- Strategic Sale Process Underway; Re-Focused Investment on Core Businesses and Reduced Annual Operating Expenses by Approximately $24M; Announces Fiscal 2018 Outlook
PEABODY, Mass., Sept. 19, 2017 (GLOBE NEWSWIRE) -- Analogic Corporation (Nasdaq:ALOG), enabling the world’s medical imaging and aviation security technology, today announced results for its fourth quarter and year-ended July 31, 2017.
Highlights during the fourth quarter of fiscal 2017 included:
- Revenue of $111.6 million with gross margin of 34%
- GAAP operating margin of -14%; non-GAAP operating margin of -4%
- GAAP diluted EPS of ($1.98); non-GAAP diluted EPS of $0.00
- Operating cash flow of $23 million
- Completed Ultrasound restructuring and portfolio optimization lowering our overall annual operating expenses by $24 million
- Checkpoint CT system, ConneCT, recently received TSA certification, providing for U.S. airport deployment
- Rapid DNA Act was signed into law allowing the FBI to begin deployment process for our Rapid DNA system
Highlights for fiscal year 2017 included:
- Revenue of $486.4 million with gross margin of 41%
- GAAP operating margin of -14%; non-GAAP operating margin of 7%
- GAAP diluted EPS of ($5.96); non-GAAP diluted EPS of $2.22
- Operating cash flows of $76 million and free cash flow1 of $67 million
1 Free cash flow is a non-GAAP financial measure and is defined as operating cash flow minus capital expenditures. For fiscal 2017 free cash flow of $67 million equals operating cash of $76 million minus capital expenditures of $9 million. See section on “Use of non-GAAP financials measures” for further detail.
Fred Parks, president and CEO, commented, “In fiscal 2017, we realigned the company’s resources with our core businesses. Our cost structure is now much leaner. We are on track to realize $24 million in annual cost savings and we remain focused on further improving our cost structure. As a result, we expect improved profitability in fiscal 2018 despite lower revenues. These actions will also allow us to focus our BK Ultrasound business in its core markets of urology and surgery, and pursue continued growth opportunities in Security and Medical Imaging.
Parks continued, “The Board is focused on maximizing stockholder value. While we are confident in our growth plans, we believe that a sale of the company may create more certain value for our stockholders. Analogic remains committed to providing our customers with innovative technology and world-class products while we pursue this sale process.”
Strategic Review Process for Sale of Company Underway
The Company announced in June 2017 that it intended to explore strategic alternatives. The Board of Directors has engaged Citi as financial advisor and initiated a process for the sale of the entire Company to maximize stockholder value on an accelerated timeline. The sale process is underway and the Company will provide updates as appropriate. While there can be no assurance that the process will result in a transaction, the Board is committed to the process.
Fourth Quarter and Full Year Fiscal 2017 Results
Revenue for the fourth quarter of fiscal 2017 was $111.6 million compared with revenue of $138.1 million in the fourth quarter of fiscal 2016. Additional information on revenue for each of our business segments is provided below.
