Delays in elective surgeries due to COVID-19 hurting Hologic's revenues
Photo | Grant Welker
Hologic's Marlborough headquarters
Hologic has suffered what it calls a significant negative impact from the coronavirus pandemic, forcing the Marlborough medical device company to withdraw its financial guidance for the year.
Preliminary second-quarter results show why. Hologic said it performed well through most of the quarter but that disruptions from the pandemic starting in late March, with elective procedures and appointments postponed, took a toll on the company. Second-quarter revenues were expected to be $756 million, a 7.6% drop from the first-quarter 2019 amount of $818 million.
Hologic said it would implement measures to reduce expenses but wouldn't detail those steps or say how much they may save. Breast health, surgical and diagnostic product sales were especially weak.
Hologic said in January it expected second-quarter revenues of $770 million to $780 million. It forecasted 2020 revenues of $3.238 billion to $3.268 billion, for a year-over-year increase of 4% to 5%, not counting the sale of its Cynosure unit late last year.
“We performed very well through most of the quarter, led by our U.S. surgical and diagnostics businesses, and our European franchises," Stephen MacMillan, Hologic's chairman, president and CEO, said in a statement.
"However, disruptions caused by COVID-19 had a significant negative impact on sales in late March, as elective procedures and appointments were deferred, and our customers focused on responding to the pandemic. It has become clear that a lynchpin of that response is increasing diagnostic testing for the virus, and we are proud to be playing a leading role in this effort," he said.
Full second-quarter results are expected to be reported April 29.
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