If anyone is still around, quarterly earnings release follows:
<<<Hologic, Inc. Announces Record Revenues in the Third Quarter of Fiscal 1998
Thursday, July 30, 1998 07:45 AM
WALTHAM, Mass., July 30 /PRNewswire/ -- Hologic, Inc. (Nasdaq: HOLX) today announced its results for the third quarter ended June 27, 1998, reporting net income of $4,289,430, or $.31 per diluted share, compared with net income of $4,746,303, or $.35 per diluted share, for the quarter ended June 28, 1997. Fiscal 1998 third quarter revenues totaled $34,425,830 compared to revenues of $26,947,937 for the corresponding three months in fiscal 1997.
For the nine months ended June 27, 1998, Hologic recognized net income of $9,072,758, or $.66 per diluted share, compared to net income of $13,805,498, or $1.01 per diluted share, for the same nine
month period in fiscal 1997. Revenues increased to $90,743,711 for the nine months ended June 27, 1998 when compared to total revenues of $82,057,568 in the nine months ended June 28, 1997.
"We continue to see strength in the primary care market in the United States which led to the record number of DXA systems shipped in the current quarter," said S. David Ellenbogen, Hologic's Chairman and CEO. "The primary care market is continuing to embrace bone density testing in response to the growing awareness of osteoporosis and the steps of prevention that are available."
During the third quarter, sales of the Sahara(R) Clinical Bone onometer more than doubled to approximately $3 million from the immediately preceding quarter. Sahara is a portable, low-cost, ultrasound system that provides physicians with an easy and economical way to assess a patient's bone status based on an ultrasound measurement of the heel. Sahara is unique from other competitive devices as it is a completely dry ultrasound system that does not require water as a coupling medium. This system is targeted at primary care and Ob/Gyn physicians and is marketed through PSS/Physician Sales and Service. PSS is the largest distributor of medical supplies, equipment and pharmaceuticals to office-based physicians in the United States.
In June, the Health Care Finance Administration ("HCFA") established an interim billing code specifically for ultrasound bone mineral density studies. The new code became effective July 1, 1998, and provides for a national average payment of $40 which will vary depending on the geographic location of the provider. The reimbursement protocol published in the Federal Register allows reimbursement for an initial ultrasound peripheral scan followed by a baseline DXA exam, plus follow-on DXA or other exams every two years, or more frequently, based upon medical necessity. Steve L. Nakashige, Hologic's President and COO commented, "The recent establishment of
Medicare reimbursement for ultrasound bone density examinations and the start of PSS's marketing efforts are beginning to drive Sahara sales in the important primary care market. We remain optimistic that Sahara will become the product of choice for office-based physicians due to its ease of use, dry operation ultrasound technology and heel measurement site."
Earlier this month the Milk Mustache Mobile 100-City Better Bones Tour began with an unveiling of the star-studded trucks by Secretary of Health and Human Services Donna E. Shalala. Hologic, has partnered with the National Dairy Council, the Milk Mustache Campaign and the National Osteoporosis Foundation to educate Americans about the importance of drinking milk to prevent osteoporosis.
Hologic's Sahara was selected as the sole bone density system for this program because of its small size, light weight, portability, and ease of use.
Hologic, Inc. develops, manufactures and markets proprietary x-ray and ultrasound systems. With more than 5,700 installations worldwide, the Company's QDR and ultrasound bone densitometers are used for the assessment of bone density to assist in the diagnosis and monitoring of metabolic bone diseases such as osteoporosis. Osteoporosis progresses as a symptomless disease characterized by bone loss and deterioration of the skeleton, leading to bone fragility and increased risk of fractures. According to the National Osteoporosis Foundation, 28 million Americans are affected by osteoporosis, and left unchecked, that number is predicted to increase to 41 million by 2015.
Hologic's subsidiary, FluoroScan Imaging Systems, Inc., 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.
This News Release contains forward 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 growing acceptance of bone density testing in the primary care market and, in particular, the Company's optimism that the Sahara will become the product of choice for office-based physicians. Factors that could cause future results to differ from these expectations include, without limitation, the following: the ability of the Company to accurately predict the demand for its products in these emerging markets and to develop products and product enhancements and marketing strategies to address successfully these markets; risks related to the Company's dependence on a third party, PSS, to penetrate and increase its presence in certain targeted markets; technical innovations that could render products marketed or under development by the Company obsolete; competition; reimbursement policies for bone density testing; regulatory approval and market acceptance of drug therapies for osteoporosis; and technical and regulatory risks associated with the enhancement of existing products and the development of new products. 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 forward-looking statements contained herein speak only as of the date of this News Release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revision to any such statement 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)
ASSETS
June 27, September 27,
1998 1997
CURRENT ASSETS:
Cash and cash equivalents $45,930,265 $28,091,933
Short-term investments 42,446,613 56,173,247
Accounts receivable, less
reserves of $1,460,000 31,760,653 29,231,105
Inventories 17,996,382 13,204,528
Prepaid expenses and other
current assets 4,889,993 4,067,715
Total current assets 143,023,906 130,768,528
PROPERTY AND EQUIPMENT, at cost:
Equipment 8,281,091 6,397,509
Furniture and fixtures 1,875,200 1,655,557
Leasehold improvements 1,712,208 1,687,523
11,868,499 9,740,589
Less - Accumulated depreciation
and amortization 6,031,995 5,036,017
5,836,504 4,704,572
Other assets, net 19,373,972 9,194,142
$168,234,382 $144,667,242
LIABILITIES AND STOCKHOLDERS' EQUITY
June 27, September 27,
1998 1997
CURRENT LIABILITIES:
Line of credit $1,406,133 $82,764
Accounts payable 5,851,798 5,232,270
Accrued expenses 12,310,971 9,297,552
Deferred revenue 10,719,359 3,287,924
Total current liabilities 30,298,261 17,900,510
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value -
Authorized - 30,000,000 shares
Issued and outstanding -
13,359,652 and 13,111,442
shares, respectively 133,597 131,114
Capital in excess of par value 93,924,436 91,668,270
Retained earnings 44,871,604 35,798,846
Cumulative translation
adjustment (983,516) (831,498)
Total stockholders' equity 137,946,121 126,766,732
$168,234,382 $144,667,242
HOLOGIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Nine Months Ended
June 27, June 28, June 27, June 28,
1998 1997 1998 1997
REVENUES:
Product sales $33,569,051 $25,846,988 $88,163,369 $79,275,601
Other revenues 856,779 1,100,949 2,580,342 2,781,967
34,425,830 26,947,937 90,743,711 82,057,568
COSTS AND EXPENSES:
Cost of product sales 15,910,124 11,941,298 43,312,401 36,344,625
Research and
development 2,335,123 2,225,704 7,179,799 6,162,790
Selling and marketing 8,187,926 4,734,783 22,776,948 13,826,980
General and
administrative 2,710,210 2,027,462 7,287,407 7,726,109
29,143,383 20,929,247 80,556,555 64,060,504
Income from
operations 5,282,447 6,018,690 10,187,156 17,997,064
Interest income 1,628,890 1,384,626 4,409,961 3,717,041
Other expense (121,907) (7,013) (342,359) (68,607)
Income before provision
for income taxes 6,789,430 7,396,303 14,272,758 21,645,498
PROVISION FOR INCOME
TAXES 2,500,000 2,650,000 5,200,000 7,840,000
Net income $4,289,430 $4,746,303 $9,072,758 $13,805,498
NET INCOME PER COMMON AND
COMMON EQUIVALENT SHARE:
Basic earnings
per share $ .32 $ .36 $ .69 $ 1.07
Diluted earnings
per share $ .31 $ .35 $ .66 $ 1.01
WEIGHTED AVERAGE
NUMBER OF
COMMON SHARES
OUTSTANDING 13,334,355 13,035,419 13,221,227 12,956,335
WEIGHTED AVERAGE NUMBER
OF COMMON AND DILUTIVE
POTENTIAL COMMON
SHARES OUTSTANDING 13,806,564 13,676,353 13,785,098 13,658,336
SOURCE Hologic, Inc.
CONTACT: Glenn Muir, Vice President, Finance, of Hologic, 781-890-2300, or Investor Relations at Hologic, 781-684-3377 >>>
Steve |
