Analogic [ALOG]
2Q16 2Q15
Sales $127.9M $133.9M
Net Inc. ($3.0M, 0.24) $9.8M, 0.78
Analogic swung to a loss due to a $13.3 million pre-tax accrual associated with an ongoing inquiry into the company’s Danish medical subsidiary and a $3.1 million pre-tax restructuring charge associated with a previously announced restructuring plan. Excluding these negative adjustments, net income would have been $14.9 million ($1.18 EPS). Sales fell 5% on lower legacy ultrasound probes and timing of security shipments. Revenue in the Security and Detection segment was down 39% to $11.1 million on the timing of high-speed system shipments due to international airport purchasing delays and payment delays from RapidDNA systems. Jim Green, Analogic’s CEO, also says that sales in the Security and Detection segment this fiscal year are challenged due to strong revenue last year and because the Transportation Security Administration’s replacement of medium-speed explosive detection systems is “challenged this year.” He says that regulatory approvals are delaying market adoption of RapidDNA in addition to customer payment delays. The company generated $3.5 million in free cash flow