Hologic, Inc. has recently released its 10-K report, providing a detailed insight into the company's financial performance and operations. Hologic, Inc. is a developer, manufacturer, and supplier of diagnostics products, medical imaging systems, and surgical products, with a focus on women's health and well-being through early detection and treatment. The company operates through four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health.
In the fiscal year ended September 28, 2024, Hologic reported a slight decrease in product revenues of 0.8% compared to the previous fiscal year, amounting to $3,255.1 million. This decrease was primarily attributed to lower COVID-19 assay sales and a decrease in Skeletal revenue. The Diagnostics segment experienced a 6.0% decrease in product revenues, driven by lower sales of SARS-CoV-2 assays due to lower demand and greater use of rapid tests. However, the Breast Health segment saw a 9.1% increase in product revenues, primarily due to higher volumes of digital mammography systems and related workstation and workflow products. The GYN Surgical segment also experienced a 5.8% increase in product revenues, driven by higher sales volumes of MyoSure devices and Fluent fluid management products. In contrast, Skeletal Health product revenues decreased by 38.0% due to a temporary stop-ship of Horizon DXA systems.
Service and other revenues increased by 3.3% in fiscal 2024 compared to the previous fiscal year, reaching $775.2 million. This increase was primarily driven by higher Breast Health service contract revenue from an expanded installed base and higher lab testing volumes from the Biotheranostics business.
The cost of product revenues as a percentage of product revenues increased to 37.1% in fiscal 2024 compared to 36.1% in the previous year. This increase was primarily due to lower sales of SARS-CoV-2 assays, which have higher gross margins compared to other Diagnostic products.
In terms of product revenues by geography, the percentage of product revenue derived from the U.S. decreased, primarily due to lower sales from SARS-CoV-2 assays and Horizon DXA systems. However, there were increases in Europe, Asia-Pacific, and the Rest of World, driven by various product sales in those regions.
The 10-K report also highlighted the company's acquisitions and dispositions, including the acquisition of Endomagnetics Ltd for $313.9 million and the sale of the SSI ultrasound imaging business for $1.9 million in cash.
Today the company's shares have moved 0.6% to a price of $79.5. For the full picture, make sure to review Hologic's 10-K report.
