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

BEDFORD, Mass., Aug. 3, 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 ended June 26, 2004.

Third quarter fiscal 2004 revenues totaled $59,225,000, a 13% increase when compared to revenues of $52,332,000 in the third quarter of fiscal 2003. For the third quarter of fiscal 2004, Hologic reported net income of $3,325,000, or $0.15 per diluted share, compared with net income of $1,019,000 or $0.05 per diluted share, in the third quarter of fiscal 2003. The improvement in earnings reflects the increase in revenues, led by the continued shift in product sales to the higher margin digital mammography systems (Selenia). Included in the results was $741,000 the Company incurred in due diligence and related expenses in connection with the analysis and negotiation of a potential acquisition. At quarter-end, the Company had decided not to pursue this potential acquisition further and accordingly expensed all acquisition related costs.

For the nine months ended June 26, 2004, revenues totaled $164,756,000 compared to revenues of $151,631,000 in the nine months ended June 28, 2003. For the nine months ended June 26, 2004, Hologic recognized net income of $6,954,000, or $0.33 per diluted share, compared with net income of $282,000, or $0.01 per diluted share, for the comparable nine-month period in fiscal 2003.

During the third quarter, Hologic installed and recognized as revenue, 37 Selenia full field digital mammography systems. At June 26, 2004, the Company's backlog for orders of Selenia was 80 systems and total backlog for all products was over $58 million.

"This is the third consecutive quarter we have boosted earnings and revenue. Our ability to grow both the top and bottom line demonstrates the value we provide our customers" said, Jack W. Cumming, Chairman and CEO. "Quarter-over-quarter we continue to increase traction in our breast imaging product segment and are buoyed by the prospects for future sales growth. We anticipate the quality of our customer base, coupled with our revenue streams and operational efficiencies will continue to yield positive operating results for the balance of the fiscal year. For the future, we expect to leverage our technological advantages, expand our product offerings and increase our market penetration, to further enhance our competitive position."

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.

  Third quarter financial overview by segment:
  * Mammography revenues increased 41% to $30,611,000 for the third quarter
    of fiscal 2004 from $21,752,000 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 third quarter of fiscal 2004
    increased to $3,001,000 compared to operating income of $1,239,000 in
    the third 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 profits on the shift in product sales to Selenia.
  * Osteoporosis assessment revenues were $17,614,000 for the third quarter
    of fiscal 2004, compared to $17,754,000 for the same period in fiscal
    2003.  Operating income for this business segment in the third quarter
    of fiscal 2004 decreased to $1,961,000 from $2,572,000 in the third
    quarter of fiscal 2003.   The decrease in operating income in the
    current quarter was primarily due to lower gross profits from a shift
    to lower priced systems sold into the United Sates primary care and
    international markets, slightly reduced service revenue and slightly
    higher service costs.
  * Digital detector revenues increased 112% to $4,683,000 for the third
    quarter of fiscal 2004 from $2,207,000 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 third
    quarter of fiscal 2004 decreased to $1,073,000 from $1,589,000 in the
    third quarter of fiscal 2003.  The decrease in operating loss in the
    current quarter was primarily due to the increased revenues and
    improved gross margins from the higher volume.
  * All other revenues decreased 41% to $6,317,000 for the third quarter of
    fiscal 2004 from $10,619,000 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 third quarter of
    fiscal 2004 decreased to $462,000 from a loss of $1,188,000 in the
    third 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 third quarter fiscal 2004 operating results. Interested participants may listen to the call by dialing 800-210-9006 or 719-457-2621 for international callers and referencing code 512647 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 August 6, 2004 at 888-203-1112 or 719-457-0820 for international callers, access code 512647. 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; the Company's expected positive operating results for the balance of the fiscal year; the Company's future expectations regarding its technological advantages, product offerings, market penetration 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.

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



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

                                  ASSETS

                                                   June 26,    September 27,
                                                     2004           2003
  CURRENT ASSETS:
   Cash and cash equivalents                       $56,944        $45,177
   Accounts receivable, less reserves of
    $2,867 and $3,477, respectively                 47,759         43,831
   Inventories                                      42,956         43,426
   Prepaid expenses and other current assets         9,673          9,554
     Total current assets                          157,332        141,988

  Property and equipment, net                       32,156         32,106
  Intangible assets, net                             6,693          8,040
  Goodwill, net                                      6,285          5,810
  Other assets, net                                    414            659

                                                  $202,880       $188,603


                   LIABILITIES AND STOCKHOLDERS' EQUITY

                                                   June 26,    September 27,
                                                     2004           2003
  CURRENT LIABILITIES:
   Current portion of note payable                    $943           $480
   Accounts payable                                 10,891         10,819
   Accrued expenses                                 18,095         17,387
   Deferred revenue                                 12,360          9,440
     Total current liabilities                      42,289         38,126

  Notes payable, net of current portion                590          1,550

  STOCKHOLDERS' EQUITY:
   Common stock, $.01 par value-
    Authorized - 30,000 shares
     Issued - 20,471 and 19,966 shares,
      respectively                                     205            200
   Capital in excess of par value                  148,429        144,455
   Retained earnings                                12,986          6,032
   Cumulative translation adjustment               (1,155)        (1,296)
   Treasury stock, 45 shares at cost                 (464)          (464)
     Total stockholders' equity                    160,001        148,927

                                                  $202,880       $188,603



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

                           Three Months Ended          Nine Months Ended
                         June 26,      June 28,     June 26,     June 28,
                           2004          2003         2004         2003

  REVENUES               $59,225      $52,332     $164,756     $151,631

  COSTS AND EXPENSES:
   Cost of revenues       37,039       33,852      102,556       97,044
   Research and
    development            4,143        4,366       12,296       14,018
   Selling and marketing   7,554        7,561       24,435       23,384
   General and
    administrative         6,321        5,519       17,394       16,870
   Acquisition costs         741            -          741            -
                          55,798       51,298      157,422      151,316

    Income from operations 3,427        1,034        7,334          315

  Interest income            125          137          349          556

  Interest/other expense    (54)        (100)        (412)        (276)

    Income before provision
     for income taxes and
      cumulative effect of
       accounting change   3,498        1,071        7,271          595

  Provision for Income Taxes 173           52          317          106

    Income before cumulative
     effect of accounting
      change               3,325        1,019        6,954          489
    Cumulative effect
     of accounting change      -            -            -        (207)
    Net income            $3,325       $1,019       $6,954         $282

  Basic income per common and common equivalent share:
    Income before cumulative
     effect of accounting
      change                $.16         $.05         $.34         $.02
    Cumulative effect
     of accounting change      -            -            -        (.01)
    Net income              $.16         $.05         $.34         $.01

  Diluted income per common and common equivalent share:
    Income before cumulative
     effect of accounting
      change                $.15         $.05         $.33         $.02
    Cumulative effect
     of accounting change      -            -            -        (.01)
    Net income              $.15         $.05         $.33         $.01

  Weighted Average Number of Common Shares Outstanding:
    Basic                 20,359       19,656       20,183       19,571
    Diluted               21,471       20,236       21,220       19,915

  Note:  During the fourth quarter of fiscal 2003, the Company adopted EITF
  00-21:  Revenue Arrangements with Multiple Deliverables, as a cumulative
  effect adjustment for a change in accounting principle.  All installation
  and training activities have been classified as service and other revenue
  and the fair value of these undelivered items at the end of any period
  are deferred.  All 2003 information presented has been reclassified to
  conform with the current-period presentation.

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/