Hologic slashes outlook as losses widen
|Hologic CEO Rob Cascella|
Hologic ($HOLX) is still sorting out its business units after buying Gen-Probe for $3.8 billion, and the company took a deeper loss in the second quarter despite a 30% increase in total sales.
The diagnostics giant posted a $51.1 million net loss on the quarter, topping a $40.3 million charge in the same period last year thanks to spiking selling costs and a 69.4% jump in R&D spending.
However, on the revenue side, Hologic continues to see the benefits of the Gen-Probe buy, watching its diagnostics revenue nearly double to $296.5 million. Breast health sales stayed mostly flat at $220.1 million as declines in product sales negated an increase in service revenues from digital mammography. Gynecological surgery revenue slipped 4.5% to $73.7 million, while skeletal health declined 4.7% to $22.4 million.
Now Hologic is trimming its full-year revenue guidance, expecting up to $2.55 billion in sales--27% growth over last year--which is down from the high end of $2.64 billion the company forecast at the end of 2012.
But CEO Rob Cascella said Hologic's core business is still competitive, and the company has been paring down its units to be more efficient, in January selling the Lifecodes segment to Immucor for $85 million and shuttering an Indiana Breast Biopsy Solutions facility.
"The fundamental long-term revenue growth drivers of our business remain strong," Cascella said in a statement. "Adoption of our 3-D mammography is accelerating with a growing backlog of sales orders in our breast health business. The Gen-Probe acquisition has greatly strengthened our diagnostics business, and we are seeing increasing numbers of diagnostics account conversions and competitive wins."
- read Hologic's full results