PEABODY, Mass., Dec. 08, 2015 (GLOBE NEWSWIRE) -- Analogic Corporation (Nasdaq:ALOG), enabling the world’s medical imaging and aviation security technology, today announced results for its first quarter ended October 31, 2015.
Highlights during the first quarter (comparisons are against Q1 of fiscal 2015) included:
- Revenue of $115 million, down 3% (down 2% on constant currency)
- Gross margin of 44%, flat (up 1pt. on constant currency)
- GAAP operating margin of 2%; GAAP diluted EPS of $0.11, includes $3.3 million, or $0.26 per diluted share of pre-tax restructuring charges associated with FY2016 Restructuring Plan announced in Q4 fiscal 2015
- Non-GAAP operating margin of 8%; Non-GAAP diluted EPS of $0.55
- Positive operating cash flows of $14 million, free cash flow of $11 million
- Launched and began shipments of premium bk5000 ultrasound system for surgery; introduced bk3500 ultrasound system for POC
Revenue for the first quarter of fiscal 2016 was $114.9 million, a decrease of 3%, compared with revenue of $118.3 million in the first quarter of fiscal 2015. GAAP net income for the first quarter of fiscal 2016 was $1.4 million, or $0.11 per diluted share, compared with net income of $3.7 million, or $0.29 per diluted share, in the first quarter of fiscal 2015. Included in GAAP net income and diluted EPS for the first quarter is a pre-tax restructuring charge of $3.3 million, or $0.26 per diluted share, associated with the 2016 Restructuring Plan previously announced in the fourth quarter of fiscal 2015.
Non-GAAP net income for the first quarter was $7.0 million, or $0.55 per diluted share, compared with $7.9 million, or $0.63 per diluted share, in the prior year’s first quarter. A reconciliation of GAAP to non-GAAP results is included as an attachment to this press release.
Jim Green, president and CEO, commented, “As we previously announced, our first quarter revenue was impacted by delays in revenue recognition, timing of new product introductions and foreign currency. In fiscal 2016 we expect a return to growth in the second half, yielding low-single-digit revenue growth for the year. With our focus on costs, we continue to expect an improvement in non-GAAP operating margin of approximately 1 pt.”
Segment Revenues
Medical Imaging segment revenue was $64.9 million for the first quarter of fiscal 2016, down 3% from revenue of $66.7 million in the same period of fiscal 2015, due primarily to timing of shipments of CT and MR products offset by growth in mammography detector sales.
Ultrasound segment revenue was $36.7 million for the first quarter of fiscal 2016, down 3% (flat in constant currency) from revenue of $37.8 million in the same period of fiscal 2015, impacted by timing of shipments and lower legacy OEM probes, offset by strong sales growth in emerging markets, in addition to growth from our technology partnership in ultrasound systems.
Security and Detection segment revenue was $13.3 million for the first quarter of fiscal 2016, down 3% from revenue of $13.8 million in the same period of fiscal 2015, on lower medium-speed system shipments and payment delays from RapidDNA systems.
Update to Fiscal 2016 Restructuring Plan
Analogic previously announced a restructuring of its business in the fourth quarter 2015 that includes the transition of certain manufacturing activities from our Peabody, Massachusetts location to our existing facility in Shanghai, China, a reduction in force in order to align our research and development investment with expected customer funding in our Security and Detection business, and a voluntary retirement program available to eligible employees in the affected areas of our Peabody, Massachusetts facility.
Due to a higher than expected participation in the voluntary retirement program, the Company now expects to incur a restructuring charge of approximately $10 million in fiscal 2016 (compared with $6 million estimated in the fourth quarter of 2015), of which $3.3 million was taken in the first quarter of FY16 with the balance taken throughout the remainder of the fiscal year. The Company now expects annual savings on a pre-tax basis of approximately $4 million in fiscal 2016 and $11 million in fiscal 2017.
Quarterly Cash Dividend
On December 3, 2015, Analogic’s Board of Directors declared a $0.10 cash dividend for each common share for its first fiscal quarter ended October 31, 2015. The cash dividend will be payable on January 4, 2016, to shareholders of record on December 18, 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, December 8, 2015 at 5:00 p.m. (ET) to discuss the first quarter and outlook for fiscal 2016. 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, 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 website at http://investor.analogic.com/.
The call will also be available via webcast in listen-only mode. To listen to the webcast, visit 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 Friday January 8, 2016. To access the digital replay, dial 1-877-919-4059 or 1-334-323-0140 for international callers. The passcode is 96138390.
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