Hologic, Inc. (NASDAQ: HOLX) today announced its results for the third quarter ended July 1, 2000, reporting a net loss of $2,643,000, or $.17 per diluted share, compared with a net loss of $1,533,000, or $.11 per diluted share, for the quarter ended June 26, 1999. Third quarter fiscal 2000 revenues totaled $22,083,000 compared to revenues of $20,008,000 for the corresponding three months in fiscal 1999. Product revenues increased $1 million in the third quarter of fiscal 2000 when compared to the immediately preceding second quarter due primarily to an increase in sales of the company's bone densitometry and mini C-arm systems. The Company's losses were attributable to its continuing investment in developing and commercializing its Direct Radiography digital products.
For the nine months ended July 1, 2000, Hologic recognized a net loss of $7,697,000 or $.50 per diluted share, compared with a net loss of $584,000, or $.04 per diluted share, for the comparable nine month period in fiscal 1999. Revenues totaled $66,629,000 for the nine months ended July 1, 2000, a slight increase when compared to revenues of $64,001,000 in the nine months ended June 26, 1999.
Revenues from the Company's Direct Radiography subsidiary (acquired in the third quarter of fiscal 1999) increased to $1,465,000 in the current quarter. The Company estimates that in the current third quarter it had net losses of approximately $3,300,000 or $.22 per diluted share, associated with this subsidiary. Absent these losses, Hologic would have reported net income of $656,000, or $.05 per diluted share on revenues of $20,600,000 in the third quarter of 2000.
S. David Ellenbogen, Hologic's Chairman and CEO stated, "We are quite pleased with the strong market reception we have received for our new Delphi bone densitometer and for our RADEX direct-to-digital general radiography system. Delphi is quickly becoming our most popular bone densitometer and is driving a new standard of care in densitometry today. Our strategy of providing an integrated assessment of the two strongest risk factors for osteoporotic fractures (existing vertebral fractures and low bone density) was strongly endorsed by both the pharmaceutical and medical communities at the World Congress on Osteoporosis held recently in Chicago. We also completed the installations of our first two RADEX systems during the quarter and shipped our first EPEX system the last week of July. We are enthused by the early customer feedback, especially regarding the exceptional image quality. The RADEX and EPEX systems remain the only direct-to-digital general radiography systems commercially available today. We believe we are looking at a potential market of $1 billion for digital X-ray equipment within the next few years."
At the end of June, Hologic's sales backlog had increased to a record high of over $17,000,000 driven by the demand for our new direct-to-digital radiographic products. The backlog for Hologic's bone densitometers also increased due to the growing interest in the new Delphi system. The new direct-to-digital radiographic products currently account for approximately one-half of backlog.
Hologic, Inc. develops, manufactures and markets proprietary x-ray and ultrasound systems. With more than 9,000 installations worldwide, the Company's QDR and ultrasound bone densitometers are used for the assessment of bone density and vertebral status to assist in the diagnosis and monitoring of metabolic bone diseases such as osteoporosis. FluoroScan Imaging Systems, Inc., a wholly owned subsidiary, manufactures and distributes state-of-the- art, low intensity, real time X-ray imaging devices which provide high resolution images at radiation levels and at a cost well below those of conventional X-ray and fluoroscopic equipment. Direct Radiography Corp., a wholly owned subsidiary, manufactures a state-of-the-art proprietary flat panel technology, DirectRay, which can produce high quality digital radiographic images in seconds, thereby bypassing the need for X-ray film or chemicals.
DirectRay®, Direct Radiography®, Delphi™, EPEX™ and RADEX™, are trademarks of Hologic, Inc. or Hologic subsidiaries in the United States and other countries.
This News Release contains forward-looking information that involves risks and uncertainties, including statements about the Company's plans, objectives, expectations and intentions. Such statements include, without limitation, statements regarding the Company's expectations regarding its recently introduced Delphi, EPEX and RADEX systems. There can be no assurance that actual results will not be materially different than those anticipated in these forward-looking statements. Factors that could cause actual results to materially differ from those anticipated in these forward-looking statements include known and unknown risks, including, without limitation, the Company's ability to integrate the operations of Direct Radiography Corp. successfully; the unproven nature of the markets for digital X-ray products; the Company's ability to predict accurately the demand for its products in these emerging markets and to develop strategies to address these markets successfully; uncertainties inherent in the development of new products and the enhancement of existing products, including technical and regulatory risks and delays; the Company's reliance on one or only a limited number of suppliers for some key components or subassemblies of its Direct Radiography products; the Company's dependence on third party distributors to commercialize its Direct Radiography products; risks related to the discontinuance of placements of new bone densitometers under the Company's strategic alliance program, and Hologic's remarketing obligations and associated litigation under that program; technical innovations that could render products marketed or under development by Hologic obsolete; competition; reimbursement policies for bone density testing and vertebral fracture assessment; and regulatory approval and market acceptance of drug therapies for osteoporosis. Other factors that could adversely affect the Company's business and prospects are described in the Company's reports and registration statements filed with the Securities and Exchange Commission. The Company 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 July 1, September 25, 2000 1999 CURRENT ASSETS: Cash and cash equivalents $34,098 $36,508 Short-term investments 15,033 26,170 Accounts receivable, less reserves of $4,015 and $3,480, respectively 26,240 28,056 Inventories 21,733 17,596 Prepaid expenses and other current assets 2,814 6,841 Total current assets 99,918 115,171 PROPERTY AND EQUIPMENT, at cost: Equipment 17,188 15,981 Furniture and fixtures 3,789 3,224 Land 10,002 10,002 Buildings and improvements 30,848 28,812 Leasehold improvements 512 605 62,339 58,624 Less- Accumulated depreciation and amortization 10,480 8,154 51,859 50,470 Other assets, net 18,829 10,129 $170,606 $175,770 LIABILITIES AND STOCKHOLDERS' EQUITY July 1, September 25, 2000 1999 CURRENT LIABILITIES: Line of credit $411 $1,103 Accounts payable 6,842 6,063 Accrued expenses 9,970 10,103 Deferred revenue 10,767 8,079 Total current liabilities 27,990 25,348 STOCKHOLDERS' EQUITY: Common stock, $.01 par value- Authorized - 30,000 shares Issued - 15,372 and 15,303 shares, respectively 154 153 Capital in excess of par value 109,985 109,624 Retained earnings 34,744 42,440 Cumulative translation adjustment (1,803) (1,331) Treasury stock, at cost, 45 shares (464) (464) Total stockholders' equity 142,616 150,422 $170,606 $175,770 HOLOGIC, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) Three Months Ended Nine Months Ended July 1, June 26, July 1, June 26, 2000 1999 2000 1999 REVENUES: Product sales $21,923 $19,303 $63,903 $62,014 Other revenues 160 705 2,726 1,987 22,083 20,008 66,629 64,001 COSTS AND EXPENSES: Cost of product sales 13,975 12,093 40,531 36,416 Research and development 3,872 3,215 12,626 8,316 Selling and marketing 6,098 4,816 17,232 14,786 General and administrative 3,161 2,953 10,922 8,000 27,106 23,077 81,311 67,518 Loss from operations (5,023) (3,069) (14,682) (3,517) Interest income 888 848 2,767 3,249 Other expense (8) (167) (82) (651) Loss before benefit for income taxes (4,143) (2,388) (11,997) (919) BENEFIT FOR INCOME TAXES (1,500) (855) (4,300) (335) Net loss $(2,643) $(1,533) $(7,697) $( 584) NET LOSS PER COMMON AND COMMON EQUIVALENT SHARE: Basic earnings per share $(.17) $(.11) $(.50) $(.04) Diluted earnings per share $(.17) $(.11) $(.50) $(.04) WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 15,327 13,841 15,302 13,515 WEIGHTED AVERAGE NUMBER OF COMMON AND DILUTIVE POTENTIAL COMMON SHARES OUTSTANDING 15,327 13,841 15,302 13,515
SOURCE: Hologic, Inc.
Contact: Glenn Muir, Vice President, Finance of Hologic, Inc.,