Analogic Corporation Announces Revenues and Earnings for Its Third Quarter.Business Editors PEABODY, Mass.--(BUSINESS WIRE)--June 10, 2004 Analogic Corporation This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALOG ALOG Army Logistician (Magazine) ALOG Army Logistics ALOG Activity Log ALOG AWIS Logistics ), a leading designer and manufacturer of high precision medical diagnostic and security equipment, announced today revenues and earnings for its third quarter ended April 30, 2004. Revenues for the third quarter ended April 30, 2004, were $92,257,000, compared with the prior year's third quarter revenues of $100,068,000, a decrease of 8%. Net income for the third quarter was $1,771,000, or $.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $6,856,000, or $.51 per diluted share, for the prior year's third quarter, a decrease of 74%. Revenues for the nine months ended April 30, 2004, were $262,488,000, compared with the prior year's nine months' revenues of $389,497,000, a decrease of 33%. Net income for the nine-month period was $7,260,000 or $.54 per diluted share, compared with $47,820,000, or $3.58 per diluted share, for the same period a year ago, a decrease of 85%. John Wood, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "The decreases in revenue and income from last year were about as expected. Last year we reported record revenue and income for the third quarter and for nine months due to extraordinary shipments of EXplosive Assessment Computed Tomography Computed tomography (CT scan) X rays are aimed at slices of the body (by rotating equipment) and results are assembled with a computer to give a three-dimensional picture of a structure. (EXACT(TM)) systems. The EXACT is the heart of a certified Explosive Detection System Noun 1. explosive detection system - a rapid automatic system to detect plastic explosives in passengers' luggage using X-ray technology and computers; designed for use in airports EDS (EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. ) that screens checked luggage for aircraft. Most of those systems were shipped during the first two quarters last year, to help airports comply with the mandates of the Aviation and Transportation Security Act The Aviation and Transportation Security Act (ATSA, Pub.L. 107-71 November 19, 2001) was enacted by the 107th United States Congress in the immediate aftermath of the September 11, 2001 attacks. of 2001. During the third quarter a year ago over 50 EXACT systems and spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. were shipped, compared to 14 units and spares this quarter, resulting in a quarter-over-quarter revenue decrease of approximately $19,742,000." The decline in security revenues was partially offset by 16% growth in the sales of medical imaging systems, including cardiac information management, digital radiography digital radiography Imaging A format for producing x-rays in which film used to produce conventional x-ray images is replaced with more sensitive sensitive electronics; DXRs produce images with1⁄2 , and patient monitoring systems. About a third of this growth was due to recognition of revenue deferred from previous years. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased quarter-over-quarter due in large part to Anexa Corporation, a subsidiary established in November to market digital imaging solutions to select end-user markets; personnel-related expenses; and incremental costs Costs which are additional costs to the Service appropriations that would not have been incurred absent support of the contingency operation. See also financial management. incurred to comply with the Sarbannes-Oxley Act of 2002. The Company also continued to invest in research and development at a level well above the historical average. "Our medical systems business is beginning to improve," said Wood. "We believe it will continue to grow next calendar year with the introduction of several new complete medical CT and digital radiography systems. Our medical subsystems business, including data acquisition systems for CT and ultrasound transducers, remains strong." "Security revenues are expected to fluctuate but we believe there are opportunities for substantial growth in that sector," Wood noted. "During the quarter we received an order for 40 additional EXACT systems, the majority of which will be delivered during this calendar year. We are making excellent progress on a major field upgrade to the EXACT systems which, subject to certification and field testing, is targeted for availability next calendar year." The Company also takes pride in its innovative new COBRA checkpoint (programming) checkpoint - Saving the current state of a program and its data, including intermediate results, to disk or other non-volatile storage, so that if interrupted the program could be restarted at the point at which the last checkpoint occurred. security system. The COBRA uses advanced CT technology to provide three-dimensional images of the entire contents of a carry-on bag or parcel, and automatically alerts the operator as to potential threats. During the quarter a prototype of the system was exhibited at a Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security Department of Homeland Security executive department - a federal department in the executive branch of the government of the United States conference in Washington, D.C., and demonstrated to several congressional leaders. "We are waiting for the government to establish certification standards for carry-on luggage scanners, which we expect to be issued late this summer. If all goes well, we should be able to put the system into production next calendar year," said Wood. The Company is also developing an entirely new generation of EDS systems funded by a grant from the Transportation Security Administration. Wood noted, "We are confident that our aggressive development of a number of major new medical and security imaging systems will complement our strong medical subsystems business in the coming year and provide the basis for substantial long-term growth for the Company." Analogic Corporation is a leading designer and manufacturer of advanced health and security systems and subsystems sold primarily to Original Equipment Manufacturers (OEMs). The Company is recognized worldwide for advancing the state of the art in Computed Tomography (CT), Digital Radiography (DR), Ultrasound, Magnetic Resonance Imaging magnetic resonance imaging (MRI), noninvasive diagnostic technique that uses nuclear magnetic resonance to produce cross-sectional images of organs and other internal body structures. (MRI 1. (application) MRI - Magnetic Resonance Imaging. 2. MRI - Measurement Requirements and Interface. ), Patient Monitoring, Cardiovascular Information Management, and Embedded Inserted into. See embedded system. Multiprocessing multiprocessing Mode of computer operation in which two or more processors (see CPU) are connected and are active at the same time. In such a system, each processor is executing a different program or set of instructions, thus increasing computation speed over a . This press release contains the Company's or management's intentions, hopes, beliefs, expectations or predictions. These are considered "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Act of 1995. Forward-looking statements (statements which are not historical facts) in this presentation are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that all forward-looking statements, including statements about product development, market and industry trends, strategic initiatives, regulatory approvals, sales, profits, expenses, price trends, research and development expenses and trends, and capital expenditures involve risk and uncertainties and actual events and results may differ significantly from those in any forward-looking statements. Actual results may differ materially from those indicated by such statements as a result of various factors, including those discussed in the Company's periodic reports filed with the SEC.
Condensed Consolidated Statements of Operations
Three Months Nine Months
(Unaudited) (in Thousands, except Ended April 30 Ended April 30
per share data) 2004 2003 2004 2003
Net revenue:
Product $86,358 $93,401 $240,287 $366,609
Engineering 4,233 4,949 16,354 16,804
Other 1,666 1,718 5,847 6,084
Total net revenue 92,257 100,068 262,488 389,497
Cost of sales:
Product 52,146 56,441 143,096 212,125
Engineering 3,503 3,802 8,439 12,205
Other 1,156 1,094 3,505 3,460
Total cost of sales 56,805 61,337 155,040 227,790
Gross margin 35,452 38,731 107,448 161,707
Operating expenses:
Research and product development 14,084 14,591 43,869 40,539
Selling and marketing 9,740 8,965 27,778 25,355
General and administrative 10,408 8,076 28,962 24,504
Total operating expenses 34,232 31,632 100,609 90,398
Income from operations 1,220 7,099 6,839 71,309
Other (income) expense:
Interest income -743 -1,302 -2,829 -3,811
Interest expense 61 89 253 240
Equity in unconsolidated affiliates -847 455 -848 2,548
Other 322 -1,095 317 -2,739
Total other (income) expense -1,207 -1,853 -3,107 -3,762
Income before income taxes 2,427 8,952 9,946 75,071
Provision for income taxes 656 2,096 2,686 27,251
Net Income $1,771 $6,856 $7,260 $47,820
Earnings per common share:
Basic $0.13 $0.51 $0.54 $3.61
Diluted 0.13 0.51 0.54 3.58
Dividends declared per share $0.08 $0.08 $0.16 $0.16
Shares outstanding:
Basic 13,492 13,290 13,428 13,225
Diluted 13,508 13,390 13,506 13,351
Condensed Consolidated Balance Sheets
(In thousands)
April 30, July 31,
2004 2003
(Unaudited) (Audited)
Assets:
Cash, cash equivalents and marketable securities $174,004 $177,961
Accounts and notes receivable, net 51,763 53,875
Inventories 68,617 69,548
Other current assets 27,975 33,923
Total current assets $322,359 $335,307
Property, plant and equipment, net 91,314 83,926
Other assets 35,337 37,142
Total assets $449,010 $456,375
Liabilities and Stockholders' Equity:
Mortgage and other notes payable $950 $1,457
Accounts payable 18,858 21,162
Accrued liabilities 20,014 24,412
Advance payments and deferred revenue 31,323 35,882
Accrued income taxes 5,112 5,867
Total current liabilities $76,257 $88,780
Long-term debt 202 4,164
Deferred income taxes 4,808 5,175
Deferred revenue 1,331 1,743
Total long-term liabilities $6,341 $11,082
Stockholders' Equity 366,412 356,513
Total Liabilities and Stockholders' Equity $449,010 $456,375
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