Hologic, Inc. (HOLX), a diversified medical technologies company serving the healthcare needs of women, recently reported its second quarter financials, which included revenues of $431 million and an estimated $189.2 million from a new product line acquired through a merger with Cytyc Corporation in October 2007. The results were a 138 percent increase from the second quarter in 2007, which reported $181.1 million in revenue.
Net income also increased from $21.6 million in 2007 to $56.0 million in 2008, which equates to $0.20 per diluted share in 2007 to $0.22 per diluted share in 2008. Charges related to the merger with Cytyc of $25.1 million for the amortization of intangibles and $0.8 million for the write-up of acquired inventory to fair market value were included in the calculations of the second quarter net income.
Analysts had estimated second quarter earnings of $0.28 on about $417 million revenue. Due to the 21 percent miss on earnings, Hologic stock decreased by 18.6 percent to $23.75 per share. Although the company did not make expectations, a number of analysts posted positive updates.
“This quarter marks our first full quarter since we completed our acquisition of Cytyc. We are pleased with our results and proud of our accomplishments to date — most notably, the alignment of our sales resources and our expanded product offerings,” stated Jack Cumming, CEO of Hologic. “We are beginning to see the sales synergies we had hoped for, especially in our Breast Health segment as the combined sales force has opened up a channel of opportunity for our interventional breast solutions business. Fiscal 2008 continues to look bright as we remain committed to our financial targets.”
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