BEDFORD, Mass., Jul. 27, 2005 /PRNewswire-FirstCall/ -- Hologic, Inc. (NASDAQ: HOLX), a leading provider of state-of-the-art diagnostic and digital imaging systems directed towards women's health, today announced its results for the quarter and nine months ended June 25, 2005.
Highlights of the quarter include: -- Record revenues of $74 million. -- Record earnings of $8.2 million. -- Record backlog of $93 million. -- Record 64 Selenia full field digital mammography systems recognized as revenue.
Third quarter fiscal 2005 revenues totaled $74,053,000, a 25% increase when compared to revenues of $59,225,000 in the third quarter of fiscal 2004. For the third quarter of fiscal 2005, Hologic reported net income of $8,158,000, or $0.36 per diluted share, compared with net income of $3,325,000, or $0.15 per diluted share, in the third quarter of fiscal 2004. The improvement in quarterly earnings primarily reflects the increase in revenues in the mammography segment as product sales of Selenia digital mammography systems, MultiCare breast biopsy tables and analog mammography systems all increased in the current quarter as compared to the third quarter of fiscal 2004.
In the current quarter, Hologic's effective tax rate increased to 20% of pre-tax earnings. This rate is higher than the 15% effective tax rate for the first six months of fiscal 2005 and is higher than previously expected due to the Company's continuing improved performance and resulting increase in the Company's earnings expectations for the current fiscal year. The Company's current effective tax rate for the full 2005 fiscal year is approximately 17%.
For the nine months ended June 25, 2005, revenues increased 27%, to $209,466,000 compared to revenues of $164,756,000 in the nine months ended June 26, 2004. For the nine months ended June 25, 2005, Hologic recognized net income of $18,780,000, or $0.84 per diluted share, compared with net income of $6,954,000, or $0.33 per diluted share, for the comparable nine-month period in fiscal 2004.
During the third quarter of fiscal 2005, Hologic recognized as revenue 64 Selenia full-field digital mammography systems. At June 25, 2005, the Company's backlog for orders of Selenia was 155 systems and total backlog for all products increased to over $93 million, the highest quarterly backlog in the Company's history and a 9% increase over the backlog at March 26, 2005.
"During the quarter we recorded our sixth consecutive quarter of revenue growth demonstrating continued execution," said Jack W. Cumming, Chairman and Chief Executive Officer. "Once again, our sales growth this quarter was highlighted by the continued strong demand for Selenia, our full field digital mammography system. We believe we are continuing to gain market share in the industries we serve primarily due to our technology leadership. This growth is a testament to the strength of our products and our sales execution and we believe additional opportunities exist as our brand awareness grows. We are looking forward to continued success in the final quarter of this fiscal year and into next year."
Third quarter financial overview by segment: -- Mammography revenues increased 38% to $42,347,000 for the third quarter of fiscal 2005 from $30,611,000 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 the MultiCare breast biopsy tables and analog mammography systems. Operating income for this business segment in the third quarter of fiscal 2005 increased to $6,395,000 compared to operating income of $3,001,000 in the third 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 9% to $19,183,000 for the third quarter of fiscal 2005 from $17,614,000 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 third quarter of fiscal 2005 increased to $3,116,000 compared to operating income of $1,961,000 in the third quarter of fiscal 2004. This increase in operating income in the current quarter was primarily due to the increase in revenues. -- Digital detector revenues increased 43% to $6,699,000 for the third quarter of fiscal 2005 from $4,683,000 for the same period in fiscal 2004. This increase was primarily due to a significant increase in the number of mammography digital detectors sold. Operating loss for this business segment in the third quarter of fiscal 2005 increased to $1,357,000 from $1,073,000 in the third quarter of fiscal 2004. This increase in operating loss in the current quarter was primarily due to the increase in research and development and general and administrative expenses, which were only partially offset from the increased margin from the higher sales volume. -- All other revenues which includes the Company's mini C-arm, conventional general radiography service and digital general radiography systems businesses decreased 8% to $5,824,000 for the third quarter of fiscal 2005 from $6,317,000 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, which was partially offset by an increase in sales of mini C-arm systems. Operating income for this business segment in the third quarter of fiscal 2005 increased to $1,297,000 from a loss of $462,000 in the third quarter of fiscal 2004. This increase in operating income in the current quarter was primarily due to the increased margin from the higher mini C-arm sales volume, improved margin on higher service volume for digital radiography systems and the elimination of unprofitable digital general radiography sales.
Hologic's management will host a conference call today at 10:00 a.m. (Eastern) to discuss third quarter fiscal 2005 operating results. Interested participants may listen to the call by dialing 800-946-0783 or 719-457-2658 for international callers and referencing code 8944515 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 July 29, 2005 at 888-203-1112 or 719-457-0820 for international callers, access code 8944515. 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 core business units are focused on osteoporosis assessment, mammography and breast biopsy, direct-to- digital X-ray for general radiography applications and mini C-arm imaging for orthopedic applications. For more information, please visit 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 increased earnings expectations for the current fiscal year, the expected effective tax rate for the current fiscal year, the Company's anticipated continued success in the final quarter of this fiscal year and into next year, 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 June 25, September 25, 2005 2004 CURRENT ASSETS: Cash and cash equivalents $102,247 $68,335 Accounts receivable, net 54,044 48,409 Inventories 41,684 40,174 Prepaid expenses and other current assets 8,924 9,135 Total current assets 206,899 166,053 Property and equipment, net 33,934 32,877 Intangible assets, net 5,428 6,251 Goodwill 6,285 6,285 Other assets, net 6,659 285 $259,205 $211,751 LIABILITIES AND STOCKHOLDERS' EQUITY June 25, September 25, 2005 2004 CURRENT LIABILITIES: Current portion of note payable $472 $475 Accounts payable 15,742 10,546 Accrued expenses 27,237 20,970 Deferred revenue 17,194 13,013 Total current liabilities 60,645 45,004 Notes payable, net of current portion 118 472 STOCKHOLDERS' EQUITY: Common stock, $.01 par value- Authorized - 30,000 shares Issued -22,010 and 20,585 shares, respectively 220 206 Capital in excess of par value 162,941 149,452 Retained earnings 36,976 18,196 Cumulative translation adjustment (1,231) (1,115) Treasury stock, 45 shares at cost (464) (464) Total stockholders' equity 198,442 166,275 $259,205 $211,751 HOLOGIC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) Three Months Ended Nine Months Ended June 25, June 26, June 25, June 26, 2005 2004 2005 2004 REVENUES $74,053 $59,225 $209,466 $164,756 COSTS AND EXPENSES: Cost of revenues 43,963 37,039 128,395 102,556 Research and development 5,100 4,143 14,292 12,296 Selling and marketing 8,748 7,554 25,294 24,435 General and administrative 6,791 7,062 20,263 18,135 64,602 55,798 188,244 157,422 Income from operations 9,451 3,427 21,222 7,334 Interest income 640 125 1,362 349 Interest expense/other income (expense) 67 (54) (4) (412) Income before provision for income taxes 10,158 3,498 22,580 7,271 Provision for income taxes 2,000 173 3,800 317 Net income $8,158 $3,325 $18,780 $6,954 Net income per common and common equivalent share: Basic $0.37 $0.16 $0.89 $0.34 Diluted $0.36 $0.15 $0.84 $0.33 Weighted average number of common shares outstanding: Basic 21,839 20,359 21,205 20,183 Diluted 22,888 21,471 22,363 21,220 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
Web site: http://www.hologic.com/