Hologic brings back Cumming as CEO

July 18 Thu Jul 18, 2013 7:51pm EDT

July 18 (Reuters) - Diagnostic device maker Hologic Inc said its former chief executive Jack Cumming will return to the helm and undertake a review of its businesses, after its current CEO stepped down for personal reasons.

Hologic shares were up 5 percent at $21 in after-hours trading. They closed at $19.97 on the Nasdaq on Thursday.

Cumming served as Hologic CEO between 2001 and 2009 and succeeds Robert Cascella, who took over from him. Cascella will remain an adviser to the company through the end of November.

Hologic Chairman David LaVance said Cumming will undertake a full assessment of its businesses, review the integration progress of a recent acquisition, and evaluate the company's capital allocation and capital return policies.

Bedford, Massachusetts-based Hologic spent $3.75 billion last year to buy diagnostic test firm Gen-Probe Inc, financing the deal through a combination of cash and debt.

"They made an expensive acquisition (and) people are generally unhappy with it," ISI Group analyst Vijay Kumar said.

"I think what this change signals that the board is listening to shareholders."

The company also mostly reaffirmed the third-quarter forecasts that it provided in May. It now expects revenue of about $626 million and adjusted profit of 38 cents per share.

Analysts expect a profit of 37 cents per share on revenue of $626.82 million, according to Thomson Reuters I/B/E/S.

Kumar said the fact that the maker of mammography and orthopedic imaging systems seems to have made Wall Street's numbers this quarter was a positive, given the overall weak industry.

Intuitive Surgical Inc on Thursday slashed its 2013 sales forecast citing disappointing demand for its surgical robots.

Hologic will report on August 5 results for its third quarter ended June 29.