Boston, MA 09/16/2014 (wallstreetpr) – Technology company, Analogic Corporation (NASDAQ:ALOG) President and Chief Executive Officer, Jim Green, expects its non-GAAP operating margin to improve 1-2 points in the fiscal year 2015. This is predicted to put the company back on course to long-term sustainable growth.
CEO Comments
The Analogic Corporation (NASDAQ:ALOG)’s CEO exuded confidence when he said that it would be in a position to return to growth trajectory in the fiscal year 2015 as its medical imaging unit stabilizes while acceleration is expected in direct markets in its ultrasound business, its statement said. It also expects to post a robust growth in the security business. As a result, Green predicts revenue to grow in mid-single-digits in the next fiscal year.
Commenting on the results, the CEO said that it could withstand the market challenges in its medical and security divisions and still post a significant operating cash flow apart from maintaining near record margins. He believes that this would position the company to growth path and significant profitability in the future.
As far as its medical imaging segment, Green said that its high-value-content CT platform was reaching production and that its Mammography and MRI businesses remained stable. Similarly, in Security business, it said that it was witnessing early adoption of its RapidDNA analysis systems. As a result, it could receive significant orders after the fourth quarter ended, and the backlog was more than $60 million.
4Q Results
Analogic Corporation (NASDAQ:ALOG) reported net income of $11.2 million or 89 cents a share for the fourth quarter, down 4.3% from $11.7 million or 93 cents a share in the year-ago quarter. On an adjusted basis, net income would have witnessed 11% drop to $17.2 million or $1.36 a share from $19.3 million or $1.53 a share in the same quarter last year.
The company’s top line slipped 15% to $142.0 million from $166.2 million in the previous year quarter. Its cost of sales also reduced 19.6% to $76.97 million from $99.12 million in the prior year quarter indicating a better gross margin.
