Analogic Corporation (Analogic), a US based medical devices company, has reported total net revenues of $102.7 million for the second quarter of fiscal year 2009, compared with the total net revenues of $99.4 million in the year-ago quarter. It reported a net income of $1.4 million, or $0.11 per diluted share, for the second quarter of fiscal year 2009, compared with the net income of $7.1 million, or $0.54 per diluted share, in the year-ago quarter.
Including restructuring charges of $3.5 million, loss from operations for the second quarter was $1.5 million against a loss of $1.6 million in the first quarter of fiscal 2009 and income of $7.8 million in the prior year’s second quarter. During the quarter, the company implemented plans to reduce its workforce by about 9% worldwide and expects to achieve cost avoidance of $9.8 million annually.
Second quarter net income includes $1.6 million of discrete tax benefits primarily related to an IRS refund.
On a non-GAAP basis, income from operations for the second quarter of fiscal 2009 was $3.8 million against $1.7 million in the first quarter and $9.3 million in the prior year. Non-GAAP net income for the second quarter was $5.2 million, or $0.40 per diluted share, against $2.6 million, or $0.19 per diluted share in the first quarter and $7.9 million, or $0.59 per diluted share, for the prior year’s second quarter.
President and chief executive officer Jim Green commented, “The global economy continues to be a challenge as hospitals reduce spending for large capital equipment, such as computed tomography (CT) medical imaging equipment, and industrial manufacturing firms reduce spending which in turn has an impact on our motion controls business. As I indicated previously, we are operating the business as though fiscal Q1 reset our revenue run rate. We have taken actions during the quarter to adjust the size of the business to maintain profitability and remain cash-flow positive at current revenue levels.”
Green added, “We are now seeing the benefit of the Copley acquisition and we are leveraging our power amplifier engineering expertise across the business. Demand for Magnetic Resonance (MR) amplifiers remains steady. Our Digital Radiography (DR) segment has demonstrated year-to-year growth as our major original equipment manufacturers (OEMs) continue to adopt our direct digital conversion detectors for mammography systems. Recent, positive developments buoy the outlook for our Security segment. Overall, we are confident that Analogic remains well positioned for the current economy and beyond.”
Segment Revenues
Medical Imaging revenues were $61.8 million for the second quarter of fiscal 2009, increased by $2.5 million or 4% from the first quarter and $8.2 million or 15% over the prior year’s second quarter, due primarily to revenue from Copley MR power systems. CT subsystem revenues were down during the second quarter due to continuing weakness in the healthcare capital equipment market, particularly in the U.S. Revenues for MR power systems were up over prior year due to the inclusion of second-quarter revenues from Copley, which supplies advanced gradient amplifiers to medical OEMs. During the quarter, new contracts were signed with OEM customers in CT and MR.
Digital Radiography revenues were $6.8 million for the second quarter of fiscal 2009, decreased by $0.7 million or 9% from the first quarter and up $1.0 million or 17% over the prior year, driven by increasing sales of tomosynthesis-ready amorphous Selenium direct digital mammography detectors. We continue to expect revenue growth in DR as our customers introduce their systems outside the U.S., and when they receive regulatory clearance to sell in the U.S.
B-K Medical revenues were $20.8 million for the second quarter of fiscal 2009, increased $2.0 million or 10% from the first quarter and down $3.9 million or down 16% from the prior year. Revenues were primarily impacted by currency, and to a lesser extent by the anticipation of new product introductions against the prior year. During the quarter, the new UltraView scanner began shipping, the first HistoScanTM units were sold in Europe and we launched a new consumable sterile biopsy guide. In addition, the new portable FlexFocusTM ultrasound scanner was introduced and is receiving positive feedback from prospective customers. We expect to start production of the FlexFocus™ in the third quarter.
Security Technology revenues were $11.2 million for the second quarter of fiscal 2009, decreased $1.6 million or 13% from the first quarter and also down 13% from a year earlier due to a decrease in sales of spare parts and accessories. During the quarter, the eXaminerTM SX Explosives Detection System (EDS) received TSA certification, enabling sales into small and midsize US. airports as well as opening the door for overseas markets. In addition, the TSA announced its intention to enter into sole source procurement awards with our distribution partner L-3 Communications for $344 million in baggage scanners incorporating Analogic’s EDS technology. The new stimulus package also has the potential to generate additional demand.