Hologic Announces Financial Results For Fourth Quarter Of Fiscal 2015
MARLBOROUGH, Mass., Nov. 4, 2015 /PRNewswire/ -- Hologic, Inc. (Nasdaq: HOLX) announced today the Company's financial results for the fiscal fourth quarter ended September 26, 2015. The Company reported revenue of $702.8 million, GAAP diluted EPS of $0.09, and non-GAAP diluted EPS of $0.43.
Revenue for the fourth quarter of fiscal 2015 grew 12.2% on a constant currency basis, while non-GAAP diluted EPS increased 13.2%. These growth rates exclude from the prior year period the one-time benefit of amending the Company's license agreement with Roka Bioscience. This amendment added $20.1 million to revenue, and $0.05 to EPS, in the prior year results.
"Hologic's strong fourth quarter financial results capped off an outstanding year in which our people and our products enabled us to exceed expectations across the board," said Steve MacMillan, the Company's Chairman, President and Chief Executive Officer. "In the fourth quarter, revenue again increased at a double-digit rate on a constant currency basis excluding the one-time Roka benefit, while earnings per share grew even faster. And importantly, all four of our primary businesses grew in the United States and Internationally on a constant currency basis."
Key financial results for the fiscal fourth quarter are shown below. Throughout this press release, all dollar figures are in millions, except EPS. Unless otherwise noted, all results are on a reported basis, and are compared to the prior year period.
GAAP | Non-GAAP | ||||||
Q4'15 | Q4'14* | Change (Reported) | Q4'15 | Q4'14* | Change (Reported) | Change | |
Revenues | $702.8 | $660.6 | 6.4% | $702.8 | $660.6 | 6.4% | 9.7% |
Gross Margin | 54.0% | 52.2% | 180 bps | 64.6% | 64.7% | (10 bps) | 100 bps |
Operating Expenses | $253.7 | $253.1 | 0.3% | $218.7 | $199.1 | 9.9% | 9.9% |
Operating Margin | 17.9% | 13.9% | 400 bps | 33.5% | 34.6% | (110 bps) | 100 bps |
Net Income | $25.2 | $28.2 | (10.9%) | $127.1 | $120.0 | 5.9% | 18.9% |
Diluted EPS | $0.09 | $0.10 | (10.0%) | $0.43 | $0.43 | 0.0% | 13.2% |
Revenue Detail
Revenues grew in all four businesses globally on a constant currency basis, and at a double-digit rate in three of four businesses:
$s in millions | Q4'15 | Q4'14* | Change (Reported) | Change (Constant Currency, |
Diagnostics | $304.2 | $317.2 | (4.1%) | 4.4% |
Breast Health | $286.3 | $241.5 | 18.6% | 21.6% |
GYN Surgical | $86.8 | $78.5 | 10.6% | 12.9% |
Skeletal Health | $25.5 | $23.4 | 8.8% | 13.7% |
Total | $702.8 | $660.6 | 6.4% | 12.2% |
* These results include the one-time benefit of amending the Company's license agreement with Roka. Excluding this benefit (all of which was in the U.S.), Q4'14 total revenues would have been $640.5 million, non-GAAP gross margin would have been 63.6%, non-GAAP operating margin would have been 32.5%, non-GAAP net income would have been $106.9 million, non-GAAP diluted EPS would have been $0.38, and Diagnostics revenues would have been $297.1 million.
** Including the Roka benefit, Diagnostics revenue decreased (2.2%) in constant currency terms, and total revenue growth was 8.8%.
Other revenue highlights include:
- On a constant currency basis, revenues grew at double-digit rates both domestically and internationally. U.S. revenues of $538.1 million increased 7.7%, or 12.2% excluding the one-time Roka benefit from the prior year. International revenues of $164.7 million increased 2.5%, or 12.5% on a constant currency basis.
- In Breast Health, revenue from breast imaging products and service totaled $241.6 million, an increase of 23.1% on a reported basis and 26.2% on a constant currency basis, as uptake of Hologic's GeniusTM 3D MammographyTM systems continued to grow.
- In Diagnostics:
- Molecular diagnostics sales of $123.2 million decreased (9.0%) in constant currency. Excluding the one-time Roka benefit from the prior year, molecular diagnostics sales increased 5.1%, or 6.6% on a constant currency basis. Growth was primarily due to continued strength across Aptima® women's health products on the fully automated Panther® and Tigris® platforms.
- Cytology and perinatal sales of $120.8 million decreased (0.1%) on a reported basis, but increased 3.2% on a constant currency basis. International sales grew 10.3% on a constant currency basis, while domestic sales were flat.
- Blood screening revenue from Hologic's partner Grifols totaled $60.2 million, an increase of 2.3%. As previously discussed, the growth benefit from new business with the Japanese Red Cross annualized in the fourth quarter.
- In GYN Surgical, MyoSure® system sales of $32.1 million increased 37.2% on a reported basis, and 38.6% on a constant currency basis. NovaSure® system sales of $54.3 million decreased (0.4%) on a reported basis, but grew 2.3% on a constant currency basis.
- In Skeletal Health, revenue of $25.5 million grew 8.8% on a reported basis, and 13.7% in constant currency, reversing declines seen in the third quarter of fiscal 2015.
- In the fourth quarter, approximately 60% of total revenues were from disposables, 25% were from capital equipment, and 15% were from service and other sources.
Expense Detail
Gross margin was 54.0% on a GAAP basis, and 64.6% on a non-GAAP basis. Gross margin improved mainly due to strong domestic sales growth, favorable product mix in the Diagnostics and Breast Health divisions, and operational efficiencies. These benefits were partially offset by a stronger U.S. dollar.
Operating expenses were $253.7 million on a GAAP basis, and $218.7 million on a non-GAAP basis.
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