Analogic [ALOG]
4Q17 4Q16 FY ’17 FY ‘16
Sales $111.6M $138.1M $486.4M $508.8M
Net Inc. ($24.65M, 1.98) $8.8M, 0.70 ($74.2M, 5.96) $12.1M, 0.96
Analogic swung to a net loss on higher than expected inventory impairment charges related to its medical business and a related tax valuation allowance, and lower sales. Revenue was down across the company’s segments, with Security and Detection sales of $10.4 million, a 28% drop from $14.5 million a year ago. The company attributes the decline in security business to timing of medium and high-speed explosive detection system shipments, and revenue adjustment from prior periods related to an engineering project. Security sales for the year increased 16 percent to $65.3 million. Analogic projects that the Security and Detection segment will post double-digit sales growth in the new fiscal year with operating margins in the mid-teens on demand for medium and high-speed checked baggage inspection systems. The company’s review of its strategic alternatives is ongoing but Fred Parks, president and CEO, says on the fourth quarter call that it hired Citibank in July as part of the process and that the board favors a sale of the entire company. Analogic plans to launch a new high-speed EDS system later this year to capture market share with second tier and more value oriented airports.