Hologic takes hit in fourth quarter

November 24, 1999

Hologic has experienced a financially challenging year, due in part to its acquisition of Direct Radiography Corp., and in part to a soft market for bone densitometry. The Bedford, MA, company posted sharply lower fiscal 1999 (end-September) results this

Hologic has experienced a financially challenging year, due in part to its acquisition of Direct Radiography Corp., and in part to a soft market for bone densitometry. The Bedford, MA, company posted sharply lower fiscal 1999 (end-September) results this month, reporting revenues of $84.1 million as compared with $115.6 million in 1998, and a net loss of $3.7 million as compared with net income of $10.4 million the previous year. In its fourth quarter the company saw revenues of $20.1 million, compared with $24.8 million in 1998, and sustained a net loss of $3.2 million, compared with net income of $1.3 million. Without the acquisition of DRC, which was finalized in June (SCAN 6/23/99), Hologic’s net losses would have totaled $315,000 for the fourth quarter and would have been negligible for the fiscal year.

Sales in Hologic’s bone densitometry business were less brisk than the company had hoped, particularly in the U.S. primary care market. Hologic saw decreased demand for its DXA systems, and slower sales of its Sahara ultrasound bone sonometer. In an effort to boost its business, Hologic has bulked up its direct sales team and increased its physician education activities, as well as moving to streamline its U.S. operations, the company said.