Hologic fiscal 1Q earnings down 32 pct on charges

posted: 8 DAYS 14 HOURS AGO

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BEDFORD, Mass. -Hologic Inc., which makes mammogram systems and other women's health diagnostic tools, said Monday its fiscal first-quarter profit fell 32 percent, hurt by charges and continued capital spending restraint by hospitals.

But the company said it is seeing early signs of stabilization in the mammogram equipment market. Shares jumped more than 3 percent in after-hours trading on the results and outlook.

Hologic said earnings for the three months ended Dec. 26 dropped to $26.1 million, or 10 cents per share, from $38.2 million, or 15 cents per share, in the same period last year. Excluding one-time charges, however, the company said it would have earned 29 cents per share.

Revenue slipped 4 percent to $412.4 million from $429.2 million in the year-ago quarter.

Hologic said sales of its Selenia mammography line declined as hospitals remained cautious on equipment spending, and sales of its skeletal health product line also fell. Those drops were partially offset by increased revenue from servicing its installed mammogram systems and stronger sales of testing and gynecological surgery products.

The results topped expectations of analysts surveyed by Thomson Reuters, who had expected profit of 26 cents per share on revenue of $403.7 million.

"Our first-quarter order rate for digital mammography signaled early signs of stabilization," said President and CEO Rob Cascella. "I believe uncertainty still exists in the capital equipment market, but I am encouraged by both domestic and international order activity."

For the fiscal second quarter, Hologic said it expects to earn an adjusted 29 cents per share on $410 million to $415 million in revenue. Wall Street is looking for net income of 29 cents per share on $406.2 million in revenue, on average.

Hologic shares closed up 18 cents at $15.25, and rose 48 cents to $15.74 in aftermarket trading.

2010-02-01 16:43:29