CALIFORNIA: Analogic announced preliminary results for its first quarter and provided an update to its fiscal 2016 outlook. For the first quarter, the Company expects revenue to be approximately $115 million with GAAP operating margin of approximately 2% and non-GAAP operating margin of approximately 8%. The Company anticipates GAAP diluted EPS of approximately $0.11 and non-GAAP diluted EPS of $0.55. Included in GAAP operating margin and diluted EPS is a restructuring charge of approximately $3 million associated with the 2016 Restructuring Plan previously announced in the fourth quarter of fiscal 2015.
*** The Street sees Q1 revenue of $122.3 million and EPS of $0.77.
For fiscal 2016, the Company now expects revenues to grow in the low-single digits compared with its previous guidance of mid-single digit growth. The Company also confirmed its full year profitability outlook, with non-GAAP operating margins expected to improve by 1 point compared to fiscal 2015.
Jim Green, president and CEO, commented, “Although we normally do not provide quarterly guidance, we wanted to provide an update on our expected performance. In addition to the typical seasonality of our business, our first quarter also reflects delays in revenue recognition, the timing of new product introductions and foreign currency. Although we’re starting the year down slightly across the business, we expect a return to growth for the full year.”
Full Year Outlook
In Medical Imaging, the Company continues to expect full fiscal year 2016 revenue to be approximately flat year-over-year, in-line with its previously stated outlook.
In its Ultrasound segment, the Company expects solid double-digit, year-over-year growth in ultrasound system sales, as the investment in its worldwide direct sales force, new products, and technology partnerships is yielding benefits and is expected to drive accelerated revenue growth through the year. However, the Company now expects that growth in ultrasound system sales will be partially offset by a faster than anticipated decline in legacy OEM probe sales. As a result, the Company now expects to achieve mid-single digit, year-over-year revenue growth in its overall Ultrasound segment.
In Security and Detection, the company expects that fiscal 2016 sales of RapidDNA systems will be affected by the timing of market adoption as well as customer payment delays. The Company continues to believe that the long-term outlook in the DNA analysis market remains promising. The Company now expects year-over-year revenue in its overall Security and Detection segment to be approximately flat to slightly down compared to a strong fiscal 2015.
Green added, “While we expect first quarter revenues to be down slightly year-over-year, we believe that we will achieve low-single digit revenue growth for the full fiscal year. We continue to expect solid performance in our core businesses, with likely payment delays in RapidDNA and a faster than expected decline in legacy OEM probes impacting our overall revenue for the year. We continue to maintain our full year profitability outlook through our ongoing focus on cost.”
