Hologic ($HOLX) is trudging through 2013 with a new CEO, a troubling record of net losses and, now, lowered expectations for full-year revenue, but the diagnostics giant still believes its core business will eventually right the ship.
In its fiscal third quarter, Hologic posted an $11 million net loss, a drop from $23.6 million in profit in the same period last year. Revenue jumped 33.2% to $626.1 million thanks largely to Hologic's $3.8 billion buyout of Gen-Probe, but with that acquisition came a spike in costs, and Hologic swung to a loss on rising sales and R&D charges.
On the quarter, diagnostics sales leapt to $297.4 million, 87.4% above last year's pre-Gen-Probe Q3, while breast health revenue increased 8.8% to $230 million and gynecological surgery sales dipped 2.4% to $75.8 million.
Now the company is expecting up to $2.5 billion for 2013, 25% above 2012 but more than 5% below the number Hologic forecasted at the start of the year.
And revenue guidance isn't all that's different at the Massachusetts company. Last month, CEO Rob Cascella stepped down after 11 years at Hologic, citing personal reasons in a terse announcement and leaving former chief Jack Cumming in charge. Despite all the changes over the past year, Cumming said Hologic is still committed to its core business and that the ongoing integration of Gen-Probe will continue to drive revenue growth.
"Although we have lowered expectations for the remainder of the fiscal year, I am confident we have the necessary platforms and breadth of assets to drive organic growth and deliver strong profitability," Cumming said in a statement. "We are committed to improving our performance and execution in order to capitalize on the opportunities in the changing market landscape and position Hologic for success."
So far, much of that positioning has come in the form of weight loss. Hologic sold off its Lifecodes segment to Immucor for $85 million in January, and the company shed 141 jobs when it shuttered an Indiana facility. Now, the company is counting on its fast-growing women's health diagnostics business to brighten the future, signing a 5-year partnership in June with rival and fellow giant-in-repose Quest Diagnostics ($DGX) to develop and market new products in that space.
- read Hologic's full results