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Reports Preliminary Fiscal First Quarter Revenues Below Expectations and EPS and Adjusted EPS In-Line as Hospital Spending Tightens

Interested parties are invited to listen to the live audio webcast of Hologic’s investor presentation over the Internet and it can be accessed on the investor section of the Company’s website at www.hologic.com/investor. An archive of the presentation will be available for replay following the conference.

At the investor conference, Hologic will report it expects first quarter fiscal 2009 revenues to be three percent below previously issued guidance. The Company now expects total revenues to be approximately $428 million to $429 million. This compares to prior Company guidance issued on November 11, 2008 of $441 million to $443 million. The three percent decline in anticipated revenues from its initial guidance is principally due to reductions in revenues in Hologic’s Breast Health segment. The Company attributes this decline primarily to cost pressures faced by hospitals, due to the worldwide economic instability which has resulted in longer sales processes and delays of capital equipment purchases.

“This year will be challenging for our entire industry, as many drivers of our business remain uncertain,” said Jack Cumming, Chairman and Chief Executive Officer. “The severe and rapid economic downturn, resulting in a decline in hospital spending, has impacted Hologic’s Breast Health capital equipment sales. While in early November we were cautiously optimistic, even in light of the faltering economy, we witnessed an unprecedented decline in demand for capital equipment at the end of the quarter, which impacted sales of our Selenia™ digital mammography systems among our hospital customers. Hospital systems across the country have responded to tightening access to capital by restricting capital expenditures, implementing tight spending controls and reducing personnel.”

Although first quarter revenues are expected to fall three percent below initial expectations, Hologic expects non-GAAP adjusted EPS for the first quarter of fiscal 2009 to meet or exceed initial expectations and be in a range of $0.30 to $0.31, as a result of a number of cost reduction initiatives the Company implemented in the first quarter. This compares to prior Company guidance for non-GAAP adjusted EPS issued on November 11, 2008 of $0.29 to $0.30. Non-GAAP adjusted EPS excludes approximately $50 million of amortization of intangibles which on an after-tax basis (at an effective tax rate of 34%) would reduce GAAP EPS by $0.13. The estimated GAAP EPS would then be in a range of $0.17 to $0.18. Please see below for a further discussion of our use of non-GAAP financial measures.

Hologic will continue to assess the need for additional cost control measures based on the changing dynamics of the global economic climate and its impact on its businesses. The Company plans to update its fiscal 2009 guidance on its first quarter conference call scheduled on February 2, 2009.

“Hologic’s balance sheet remains very strong,” said Rob Cascella, President and COO. “We continue to generate solid cash flows and remain focused on cost saving measures to protect our bottom line. While addressing the current economic environment is important, it is absolutely critical that we protect our future. As such, we are focusing our resources on areas that we expect to generate positive returns. We remain committed to our major research and development projects for 2009, as well as to our long-term goals.”

Source:  Hologic, Inc.