(RTTNews) - Monday, Hologic, Inc. (HOLX: News ), a premium diagnostics and surgical products company, reported a swing to profit in the fourth quarter, primarily on a decline in expenses. Adjusted earnings dropped from last year, but came in ahead of Street estimates by a penny. Revenues for the quarter also declined from last year, yet came in ahead of expectations.

Hologic reported a third quarter net income of $34.94 million or $0.13 per share, compared with a net loss of $144.37 million or $0.56 per share in the fourth quarter a year-ago.

Adjusted net income for the fourth quarter decreased 6.2% to $72.44 million or $0.28 per share from $77.2 million or $0.30 per share in the fourth quarter of fiscal 2008. On average, twenty analysts polled by Thomson Reuters estimated earnings of $0.27 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined 9% to $402.76 million from $442.51 million in the year-ago quarter. Eighteen Wall Street analysts had a consensus revenue estimate of of $398.27 million for the quarter.

Revenue decrease for the quarter was primarily attributed to a decline in sales of Selenia systems from last year, due to the current economic environment and reductions in hospital capital spending.
Skeletal Health product revenues declined $5.9 million, partially offset by growth in Diagnostics and GYN Surgical product sales of $14.7 million as compared to the year-ago period. This included an increase of $3.7 million from Third Wave, which the company acquired in July 2008 and a $8.7 million increase in service and other revenues related to increased installed base of Selenia full field digital mammography systems.

Cost of revenues for the quarter declined to $156.71 million from $176.57 million last year. The cost of revenues - amortization of intangible assets increased to $39.24 million from $25.66 million year-ago. Research and development expenses increased to $22.70 million from $20.94 million in the year-ago period, while selling and marketing expenses declined to $56.57 million from $67.79 million in the prior year period. General and administrative expenses declined to $38.17 million from $38.29 million.

Restructuring charge for the quarter was $797 thousand during the quarter. There was no acquired in-process research and development charge during the quarter, while there was a charge of $195.20 million in the year-ago quarter. Net interest and other expenses declined during the quarter to $15.62 million from $21.64 million year-ago.

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