Analogic Q3 Profit Rises, But Misses View - Update

(RTTNews) - Analogic Corp. (ALOG) Thursday reported an increase in profit for the third quarter, driven mainly by strong gross margins and lower operating costs, despite a drop in revenues. However, both earnings and revenues for the quarter fell short of Wall Street estimates.

Peabody, Massachusetts-based Analogic's third-quarter profit rose to $7.8 million or $0.62 per share from $5.2 million or $0.41 per share last year.

The electronics product maker's adjusted earnings for the quarter rose to $11.8 million or $0.94 per share from $9.6 million or $0.76 per share a year ago. On average, three analysts polled by Thomson Reuters expected earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the third quarter inched down 1 percent to $124.0 million from $125.8 million last year. Analysts had a consensus revenue estimate of of $126.55 million for the quarter.

Third-quarter gross margin, or percentage of sales left after deducting production costs, improved to 43 percent from 39 percent last year. Operating margin improved 3 percentage points to 8 percent.

Moving ahead, Chief Executive Jim Green said, "As a result of continued healthcare market challenges and delays in airport tenders, the exit from our legacy patient monitoring business and a reduction in funded engineering, we anticipate that fiscal 2014 net revenue will decline mid-single digits from fiscal 2013. We remain focused on profitability and expect to deliver double-digit non-GAAP operating margins this fiscal year."

Separately, Analogic said it was granted authorization for an additional stock buy back plan of up to $30 million, which will be funded using cash in hand.

ALOG closed Thursday's trading at $69.60, up $0.41 or 0.59%, on the Nasdaq.