New coronavirus tests helped Hologic hold revenue steady during recession

Photo | Grant Welker Hologic's Marlborough headquarters

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Income from diagnostics products, including coronavirus tests, was nearly enough to keep Marlborough medical device company Hologic from sliding into a revenue drop in the quarter ending June 27.

Hologic reported $823 million in quarterly revenue at the close of trading Tuesday, a decline from last year of 3.5% but perhaps not as significant as the company feared when it withdrew its fiscal guidance for the year in April, saying it was being majorly affected by the early stages of the coronavirus pandemic. At the time, Hologic said it would take unspecified measures to reduce expenses.

In what is Hologic's third quarter, the company reported a rise in net income thanks in part to reduced expenses, including marketing, research and development. Net income was $136.4 million, up from $93.9 a year prior. That's $0.53 per diluted share.

Revenue in Hologic's diagnostics unit, which includes coronavirus tests, rose by $227 million, or 74%. That far exceeded what the company said its demand was, and nearly enough to offset major drops in revenue elsewhere, including $101 million, or 31%, in breast health, and $61 million, or 54%, in its gynecological surgical unit.

Sales were strongest in the United States, with revenue up 2.9%. Abroad, revenue fell by 22.8% in constant currency.

Hologic is forecasting a rebound in the next quarter, with revenue between $925 million and $1.025 billion.