Analogic [ALOG]
3Q17 3Q16
Sales $122.2M $128M
Net Inc. ($59.7M, 4.78) $5M, 0.40
Analogic swung to a big loss due to a hefty asset impairment charge, $73.1 million pre-tax, in its ultrasound business, and a $2.1 million charge related to restructuring actions. Sales fell 5% on mid-single digit declines in the Ultrasound and Medical Imaging segments, partially offset by a small gain in the Security and Detection segment. Sales in the Security and Detection business rose 2% to $17.5 million on continued demand for high-speed check baggage screening systems. So far this year sales at the segment are up 31% to $54.9 million and for the year revenue growth is pegged to be up 15% to 20% with operating margin in the low-teens. Security & Detection operating margin—non-GAAP—in the quarter was 17%, down 2% from a year ago on higher research and development spending on the ConneCT product. Fred Parks, Analogic’s president and CEO, said on the company’s earnings call that he expects its ConneCT checkpoint computed-tomography-based baggage scanner to complete the Transportation Security Administration’s certification process late this summer, adding that international demonstration “sites are being arranged.” Both L3 Technologies and Integrated Defense & Security Solutions have had their respective checkpoint CT systems certified by TSA and are preparing for live airport evaluations.