Its second quarter revenue of $619.1 million missed its projected revenue by $20.43 million and sent the Bedford, Mass., company’s stock price down 3 percent in after hours trading.
The lower than expected revenue was due to four factors, said Robert A. Cascella, Hologic’s CEO, president and director, in the earnings call for investors.
- Restructuring of Hologix’s China ThinPrep sales organization to gain broader coverage of the market cost nearly $8 million in the quarter.
- A slowdown in U.S. ThinPrep sales as major labs experienced utilization issues and orders fell short by $4 million.
- A decline in sales of its 2D Selenia and 2D Dimensions mammography systems caused in part by competition with Hologic’s own newer tomosynthesis systems.
- A nearly global lack of capital spending dollars among potential Hologic customers, that together with the decline in 2D mammography sales accounted for another $6 million of the revenue shortfall.
The company did deliver slightly higher earnings per share than analysts had expected, and the Q2 financials press release and earnings call highly touted the future potential of its tomosynthesis systems for breast cancer detection.
The press release cited three major studies supporting the use of tomosynthesis systems and the health care research firm KLAS’s report on Hologic's tomosynthesis systems that recommended its adoption by diagnostic imaging providers.
Not mentioned was the breast density inform legislation moving forward in many states that could increase consumer demand for additional breast cancer screening options by women with dense breast tissue.