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Q2 2013 Earnings Call
March 11, 2013 5:00 pm ET
Mark Namaroff - Director of Investor Relations & Corporate Marketing
James W. Green - Chief Executive Officer, President and Director
Michael L. Levitz - Chief Financial Officer, Senior Vice President and Treasurer
Lawrence Solow - CJS Securities, Inc.
Jiwon Lee - Sidoti & Company, LLC
James Terwilliger - The Benchmark Company, LLC, Research Division
Gregory M. Macosko - Lord, Abbett & Co. LLC
Previous Statements by ALOG
» Analogic Corp. F4Q09 Earnings Conference Call
» Analogic Corp. F2Q09 (Qtr End 1/31/09) Earnings Call Transcript
» Analogic Corporation F1Q09 (Qtr End 10/31/08) Earnings Call Transcript
Now, I'd like to turn the call over to Mr. Mark Namaroff, Director of Investor Relations. Sir, please begin.
Thank you. Good afternoon, everyone. Welcome to Analogic's Second Quarter Conference Call for Fiscal 2013. I'm sure all of you have downloaded our press release issued earlier today describing our results for our second quarter. If not, you can do so via our website at investor.analogic.com. [Operator Instructions]
Before I turn the call over to Jim Green and Mike Levitz to review our second quarter results, I would like to remind everyone that today's call may include forward-looking statements, such as comments about our plans, expectations and projections. For more information on risks and other factors that could cause our actual results to differ significantly from our forward-looking statements, please refer to our most recent Form 10-K and 10-Q reports on file with the Securities and Exchange Commission.
Also on today's call, we'll be discussing certain non-GAAP financial measures not prepared in accordance with generally accepted accounting principles. These non-GAAP financial measures are meant to supplement and should be viewed in conjunction with our GAAP financial measures. An explanation and a reconciliation of our non-GAAP financials are provided at the end of the presentation and in our second quarter press release.
And now, I'd like to turn the call over to Jim Green, our President and CEO.
James W. Green
Thanks, Mark. Good afternoon, everybody. Let's move to Slide 4 of the presentation please. I'll start by saying that Q2 keeps us solidly on track to deliver another year of healthy performance, this quarter delivering strong growth and double-digit operating margin across all our segments.
By looking to the quarter, our revenues came in at $139 million. That's up 10% from Q2 last year. Our gross margin improved to 40%. That's up 3 points from last year. Our operating margin measured 10% on a GAAP basis. That's up 4 percentage points from the same quarter last year. And our non-GAAP operating margin came in at 14%. That's up 2 percentage points. Our GAAP earnings per share came in at $0.78 and our non-GAAP EPS measured $1.05.
Let's move to Slide 5 and take a quick look at the business highlights. And starting with Ultrasound, we continue to expand, and you can see that we're strategically realigning along our direct business in Ultrasound. As such, I'm happy to report that at the beginning of this month, we completed the acquisition of Ultrasonix, which is key to our growth strategy going forward.
Now at quarter, prior to the closing of the Ultrasonix acquisition, our overall Ultrasound was down 2% from last year, so I want to take a minute and explain some of these moving parts. Starting with North America the investment to expand our direct sales force is really starting to pay off, and we're seeing an acceleration of the business there, and this last quarter we measured 7% growth. And looking to Europe, Europe was actually a very strong quarter for us, and if not for the distributor transition, that you'll hear a little more about, where we reduced sales by $2 million, we would have shown double-digit growth in Europe.
Also, as we continue to focus on the direct business, we're being more selective about the kinds of products and offerings in our OEM probe business. As such, we exited what I would call a non-strategic low-margin product line, which reduced our probe sales by approximately $2 million in the quarter.
Moving on to Medical Imaging. We had 7% growth over last year. Our CT business grew well above market, mainly driven by incremental new product sales of new products which we've recently introduced. MRI continued to show strong growth with both our existing customers and with more OEMs moving to our technology. Mammography revenues were down from last year's strong Q2. Although, our yields of strength and continue to support strong margins.
And looking to Security, revenues were up 73% from last year. And the new developing high-speed threat detection segment is expanding our market and our market share and market size overseas. I'm excited to say that for the first time, we reached -- actually we're the first to receive Europe's highest level of detection for liquids and laptops in carry-on luggage. And we're starting to see excitement building for the application of advanced CT to be the technology of choice to improve both detection and throughput at the checkpoints.