Hologic, Inc. (HOLX) reported fourth-quarter earnings of 28 cents per share, which beat the Zacks Consensus Estimate of 26 cents. The company earned 30 cents in the year-ago quarter. For full fiscal 2009, the company earned $1.17 per share, which was above the Zacks Consensus Estimate by 2 cents but below the year-ago earnings by a cent.
 
Quarterly results
 
Revenues for the quarter were $402.8 million, in contrast to $442.5 million in the year-ago quarter thus representing a 8.9% decline. The decrease was primarily driven by the year-over-year decline in sales of Selenia systems, attributable primarily to the current economic environment, which resulted in delays and reductions in hospital capital spending and longer sales cycles. This overall decline was partially offset by growth in Diagnostics and Surgical product sales, increase in service and other revenues primarily related to increased installed base of Selenia full-field digital mammography systems.
 
In terms of business segments, Breast Health revenues came in at $174.8 million, down 20.9% from the $221 million recorded in the year-ago quarter. This decrease was due to the slowdown in the demand for the Selenia system. Diagnostic revenues for the quarter came in at $138.7 million, inclusive of $9.7 million from Third Wave, as against $133.7 million for the same period in fiscal 2008, up 3.7%. Revenues from the GYN surgical segment came in at $67.3 million for the quarter and increased 13% compared to the third quarter of 2008. Sales from the Skeletal Health segment were $22 million, compared to $28.1 million in the year-ago quarter.
 
Total costs and expenses in the reported quarter declined 38 % to $327.1 million. The decrease is attributable to the management’s constant efforts to reduce expenses. Research and development spend increased to $22.70 million from $20.94 million in the year-ago quarter, while selling and marketing expenses declined to $56.57 million from $67.79 million in the prior year period. General and administrative expenses declined to $38.17 million from $38.29 million.
 
During the quarter, the company repaid $96 million of the $540 million term loan borrowed in 2008 for the acquisition of Third Wave. The company has repaid $390 million as of Nov 09, 2009.
 
Outlook
 
Management expects fiscal first-quarter revenues between $400 million and $405 million and earnings between 24 cents and 26 cents.
 
Fiscal year results
 
For full fiscal 2009, revenues were $1.637 billion, compared to $1.674 billion in fiscal 2008, down 2%. The decrease was primarily attributable to the year-over-year decline in sales of Selenia systems, which is largely due to the stringent economic and capital spending environment.
 
Outlook
 
For fiscal 2010, revenues are expected between $1.625 billion to $1.650 billion and earnings between $1.15 and $1.19.
 
Currently we are Neutral on the shares.
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