News


Hologic Announces Third Quarter Fiscal 2000 Operating Results
Hologic continues investment in new digital-to-direct X ray products; First RADEX installed - Backlog at record high
PRNewswire
BEDFORD, Mass.

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.,
781-999-7300

Website: http://www.hologic.com/