Analogic Posts Steep Drop In 3Q Profit

PEABODY, Mass. (AP) — Analogic Corp. reported a 66 percent drop in fiscal third-quarter profit Thursday on falling sales, missing Wall Street projections and sending shares down sharply in after-hours trading.

The company, which makes health and security imaging equipment, reported a profit of $2.3 million, or 18 cents per share, for the quarter ended April 30, compared with $6.7 million, or 50 cents per share, a year earlier.

Stripping out one-time costs, Analogic said it earned 24 cents per share, still well below the average analyst forecast of 36 cents, according to Thomson Reuters.

Sales dropped 9 percent to $93.6 million from $102.8 million.

"Economic conditions continue to put pressure on capital equipment spending," Chief Executive Jim Green said in a statement. "We expect these trends to continue through the next couple of quarters, however, we will continue to manage our business for profitability and positive cash flow."

Sales in the company's largest segment, medical imaging, fell by $8.5 million to $50 million, offsetting modest gains in digital radiography and security equipment.

The company's stock plunged $3.45, or 9 percent, to $35 in after-hours trading, after closing up 11 cents at $38.45 during the regular session.