News


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

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
Hologic, Inc.

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