News


Hologic Announces Fourth Quarter and Fiscal 2004 Operating Results
Revenues, Earnings and Backlog Increase to Record Highs
PRNewswire-FirstCall
BEDFORD, Mass.

BEDFORD, Mass., Nov. 10, 2004 /PRNewswire-FirstCall/ -- Hologic, Inc. (NASDAQ: HOLX), a leading provider of women's diagnostic imaging systems and state-of- the-art digital imaging systems, today announced its results for the quarter and year ended September 25, 2004.

  Highlights of the quarter include:
  * Record revenues of $63.9 million.
  * Record earnings of $5.2 million.
  * Record backlog of $61 million.
  * Record cash flow of over $11 million.
  * Record 44 Selenia full field digital mammography systems installed and
    recognized as revenue.

Fourth quarter fiscal 2004 revenues totaled $63,949,000, a 22% increase when compared to revenues of $52,404,000 in the fourth quarter of fiscal 2003. For the fourth quarter of fiscal 2004, Hologic reported net income of $5,210,000, or $0.24 per diluted share, compared with net income of $2,599,000, or $0.13 per diluted share, in the fourth quarter of fiscal 2003. The improvement in earnings primarily reflects the increase in revenues, led by the continued shift in product sales to the higher margin digital mammography systems (Selenia).

For the year ended September 25, 2004, revenues totaled $228,705,000, compared to revenues of $204,035,000 for the year ended September 27, 2003. For the year ended September 25, 2004, Hologic reported net income of $12,164,000, or $0.57 per diluted share, compared with net income of $2,882,000 or $0.14 per diluted share, for fiscal 2003.

During the fourth quarter, Hologic installed and recognized as revenue, 44 Selenia full field digital mammography systems. At September 25, 2004, the Company's backlog for orders of Selenia was 88 systems and total backlog for all products was $61 million.

"We ended our fiscal year on a very strong note with excellent fourth quarter gains in revenue and profit," said Jack Cumming, Chairman and CEO. "Demand for our Selenia full field mammography system increased in the fourth quarter compared with the first three quarters of the fiscal year, validating our business strategy and providing momentum for fiscal year 2005. We are moving ahead with optimism and believe we are well positioned for the future as we focus on serving the needs of our customers and enhancing shareholder value. We plan to continue to concentrate on our fundamental growth initiatives, including the introduction of innovative technologies that we believe will drive our business and benefit women's healthcare issues."

Beginning in the first quarter of fiscal 2004, the Company changed its segment reporting to reflect four market segments: Mammography; Osteoporosis Assessment; Digital Detectors; and All Other. The All Other segment includes the Company's mini C-arm, conventional general radiography service and digital general radiography systems businesses. Prior period segment information has been restated to reflect this change in the Company's segment reporting.

  Fourth quarter financial overview by segment:
  * Mammography revenues increased 45% to $33,620,000 for the fourth quarter
    of fiscal 2004 from $23,119,000 for the same period in fiscal 2003.
    This increase was primarily due to continued increasing sales of Selenia
    in both the domestic and international markets.  Operating income for
    this business segment in the fourth quarter of fiscal 2004 increased to
    $4,168,000 compared to operating income of $2,460,000 in the fourth
    quarter of fiscal 2003.  This increase in operating income in the
    current quarter was primarily due to the increase in revenues and the
    higher gross margins on the shift in product sales to Selenia.
  * Osteoporosis assessment revenues were $17,763,000 for the fourth quarter
    of fiscal 2004, compared to $18,219,000 for the same period in fiscal
    2003.  This decrease was primarily due to a reduction in service
    revenue.  Operating income for this business segment in the fourth
    quarter of fiscal 2004 decreased to $2,063,000 from $2,883,000 in the
    fourth quarter of fiscal 2003.  The decrease in operating income in the
    current quarter was primarily due to a shift to lower priced systems
    sold into the United States primary care and international markets,
    reduced service revenue and higher service costs which were offset in
    part by lower selling, general and administrative expenses.
  * Digital detector revenues increased 138% to $5,663,000 for the fourth
    quarter of fiscal 2004 from $2,377,000 for the same period in fiscal
    2003.  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 fourth
    quarter of fiscal 2004 decreased to $867,000 from $916,000 in the fourth
    quarter of fiscal 2003.  The decrease in operating loss in the current
    quarter was primarily due to the increased revenues, that were partially
    offset by lower selling prices and an increase in research and
    development expenses.
  * All other revenues decreased 20% to $6,903,000 for the fourth quarter of
    fiscal 2004 from $8,689,00 for the same period in fiscal 2003.  The
    decrease in revenues was primarily due to the shipment of fewer digital
    general radiography tables as this business is currently being phased
    out.  Operating loss for this business segment in the fourth quarter of
    fiscal 2004 decreased to $111,000 from a loss of $1,718,000 in the
    fourth quarter of fiscal 2003.  This decrease in operating loss 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 fourth quarter and fiscal 2004 operating results. Interested participants may listen to the call by dialing 800-310-6649 or 719- 457-2693 for international callers and referencing code 378629 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 November 12, 2004 at 888-203-1112 or 719-457-0820 for international callers, access code 378629. 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

                                                September 25,  September 27,
                                                     2004           2003

  CURRENT ASSETS:
   Cash and cash equivalents                       $68,335        $45,177
   Accounts receivable, net                         48,409         43,831
   Inventories                                      40,174         43,426
   Prepaid expenses and other current assets         9,135          9,554
    Total current assets                           166,053        141,988

  Property and equipment, net                       32,877         32,106
  Intangible assets, net                             6,251          8,040
  Goodwill, net                                      6,285          5,810
  Other assets, net                                    285            659

                                                  $211,751       $188,603


                   LIABILITIES AND STOCKHOLDERS' EQUITY

                                                September 25,  September 27,
                                                      2004           2003
  CURRENT LIABILITIES:
   Current portion of note payable                    $475           $480
   Accounts payable                                 10,546         10,819
   Accrued expenses                                 20,970         17,387
   Deferred revenue                                 13,013          9,440
    Total current liabilities                       45,004         38,126

   Notes payable, net of current portion               472          1,550

   STOCKHOLDERS' EQUITY:
    Common stock, $.01 par value-
     Authorized - 30,000 shares
     Issued - 20,585 and 19,966
     shares, respectively                              206            200
    Capital in excess of par value                 149,452        144,455
    Retained earnings                               18,196          6,032
    Cumulative translation adjustment               (1,115)        (1,296)
    Treasury stock, 45 shares at cost                 (464)          (464)
     Total stockholders' equity                    166,275        148,927
                                                  $211,751       $188,603


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

                         Three Months Ended         Twelve Months Ended
                     September 25, September 27, September 25, September 27,
                           2004         2003        2004         2003


  REVENUES               $63,949      $52,404     $228,705     $204,035

  COSTS AND EXPENSES:
   Cost of revenues       40,780       33,411      143,336      130,455
   Research and
    development            4,362        4,363       16,659       18,381
   Selling and marketing   7,325        6,594       31,761       29,978
   General and
    administrative         6,229        5,327       23,622       22,196
   Acquisition costs           -            -          741            -
                          58,696       49,695      216,119      201,010

    Income from
     operations            5,253        2,709       12,586        3,025

  Interest income            191          128          540          685

  Interest expense/other
   income (expense)          212         (169)        (199)        (445)

   Income before provision
    for income taxes and
    cumulative effect of
    accounting change      5,656        2,668       12,927        3,265

  Provision for
   Income Taxes              446           69          763          176

   Income before
    cumulative effect
    of accounting change   5,210        2,599       12,164        3,089
   Cumulative effect of
    accounting change          -            -            -         (207)
   Net income             $5,210       $2,599      $12,164       $2,882


  Basic income per common
   and common
   equivalent share:
   Income before
    cumulative effect
    of accounting change   $0.25       $ 0.13       $ 0.60        $0.16
   Cumulative effect
    of accounting change       -            -            -        (0.01)
   Net income              $0.25       $ 0.13       $ 0.60        $0.15

  Diluted income per
   common and common
   equivalent share:
   Income before
    cumulative effect
    of accounting change   $0.24       $ 0.13       $ 0.57        $0.15
   Cumulative effect
    of accounting change       -            -            -        (0.01)
   Net income              $0.24       $ 0.13       $ 0.57        $0.14

  Weighted Average
   Number of Common
   Shares Outstanding:
   Basic                  20,482       19,805       20,258       19,629
   Diluted                21,525       20,776       21,296       20,130

  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/