Hologic CEO Discusses F4Q2010 Results - Earnings Call Transcript
Hologic Inc. (
)
F4Q2010 Earnings Call Transcript
November 8, 2010 5:00 pm ET
Executives
Deb Gordon – VP, IR
Rob Cascella – President & CEO
Glenn Muir – EVP, Finance and Administration and CFO
Steve Williamson – SVP and General Manager, GYN Surgical Products
Analysts
Thomas Kouchoukos – Stifel Nicolaus
Sameer Harish – Needham & Company
Jayson Bedford – Raymond James
David Lewis – Morgan Stanley Smith Barney
Josh Jennings – Jefferies & Company
Tycho Peterson – JPMorgan
David Clair – Piper Jaffray
Amit Bhalla – Citi
Amit Hazan – Gleacher & Company
Presentation
Operator
Compare to:
Previous Statements by HOLX
»
Hologic F3Q10 (Qtr End 06/26/2010) Earnings Call Transcript
»
Hologic Q2 2010 Earnings Call Transcript
»
Hologic Inc. Q1 2010 Earnings Call Transcript
»
Hologic, Inc. F4Q09 (Qtr. End 09/26/09) Earnings Call Transcript
Good afternoon, and welcome to the Hologic Incorporated fourth quarter and fiscal year 2010 earnings conference call. My name is Rebecca, and I am your operator for today’s call. Today’s call is being recorded. All lines have been placed on mute.
I would now like to introduce Deborah Gordon, Vice President Investor Relations to begin the call.
Deb Gordon
Thank you, Rebecca. Good afternoon, and thank you for joining us for Hologic’s fourth quarter and fiscal year 2010 earnings conference call. I encourage everyone to visit Hologic’s Investor Relations page of our Web site in order to view the PowerPoint presentation related to the comments that Glenn Muir, Hologic’s Chief Financial Officer will be making in his opening remarks.
The replay of this conference call will be archived on our Web site through Friday, November 26. Please also note that a copy of the press release discussing our fourth quarter and fiscal 2010 results, as well as our first quarter and fiscal year 2011 guidance is available in the Investor Relations section of our Web site under the heading Financial Results.
Before we begin, I would like to remind you of our Safe Harbor statements. Certain statements made by management of Hologic, Inc. during the course of this conference call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance, or achievements of Hologic to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include among others those detailed from time-to-time in the company’s filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based.
Also during this call, we will be discussing certain financial measures not prepared in accordance with Generally Accepted Accounting Principles or GAAP. A reconciliation of these non-GAAP financial measures to the related GAAP financial measures can be found in Hologic’s fourth quarter 2010 earnings release, including the financial tables in the release.
Please note that today’s call will consist of 30 minutes of opening remarks followed by a 30 minute question-and-answer session. We therefore ask each participant to please limit his or her question to just one with one follow-up if necessary. We do appreciate you may have additional questions, so please feel free to go back into the queue, and if time permits we’ll be more than happy to take your additional questions.
Before I turn the call over to Rob Cascella, I would like to remind you that Hologic management will be presenting at our annual investor meeting on November 30 at 8.00 am central time at RSNA in Chicago. The presentation will be webcast and the details may be found on the IR section of our Web site.
With that I would now like to turn the call over to Mr. Rob Cascella, President and Chief Executive Officer.
Rob Cascella
Thanks, Deb. Good afternoon, and thank you for dialing in to our conference call. Joining me on the call is Glenn Muir, our Executive Vice President and Chief Financial Officer; Steve Williamson, our General Manager of GYN Surgical Group; and David Harding, our General Manager of International Operations.
I will briefly review our quarterly performance highlights, and Glenn will discuss the financials for the quarter in greater detail and provide guidance for Q1 and fiscal ‘11. I will conclude with a brief look beyond 2011 and will then open up the call for Q&A.
We were extremely pleased that in light of a difficult economy and a seasonally slow quarter, our revenues exceeded guidance. Revenues for the quarter were $428 million compared to a range of $415 million to $420 million.
Revenue growth over the fourth quarter of last year was greater than 6% indicating a steady acceleration in growth from both prior year and prior quarter.
Earnings for the quarter on a non-GAAP basis were $0.30 versus $0.28 from a year ago, and in line with our guidance and for the year our revenues were $1.68 billion, an increase of approximately 3% when compared to last year, and earnings for the year on a non-GAAP basis were $1.18 compared to $1.17 from prior year. Glenn will provide a bit more detail on our financial performance, and what I’d like to do now is provide some operating highlight for our business segments.
Breast Health saw strong revenue in the quarter. In addition to service, we are seeing increased sales of our Dimensions systems fueled by both replacements in the U.S. and tomo abroad. ASPs are running relatively flat with the lower end Selenia pricing being offset by increased Dimensions.
An example would be that in the U.S., customers are either buying very low end systems or they are purchasing our Dimensions product. We believe that this trend will continue into fiscal ‘11.
In addition to mammography, our breast biopsy business continued to grow despite declining screening volumes. We saw continued adoption of our Eviva product, and in fact saw share gains as well.
Although Sentinelle contributed little in the terms of revenue for the quarter, since they were only a part of the company for the last seven weeks, we are pleased with the progress that we’ve made with respect to integration, sales training, and marketing support.
Read the rest of this transcript for free on seekingalpha.com
