Tomahawk, WI 11/13/2013 (BasicsMedia) –  For the medical imaging systems company Hologic, Inc. (NASDAQ:HOLX), 2013 has been a particularly odd business year so far. During the four quarters, the $5.55 billion capped company has very little to show. The company reported its last quarterly results for the fiscal 2013 on Nov. 11, issuing a largely disappointing outlook for the first quarter in 2014. Due to this, the stock suffered on the browser, losing more than 10% in share value. However, it is important noting that while 2013 has been a tough moment for this stock, it has resisted huge bulge so far in the year.

For the three months ending Sept 28, Hologic reported losing $4.11 per share, or $1.11 billion. This latest reported quarterly loss flies on top of last year’s loss which came in at $77.8 million $0.29 a share. The company’s writedown of $1.1 billion in its diagnostic business was one reason the Q4.13 data wasn’t pleasing. As such, on adjusted basis, the company realized net income of $0.39 on revenue of $622.1 million. The same quarter last year, the company realized $0.37 a share and revenue of $588.5 million.

Looking ahead, Hologic is now expecting narrowed earnings in the next quarter, however, visibly, this doesn’t auger well with investors. For the first quarter of 2014, Hologic expects to generate total revenue of between $$2.43 and $2.48 billion. In the new fiscal year, the medical imaging company is seeking net income of between $1.32 and $1.38 per share. The Q1.14 revenue outlook falls short of what the company realized in Q1.13 which came in at $2.49 billion.

For rebound, the company’s management has no time on their side as investors are thirsty for good figures. While it is understandable that the hole in the just reported quarter was due to one time impairment, maintaining growth and dividend for shareholders are pressing issues. It’s not clear whether the company may decide on asset sell to unlock its cash flow considering that it still holds quite a significant amount in debt at around $4 billion.  Would a merger or acquisition bolster Hologic? The management is mute on this, yet it could be an option. However, the stumbling block appears to the dent in its balance sheet in form of $4 billion outstanding loan.

The company’s prediction of a better 2015 appears to be linked to the expected increased spending in the acquisition of medical devices globally. Purchase of medical materials and devices had been slow since the previous year and things are only expected to ease up around 2015. However, the company looks disoriented on how to deal with the poor business environment that it’s predicting in 2014 without hurting investor confidence.

But is all lost for investors in Hologic? Nothing like it. Looking at the company’s hidden energy in terms of products and its pipeline, it’s not prudent to write it off just yet as an investment vehicle. Its profitable businesses ThinPrep and NovaSure are expected to swing back to action in the big way once the market eases up. This is why Hologic still makes a lot of investment sense for those looking for a long term position.

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