Cytyc merger boosts Hologic's Q2 financials

Women's imaging vendor Hologic reported substantial revenue increases for its second quarter of 2008, which the company attributed to the new product lines it acquired when it merged with Cytyc last October.

For the period (end-March 29), the Bedford, MA-based company posted revenues of $431 million, a 138% increase compared to $181.1 million for the same period in 2007. Of this increase, $189.2 million came from Cytyc's products, Hologic said.

For the second quarter, Hologic reported net income of $56 million, a 61% increase compared to $21.6 million in the second quarter of 2007.

Revenues in the company's Breast Health segment increased 41%, from $158 million to $223.3 million in the second quarter, which Hologic attributed to sales of its Selenia full-field digital mammography systems (FFDM) with R2 computer-aided detection (CAD) software and Cytyc's Mammosite product.

Revenues in the company's Skeletal Health segment increased 22%, from $23.1 million for the same period of 2007 to $28.1 million for 2008, due to a boost in the number of mini C-arms and bone densitometry systems sold during the quarter.

For the six months ending March 29, Hologic's revenues increased 133% to $802.5 million, compared to $344.3 million in 2007. The company posted a net loss of $302.6 million for the six-month period, compared to a net income of $37.7 million for the same period in 2007.

Included in the fiscal 2008 year-to-date results were first-quarter charges relating to the Cytyc merger of $370 million, which the company said were attributable to acquired in-process R&D costs, $42.3 million attributable to the increase in cost of revenues relating to the write-up of inventory to fair market value, and $45.5 million attributable to the amortization of intangibles.

In other Hologic news, the company said that it received an order for 17 Selenia Mobile FFDM systems from Netherlands Breast Cancer Screening Tender. The systems will be installed starting in the summer.

The company also reported that it has inked a deal with Chinese imaging equipment manufacturer Mindray Medical to sell that company's DP-6600 ultrasound scanner. Hologic is displaying the system along with other ultrasound-guided products in its portfolio at this week's American Society of Breast Surgeons conference in New York City.

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Hologic joins Nasdaq-100, December 20, 2007

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