Women's imaging vendor Hologic saw a boost in revenues for both its fourth quarter and full year (end-September 28), but profitability was affected by a $1.1 billion charge for impairment of goodwill.
For the quarter, Hologic's revenue totaled $622.1 million, an increase of 5.7% compared with revenue of $588.5 million in the fourth quarter of fiscal 2012. For the year, Hologic's revenue totaled $2.49 billion, up 24% compared with $2 billion a year ago.
The growth was driven primarily by the inclusion of revenues from diagnostics firm Gen-Probe, which Hologic bought in August 2012.
Other factors driving revenue growth included record placements of 3D Dimensions tomosynthesis systems, an increase in service revenue from the company's installed base of digital mammography systems, and higher sales of MyoSure hysteroscopic tissue removal systems and breast biopsy products.
Offsetting revenue growth was a decline in sales of legacy products, such as the company's 2D Selenia and 2D Dimensions mammography systems as buyers shift to 3D units. Foreign currencies had a negligible effect on revenues compared with the fourth quarter of fiscal 2012.
The company experienced a loss for the quarter, posting a net loss of $1.1 billion, compared with a net loss of $77.8 million in the fourth quarter of fiscal 2012. The loss was attributable to a $1.1 billion charge for impairment of goodwill in its Diagnostics business. Hologic said it had built up significant goodwill as a result of recent acquisitions, and after an internal review determined that some of this goodwill was impaired, leading to the writedown.
The large fourth-quarter loss also sank the company's year-end numbers, as Hologic reported a net loss of $1.19 billion, compared with a net loss of $73.6 million for the 12 months ended on September 29, 2012.
By product segment for the full year, Hologic's Breast Health revenue grew 1.7% to $234 million, compared with $230 million in 2012. Revenue growth was driven by a $14.6 million increase in product revenues from strong 3D Dimensions sales, and service revenue growth of $3.6 million. Hologic continues to experience an increasing sales shift to 3D Dimensions from its 2D Selenia and 2D Dimensions systems.
Hologic expects first-quarter fiscal 2014 revenues of $600 million to $610 million. Year over year, this represents an increase of 5% to 7% over first-quarter revenues.
