PEABODY, Mass., March 10, 2015 (GLOBE NEWSWIRE) -- Analogic Corporation (Nasdaq:ALOG), enabling the world’s medical imaging and aviation security technology, today announced results for its second quarter ended January 31, 2015.
Highlights during the second quarter (comparisons are against Q2 of fiscal 2014) included:
- Revenue of $134 million, down 5%
- Gross margin of 43%
- GAAP operating margin of 9%; Non-GAAP operating margin of 13%
- GAAP diluted EPS of $0.78; Non-GAAP diluted EPS of $1.08
Revenue for the second quarter of fiscal 2015 was $133.9 million, a decrease of 5% compared with revenue of $141.4 million in the second quarter of fiscal 2014. GAAP net income for the second quarter of fiscal 2015 was $9.8 million, or $0.78 per diluted share, compared with net income of $19.3 million, or $1.53 per diluted share, in the second quarter of fiscal 2014. Included in our GAAP net income for the second quarter of fiscal 2014 were non-recurring tax benefits of $8.8 million, or $0.69 per diluted share, primarily associated with our Canadian operations.
Non-GAAP net income for the second quarter was $13.6 million, or $1.08 per diluted share, compared with $14.8 million, or $1.17 per diluted share, in the prior year’s second quarter. Our non-GAAP results do not include the tax benefit noted above. A reconciliation of GAAP to non-GAAP results is included as an attachment to this press release.
For the first six months of fiscal 2015, revenue totaled $252.3 million, consistent with the same period in the prior year. Year-to-date GAAP net income was $13.5 million, or $1.07 per diluted share, compared with $15.5 million, or $1.23 per diluted share, from the same period last year. Included in our GAAP net income last fiscal year were the nonrecurring tax benefits noted above of $8.8 million, or $0.69 per diluted share. Year-to-date non-GAAP net income was $21.5 million, or $1.70 per diluted share, compared with $15.6 million, or $1.23 per diluted share, in the same period last year. Our non-GAAP results do not include the tax benefit noted above.
Jim Green, president and CEO, commented, “Our performance during the first half of the year was in-line with our expectations, with strong revenue growth expected in the second half of the fiscal year. Our Ultrasound business continued to see double-digit growth on a constant currency basis. We also continued to build our backlog in Security and Detection, putting us in a position for strong double-digit revenue growth in this segment this fiscal year.”
Green continued, “We are maintaining our fiscal 2015 outlook of revenue growing mid-single digits with a 1-2 point improvement in non-GAAP operating margin.”
Segment Revenues
Revenue from our Medical Imaging segment was $73.1 million for the second quarter of fiscal 2015, down 8% from revenue of $79.6 million in the same period of fiscal 2014. The decline in Medical Imaging revenues was primarily driven by the timing of shipments compared to the prior year. On a year-to-date basis, Medical Imaging revenue was $139.9 million, consistent with the prior year.
Our Ultrasound segment revenue was $42.5 million for the second quarter of fiscal 2015, 6% growth over the $40.1 million in the same period of fiscal 2014. On a constant currency basis, the growth in Ultrasound was 10% for the quarter. Ultrasound revenue growth was driven by direct sales in North America and in China, as well as higher sales of OEM ultrasound probes. Year-to-date, Ultrasound revenue was $80.3 million, up 7% from the prior year, or 10% in constant currency.
Security and Detection segment revenue was $18.3 million for the second quarter of fiscal 2015, down 16% from revenue of $21.7 million in the same period of fiscal 2014, due to timing of shipments as the majority of the growing backlog is scheduled to ship in the second half of this fiscal year. Year to date, Security and Detection revenue was $32.1 million, down 13% from the prior year.
Quarterly Cash Dividend
On March 5, 2015, Analogic’s Board of Directors declared a $0.10 cash dividend for each common share for its second fiscal quarter ended January 31, 2015. The cash dividend will be payable on April 3, 2015 to shareholders of record on March 20, 2015.
Use of Non-GAAP Financial Measures
This document includes non-GAAP financial measures that are not in accordance with, nor an alternative to, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles.
Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on our reported results and, therefore, should not be relied upon as the sole financial measures to evaluate our financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial results. An explanation and a reconciliation of our non-GAAP measures are provided at the end of this press release.
Forward-Looking Statements
Any statements about future expectations, plans, and prospects for the Company, including statements containing the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including risks relating to product development and commercialization, limited demand for the Company’s products, limited number of customers, risks associated with competition, uncertainties associated with regulatory agency approvals, competitive pricing pressures, downturns in the economy, the risk of potential intellectual property litigation, acquisition related risks, and other factors discussed in our most recent quarterly and annual reports filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this presentation represent the Company’s views as of the date of this document. While the Company anticipates that subsequent events and developments will cause the Company’s views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Company’s views as of any later date.
Conference Call
Analogic will conduct an investor conference call on Tuesday, March 10, 2015 at 5:00 p.m. (ET) to discuss results for the second quarter ended January 31, 2015. To participate in the conference call, dial 1-866-823-6992, or 1-334-323-7225 for international callers, approximately ten minutes before the conference is scheduled to begin. Inform the operator that you wish to join the Analogic conference call, passcode 42748. You will then be asked for your name, organization, and telephone number, and be connected to the conference. The earnings release and, just prior to the call, presentation materials related to the quarterly financial information will be posted on the Company’s investor relations website at http://investor.analogic.com.
The call will also be available via webcast in listen-only mode. To listen to the webcast, visit http://investor.analogic.com approximately five to ten minutes before the conference is scheduled to begin. A telephone digital replay will be available approximately two hours after the call is completed through midnight (ET), Friday, April 10, 2015. To access the digital replay, dial 1-877-919-4059, or 1-334-323-0140 for international callers. The passcode is 53618958.
The replay of the conference call webcast will be archived at http://investor.analogic.com approximately three hours after the call is completed and will be available through midnight (ET), Friday, April 10, 2015.
About Analogic
Analogic (Nasdaq:ALOG) provides leading-edge healthcare and security technology solutions to advance the practice of medicine and save lives. We are recognized around the world for advanced imaging and real-time guidance technologies used for disease diagnosis and treatment as well as for automated threat detection. Our market-leading ultrasound systems, led by our flagship BK Ultrasound brand, used in procedure-driven markets such as urology, surgery, and point-of-care, are sold to clinical practitioners around the world. Our advanced imaging technologies are also used in computed tomography (CT), magnetic resonance imaging (MRI), and digital mammography systems, as well as automated threat detection systems for aviation security. Analogic is headquartered just north of Boston, Massachusetts. For more information, visit www.analogic.com.
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