Analogic Corporation Reports Results for Its Second Quarter 2007
Analogic Corporation Reports Results for Its Second Quarter 2007
PEABODY, Mass., Mar 07, 2007 (BUSINESS WIRE) — Analogic Corporation (NASDAQ: ALOG), a leading designer and
manufacturer of high-precision health and security imaging equipment,
announced today results for its second quarter ended January 31, 2007.
Revenues from continuing operations for the second quarter ended
January 31, 2007, were $88,358,000, compared with the prior year’s
second quarter revenues from continuing operations of $100,011,000, a
decrease of 12%. Income from continuing operations for the second
quarter before discontinued operations and the cumulative effect of a
change in accounting principle was $5,420,000, or $0.39 per diluted
share, compared to $9,097,000, or $0.66 per diluted share, a year
earlier.
Income attributable to the gain on disposal of discontinued
operations for the prior year’s second quarter ended January 31, 2006,
was $20,640,000, or $1.50 per diluted share.
Net income for the second quarter ended January 31, 2007, was
$5,420,000, or $0.39 per diluted share, compared to $29,737,000, or
$2.16 per diluted share, for the prior year’s second quarter. The
Company had previously reported a net loss of $5,360,000, or a $0.39
net loss per diluted share in the current year’s first quarter ended
October 31, 2006. The first quarter ended October 31, 2006, included
pre-tax asset impairment charges of $9,705,000 associated with the
Company’s digital radiography systems business.
Revenues from continuing operations for the six months ended
January 31, 2007, were $163,960,000, compared with the prior year’s
six-month revenues from continuing operations of $186,421,000, a
decrease of 12%. Income from continuing operations before discontinued
operations and the cumulative effect of a change in accounting
principle for the six-month period was $60,000, or $0.00 per diluted
share, compared to $10,160,000, or $0.74 per diluted share, for the
same period a year earlier. The financial results for the six months
ended January 31, 2006, include pre-tax restructuring and asset
impairment charges of $2,707,000, of which $2,216,000 was associated
with the Company’s former SKY Computers subsidiary.
Income attributable to discontinued operations, the cumulative
effect of a change in accounting principle, and the gain on disposal
of discontinued operations for the six months ended January 31, 2006,
was $20,919,000, or $1.52 per diluted share. The $20,919,000 includes
a net gain of $20,640,000 after taxes, or $1.50 per diluted share,
from the sale of our Camtronics Medical Systems subsidiary on November
1, 2005.
Net income for the first six months ended January 31, 2007, was
$60,000, or $0.00 per diluted share, compared with $31,079,000, or
$2.26 per diluted share, for the same period a year earlier.
The decrease in revenue was due primarily to the expected decline
in the sales of the Company’s EXplosive Assessment Computed Tomography
(EXACT™) security imaging systems. Security technology product
revenues were down $11,105,000, or 44%, over the prior year’s second
quarter, as the Company shipped 18 EXACTs compared to 44 units a year
earlier. As a result of the $31-36 million order the Company received
for EXACTs in September 2006, a more regular shipment schedule is
anticipated, but at a significantly lower rate than the Company
enjoyed in the first half of last year, when 79 units were shipped.
Engineering revenues were lower as well because a number of
engineering projects were completed and transferred to production
during the quarter.
Ed Becker, President and Chief Operating Officer, noted, “The core
medical technology business continued its strong performance this
quarter. Shipments of Data Acquisition Systems (DASs) for CT were up
18% over a very strong second quarter a year ago, and shipments of
power systems for Magnetic Resonance Imaging (MRI) systems were up
11%. Sales of ultrasound probes by the Company’s Sound Technology,
Inc., (STI) subsidiary exceeded expectations, and shipments of
clinical ultrasound systems by B-K Medical improved over the prior
second quarter.”
During the quarter, prototypes of the new KING COBRA™
Explosives Detection System (EDS), designed to screen checked luggage
at small to mid-sized airports, and the XLB1100 EDS, designed for
high-speed screening of checked luggage at high-traffic airports, were
placed at Boston’s Logan International Airport for data gathering and
are on schedule to be submitted to the U.S. Transportation Security
Administration (TSA) for certification over the course of the calendar
year. Prototypes of the COBRA checkpoint security system are being
prepared for shipment to four airports in the very near future, and
the system should be submitted for certification shortly thereafter.
The AN6400 EXACT system upgrade has completed field evaluations. The
Company is now awaiting a TSA determination of what airports should
receive system upgrades.
Bernard Gordon, Executive Chairman (Principal Executive Officer),
said, “During our first-quarter earnings call, a ten-point program to
get the Company back on track was articulated. Overall, I believe we
are making considerable progress on that program. Total operating
expenses decreased by $2,938,000 for the quarter, compared to a year
earlier, due to lower research and development costs and lower general
and administrative expenses. We are continuing to evaluate the various
aspects of our digital radiography businesses as well as our overall
business model, and are making good progress in our search for a new
Chief Executive Officer. As a result, I believe we are building a
strong foundation for renewed long-term growth for the Company as The
World Resource for Health and Security Technology.”
CONFERENCE CALL
Analogic will conduct an investor conference call on Thursday,
March 8 at 11:00 a.m. ET to discuss the results for the second quarter
and recent developments. To participate in the conference call, dial
1-866-823-6992, or 1-334-323-7225 for international callers,
approximately five to ten minutes before the conference is scheduled
to begin. Inform the operator that you wish to join the Analogic
conference, Pass Code 03391. You will then be asked for your name,
organization, and telephone number and be connected to the conference.
To listen to the live audio webcast, visit www.analogic.com
approximately five to ten minutes before the conference is scheduled
to begin.
A replay of the conference call webcast will be archived on the
Company’s website at www.analogic.com approximately three hours after
the call is completed and will be available through midnight (ET)
Thursday, March 29, 2007.
A telephone digital replay will be available approximately two
hours after the call is completed through midnight (ET) March 15,
2007. To access the digital replay, dial 1-877-919-4059, or
1-334-323-7226 for international callers. The conference ID number is
46734406. For more information on the conference call, visit
www.analogic.com, call 978-326-4213, or email proberts@analogic.com.
Analogic Corporation is a leading designer and manufacturer of
advanced health and security systems and subsystems sold primarily to
Original Equipment Manufacturers (OEMs). The Company is recognized
worldwide for advancing the state of the art in Computed Tomography
(CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging
(MRI), and Patient Monitoring. For more information, visit
www.analogic.com.
This press release contains the Company’s or management’s
intentions, hopes, beliefs, expectations, or predictions. These are
considered “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements (statements that are not historical facts) in this
presentation are made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Investors are
cautioned that all forward-looking statements, including statements
about product development, market and industry trends, strategic
initiatives, regulatory approvals, sales, profits, expenses, price
trends, research and development expenses and trends, and capital
expenditures involve risk and uncertainties. Actual results may differ
materially from those indicated by such statements as a result of
various factors, including those discussed in the Company’s periodic
reports filed with the SEC under the heading “Business Environment and
Risk Factors.” In addition, the forward-looking statements included in
this press release represent the Company’s views as of March 7, 2007.
The Company anticipates that subsequent events and developments will
cause the Company’s views to change. However, while the Company may
elect to update these forward-looking statements at some point in the
future, the Company specifically disclaims any obligation to do so.
These forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to March 7,
2007.
Consolidated Statements of Operations (in thousands, except share
data)
Three Months
Ended Six Months Ended
January 31, January 31,
----------------- -------------------
(Unaudited) (Unaudited)
2007 2006 2007 2006
-------- -------- --------- ---------
Net revenue:
Products $82,562 $91,964 $153,310 $171,685
Engineering 3,721 6,119 5,385 9,931
Other 2,075 1,928 5,265 4,805
-------- -------- --------- ---------
Total net revenue 88,358 100,011 163,960 186,421
-------- -------- --------- ---------
Cost of sales:
Products 50,686 53,674 95,275 101,497
Engineering 3,435 4,109 6,298 9,842
Other 1,595 1,192 3,082 2,578
Asset impairment charges -- -- 8,625 1,179
-------- -------- --------- ---------
Total cost of sales 55,716 58,975 113,280 115,096
-------- -------- --------- ---------
Gross margin 32,642 41,036 50,680 71,325
-------- -------- --------- ---------
Operating expenses:
Research and product development 12,680 14,149 24,258 27,176
Selling and marketing 7,494 7,274 14,496 14,628
General and administrative 8,451 9,637 17,490 18,301
Restructuring and asset
impairment charges -- 503 1,080 1,528
-------- -------- --------- ---------
Total operating expenses 28,625 31,563 57,324 61,633
-------- -------- --------- ---------
Income (loss) from operations 4,017 9,473 (6,644) 9,692
-------- -------- --------- ---------
Other income (expense):
Net interest income 3,146 2,469 6,369 4,502
Equity gain (loss) in
unconsolidated affiliates (53) 115 (131) (455)
Other 155 199 33 42
-------- -------- --------- ---------
Total other income 3,248 2,783 6,271 4,089
-------- -------- --------- ---------
Income (loss) from continuing
operations before income taxes
and cumulative effect of change
in accounting principle 7,265 12,256 (373) 13,781
Provision (benefit) for income
taxes 1,845 3,159 (433) 3,621
-------- -------- --------- ---------
Income from continuing
operations before discontinued
operations and cumulative
effect of change in accounting
principle 5,420 9,097 60 10,160
Income from discontinued
operations (net of income tax
provision of $126) -- -- -- 159
Gain on disposal of discontinued
operations (net of income tax
of $9,104) -- 20,640 -- 20,640
Cumulative effect of change in
accounting principle (net of
income tax of $61) -- -- -- 120
-------- -------- --------- ---------
Net income $5,420 $29,737 $60 $31,079
-------- -------- --------- ---------
Basic earnings per share:
Income from continuing
operations $0.39 $0.67 $-- $0.75
Income from discontinued
operations, net of tax -- -- -- 0.01
Gain on disposal of discontinued
operations, net of tax -- 1.51 -- 1.51
Cumulative effect of change in
accounting principle, net of
tax -- -- -- 0.01
-------- -------- --------- ---------
Net income $0.39 $2.18 $-- $2.28
Diluted earnings per share:
Income from continuing
operations $0.39 $0.66 $-- $0.74
Income from discontinued
operations, net of tax -- -- -- 0.01
Gain on disposal of discontinued
operations, net of tax -- 1.50 -- 1.50
Cumulative effect of change in
accounting principle, net of
tax -- -- -- 0.01
-------- -------- --------- ---------
Net income $0.39 $2.16 $-- $2.26
-------- -------- --------- ---------
Dividends declared per share $0.10 $0.10 $0.20 $0.18
Weighted average shares
outstanding:
Basic 13,866 13,625 13,846 13,628
Diluted 13,982 13,799 13,960 13,766
Condensed Consolidated Balance Sheets (in thousands)
January 31, July 31,
2007 2006
----------- -----------
(Unaudited) (Audited)
Assets:
Cash, cash equivalents and marketable
securities $262,370 $258,237
Accounts and notes receivable, net 49,411 52,112
Inventories 59,452 58,943
Other current assets 22,063 21,543
----------- -----------
Total current assets 394,296 390,835
----------- -----------
Property, plant and equipment, net 80,624 81,853
Other assets 14,354 15,957
----------- -----------
Total Assets $489,274 $488,645
----------- -----------
Liabilities and Stockholders' Equity:
Accounts payable $17,293 $17,372
Accrued liabilities 21,717 24,111
Advance payments and deferred revenue 9,692 9,386
Accrued income taxes 7,420 5,011
----------- -----------
Total current liabilities 56,122 55,880
----------- -----------
Deferred income taxes 910 840
----------- -----------
Total long-term liabilities 910 840
----------- -----------
Stockholders' Equity 432,242 431,925
----------- -----------
Total Liabilities and Stockholders'
Equity $489,274 $488,645
----------- -----------
SOURCE:
Analogic Corporation
CONTACTS:
Analogic Corporation
John J. Millerick
978-326-4000
Senior Vice President & CFO
Paul M. Roberts
978-326-4213
Director of Communications
proberts@analogic.com