Hologic swings to 1Q profit but cuts 2009 outlook

BEDFORD, Mass. - Medical test maker Hologic Inc. said Monday it swung to a profit in its fiscal first quarter from a year-ago loss linked to its purchase of rival women's health company Cytyc Corp.

Hologic earned $48 million, or 19 cents per share, compared with last year's loss of $358.6 million, or $1.65 per share, which included a charge to acquire Cytyc's ongoing research and development. Excluding one-time items, Hologic earned 31 cents per share for the three months ended Dec. 27, 2008.

Revenue grew 16 percent to $429.2 million from $371.4 million.

The results beat expectations of analysts surveyed by Thomson Reuters, who predicted profit of 29 cents per share on revenue of $427.3 million, on average.

For the quarter, breast health revenue edged up to $199.1 million from $197 million. Due to its July 2008 buyout of Third Wave Technologies, diagnostic revenue grew to $134.6 million from $100.3 million. Revenue from women's surgical products including the NovaSure endometrial ablation system increased to $68 million from $49.9 million. Skeletal heath revenue rose to $27.5 million from $24.3 million.

But sales of Hologic's Selenia digital mammogram system fell as hospitals cut back on spending due to the weak economy and tight credit markets. The company lowered its fiscal 2009 outlook as a result.

Hologic said its backlog is $339 million.

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