limitation, manufacturing risks that may limit the Company's ability to ramp-up commercial production of the Selenia and other of the Company's digital products, including the Company's reliance on a single source of supply for some key components of its products as well as the need to comply with especially high standards for those components and in the manufacture of digital X-ray products in general; uncertainties inherent in the development of new products and the enhancement of existing products, including technical and regulatory risks, cost overruns and delays; the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; the Company's ability to predict accurately the demand for its products, and products under development, and to develop strategies to address its markets successfully; the early stage of market development for digital X-ray products; risks relating to compliance with financial covenants under the Company's working capital financing and leases; technical innovations that could render products marketed or under development by the Company obsolete; competition; and reimbursement policies for the use of the Company's products. Other factors that could adversely affect the Company's business and prospects are described in the Company's filings with the Securities and Exchange Commission. Hologic expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.

                      HOLOGIC, INC. AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS
                               (Unaudited)
                              (In thousands)

                                  ASSETS

                                                December 25,   September 25,
                                                     2004           2004
  CURRENT ASSETS:
   Cash and cash equivalents                       $72,702        $68,335
   Accounts receivable, net                         51,786         48,409
   Inventories                                      34,806         40,174
   Prepaid expenses and other current assets         9,339          9,135
    Total current assets                           168,633        166,053

  Property and equipment, net                       34,234         32,877
  Intangible assets, net                             5,961          6,251
  Goodwill                                           6,285          6,285
  Other assets, net                                    584            285
                                                  $215,697       $211,751

                   LIABILITIES AND STOCKHOLDERS' EQUITY

                                                 December 25,  September 25,
                                                      2004           2004

  CURRENT LIABILITIES:
   Current portion of note payable                    $473           $475
   Accounts payable                                  9,680         10,546
   Accrued expenses                                 18,977         20,970
   Deferred revenue                                 13,206         13,013
    Total current liabilities                       42,336         45,004

  Notes payable, net of current portion                354            472

  STOCKHOLDERS' EQUITY:
   Common stock, $.01 par value-
    Authorized - 30,000 shares
    Issued - 20,799 and 20,585 shares, respectively    208            206
   Capital in excess of par value                  151,345        149,452
   Retained earnings                                22,770         18,196
   Cumulative translation adjustment                  (852)        (1,115)
   Treasury stock, 45 shares at cost                  (464)          (464)
    Total stockholders' equity                     173,007        166,275
                                                  $215,697       $211,751


                      HOLOGIC, INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF INCOME
                               (Unaudited)
                  (In thousands, except per share data)

                                                     Three Months Ended
                                                 December 25,   December 27,
                                                     2004           2003


  REVENUES                                         $66,176        $49,882


  COSTS AND EXPENSES:
   Cost of revenues                                 41,968         30,460
   Research and development                          4,350          4,036
   Selling and marketing                             9,248          9,031
   General and administrative                        6,020          5,294

                                                    61,586         48,821

    Income from operations                           4,590          1,061

  Interest income                                      259            108

  Interest expense/other income (expense)               19           (91)

   Income before provision for income taxes          4,868          1,078

  Provision for income taxes                           294             38

   Net income                                       $4,574         $1,040

  Net income per common and common equivalent share:
   Basic                                             $0.22         $ 0.05
   Diluted                                           $0.21         $ 0.05

  Weighted average number of common shares
   outstanding:
   Basic                                            20,647         19,979
   Diluted                                          21,761         20,897


  Contact:
   Glenn P. Muir                      Frances Crecco
   Executive Vice President & CFO     Director, Investor Relations
   Hologic, Inc.                      Hologic, Inc.
   (781) 999-7300                     (781) 999-7377

SOURCE: Hologic, Inc.

CONTACT: Glenn P. Muir, Executive Vice President & CFO, +1-781-999-7300,
or Frances Crecco, Director, Investor Relations, +1-781-999-7377 both of
Hologic, Inc.

Web site: http://www.hologic.com/