(Adds CEO comments from conference call)
Feb 3 Medical device maker Hologic Inc
reported a better-than-expected adjusted quarterly profit as it
sold more 3D systems that help detect breast cancer, and its
CEO said he would pursue the strategic review started by his
Hologic shares rose 4 percent in extended trading.
"Our expectation at this time is that there will be no major
changes to our corporate structure, though we may pursue some
select smaller divestitures," said Stephen MacMillan on a
ISI Group analyst Vijay Kumar said Hologic would likely sell
its blood screening business and that Spanish pharmaceutical
company Grifols could be a buyer.
Grifols was a customer of Hologic's collaboration with
Novartis AG on blood screening tests.
MacMillan, the former Stryker Corp head who became
Hologic CEO in December as part of a settlement with activist
investor Carl Icahn, said he was building on the strategic
review started by former CEO Jack Cumming.
MacMillan plans to expand Hologic's international business,
which accounted for only a quarter of sales and said the company
would focus on stopping the decline in sales in key products and
focus on generating growth in 2015.
Hologic has been struggling with lower spending by
hospitals, slower growth in the use of its 3D mammography
systems due to a lack of reimbursement and falling sales of its
cancer detection test.
Hologic said revenue from its breast health business rose
about 3 percent to $226.5 million in the first quarter.
Hologic posted a net loss of $5.4 million, or 2 cents per
share, for the quarter ended Dec. 28, compared with a net income
of $3.1 million, or 1 cent per share, a year earlier.
Excluding items, Hologic earned 34 cents per share, ahead of
analysts' average estimate of 31 cents per share, according to
Thomson Reuters I/B/E/S.
Revenue fell 3 percent to $612.4 million, but beat analysts'
average estimate of $609.7 million.
The company raised the lower end of its earnings forecast by
2 cents for the year ending September. The company said it
expects adjusted earnings of $1.34-$1.38 per share.
The company's shares closed down 4 percent at $20.47 on the
Nasdaq on Monday.
(Reporting By Vrinda Manocha in Bangalore; Editing by Sriraj
Kalluvila and Don Sebastian)