ANALOGIC CORP | Understand Stock

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2018 10-Q, filed Jun 6, 2018. Its latest SEC filing is a SC 13G/A from Feb 13, 2019.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Sells medical imaging systems and subsystems to medical equipment makers, ultrasound systems to clinical practitioners, and baggage screening and rapid DNA systems to airport, law enforcement, and government customers.

How Did They Make Money?

Customers generally pay for products when they ship. Maintenance and service contracts are paid over the contract term, while contractual engineering work is billed as progress is made or at milestones.

FY2017 revenue by reportable segment revenue

Segment	Share	Revenue
Medical Imaging	56% FY2014: 57%
Ultrasound	30% FY2014: 29%
Security and Detection	13% FY2014: 13%

Who Were Their Customers?

Medical equipment makers buy imaging systems and components directly. Clinical practitioners buy ultrasound systems through direct sales teams and distributors; airport security customers and governments receive screening and DNA systems through multinational partners, while checkpoint systems are sold directly.

Customers above 10% of revenue, FY2017

of revenue from two customers (14%, 12%)

FY2016: 36% from three customers

Did Revenues Turn Into Profits?

Not on paper. It lost $74.2M in FY2017, but brought in more cash than it spent: $66M of free cash flow.

Operating income, FY2017

−14% of revenue

▼ Turned to a loss vs FY2016 ($25.2M, 5%)

Net income, FY2017

−15% of revenue

▼ Turned to a loss vs FY2016 ($12.1M, 2%)

Free cash flow, FY2017

14% of revenue

▲ +232% vs FY2016 ($19.9M, 4%)

How Were They Changing?

Since the FY2017 annual report

Latest quarter: Q3 FY2018, the three months to Apr 30, 2018

Revenue: ▼ −2%; vs $122.2M in Q3 FY2017
Net income: ▲ Turned profitable; vs −$59.7M in Q3 FY2017

Medical Imaging share of revenue vs 56.9% in Q3 FY2017

Jun 22, 2018 Altaris completed its acquisition of Analogic Analogic became privately held, and its stock was set to be delisted from Nasdaq.

Shrank. Revenue fell 10% in 2 years, from $540.3M in FY2015 to $486.4M in FY2017, about 5% a year.

Ultrasound portfolio focus The older report described ultrasound products for urology, surgery, point-of-care and general imaging. The latest report says the company narrowed its focus to urology, surgery and anesthesia, ending new sales in some product lines and shifting one veterinary line to service only.

Security and DNA offerings The older report described aviation baggage screening as its security business. The latest report also includes rapid DNA analysis systems for law enforcement and government agencies.

Revenue over time

Medical Imaging Ultrasound Security and Detection

$1B$500M$0

FY2013 FY2014 FY2015 FY2016 FY2017

Who Did They Compete With?

Competes with General Electric, Koninklijke Philips Electronics, Hitachi Medical, Fujifilm, Mindray Medical International, L-3, Smiths Detection, Morpho Detection, and Rapiscan