Diagnostics firm Hologic ($HOLX) saw its profits drop by more than $12 million in the third quarter compared to the previous fiscal year, but the company is confident its $3.7 billion cash buyout of Gen-Probe will bring a bright future.
Hologic's net income fell from $36.2 million in Q3 of fiscal year 2011, to $23.6 million in the last quarter, but the company's revenues jumped 4.2% to $470.2 million. Hologic credited the boost to 3.1% sales growth in its breast health unit, which markets digital mammography services, and 10.6% year-to-year growth in its diagnostics wing.
The company is expecting more growth for Q4, predicting revenues of $480 million, a figure that doesn't include the Gen-Probe buy. Pending a Gen-Probe shareholder vote, the deal is expected to close Wednesday, after which Hologic will gain a bevy of marketable molecular diagnostics products, creating "a leading diagnostics franchise," company CEO Rob Cascella said in a statement.
And he has reason to be optimistic. Hologic is set to acquire tests for chlamydia, gonorrhea, human papillomavirus and trichomoniasis. Furthermore, Hologic plans to retain some of Gen-Probe's staff and leadership, keeping CEO Carl Hull on board as a senior vice president to aid in the transition.
- read Hologic's release