Hologic, Inc. (NASDAQ: HOLX), a leading provider of specialized imaging equipment, today announced it has executed an agreement for a working capital line of credit with Foothill Capital Corporation, a wholly owned subsidiary of Wells Fargo & Company (NYSE: WFC). The line of credit, totaling $25 million, will be drawn upon to fund certain of Hologic's research and development projects, particularly relating to the Company's direct-to-digital technology, and other general corporate purposes.
Commenting on the additional capital, Hologic's Chief Financial Officer, Glenn P. Muir, stated, "Since 1999, Hologic has invested significant capital for the development of direct-to-digital imaging systems incorporating our patented DirectRay® technology, the most recent being the ongoing development of a digital mammography system. The additional funds from the working capital line will be instrumental in our ability to bring these projects/systems to market. The opportunities in the emerging digital market are significant. Our goal is to apply our unique digital technology to obtain a leadership position in this dynamic field. According to a recent Frost & Sullivan report, the x-ray mammography market is expected to double to $567.2 million by 2007, driven by the emergence of full-field digital mammography."
Hologic, Inc. is dedicated to developing and delivering proprietary X-ray and ultrasound systems that incorporate direct-to-digital radiographic imaging technology for both women's health and general radiographic applications. Hologic's business divisions include: the Hologic Radiographic Systems division encompassing general and digital radiography systems; Direct Radiography Corp., a wholly owned subsidiary and manufacturer of state-of-the-art proprietary flat panel technology called DirectRay®; the Hologic Bone Densitometry division; the LORAD division, specializing in state-of-the-art breast imaging and minimally invasive breast biopsy systems; and Fluoroscan Imaging, a wholly owned subsidiary, manufacturing and marketing state-of-the-art, low intensity, real time X-ray imaging devices.
For more information on Hologic, please visit the Company's website at http://www.hologic.com/.
Foothill Capital Corporation is a leading provider of asset-based financing to middle market companies throughout North America. In addition, Foothill Capital has successfully completed financings for many innovative, "non-traditional," secured lending transactions. Foothill Capital is a subsidiary of Wells Fargo & Company, a $290 billion diversified financial services company providing banking, insurance, investments, mortgage and consumer finance through more than 5,400 stores, the Internet (wellsfargo.com) and other distribution channels across North America and elsewhere internationally. For more information, visit Foothill Capital on the Internet at http://www.foothillcapital.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 anticipated benefit of having the working capital line of credit, and Mr. Muir's statements concerning the Company's use of this capital to bring its digital imaging products to market. These forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could cause actual results to materially differ include, without limitation, Hologic's continuing losses and ability to raise funds in addition to the line of credit to fund those losses as well as other working capital requirements; the early stage of market development for digital X-ray products, Hologic's ability to predict accurately the demand for its products and to develop strategies to address its markets successfully; uncertainties inherent in the development of new products and the enhancement of existing products, including technical and regulatory risks, cost overruns and delays; risks relating to the Company's reliance on a single source of supply for some key components of its products; risks related to ongoing litigation; technical innovations that could render products marketed or under development by Hologic obsolete; competition; reimbursement policies for the use of Hologic's products; market acceptance of drug therapies for osteoporosis. Other factors that could adversely affect Hologic's business and prospects are described in Hologic'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.
MAKE YOUR OPINION COUNT - Click Here
SOURCE: Hologic, Inc.
Contact: Glenn P. Muir, Executive Vice President & CFO, or Marianne E. Ritchie, Manager, Investor Relations, of Hologic, Inc., +1-781-999-7300
Web site: http://www.hologic.com/