Hologic Announces First Quarter Fiscal 2008 Operati...( this segment prior to the completi...)

this segment prior to the completion of its merger with Cytyc on

October 22, 2007. The operating loss for this business segment in the

first quarter of fiscal 2008 was $82.0 million. The operating loss

included an $85.2 million charge for in-process research and

development and a $26.6 million charge to cost of revenues relating to

the write-up of inventory to fair market value in connection with the

Cytyc merger. Costs and expenses for this business segment in the first

quarter of fiscal 2008 included $1.0 million of stock-based

compensation.

-- GYN Surgical revenues, which includes the Company's NovaSure

endometrial ablation system and the Company's Adiana complete

transcervical sterilization system under development, totaled $49.9

million for the first fiscal quarter of 2008. The Company recognized no

revenues from this segment prior to the completion of its merger with

Cytyc on October 22, 2007. The operating loss for this business segment

in the first quarter of fiscal 2008 was $282.9 million. The operating

loss included a $284.8 million charge for in-process research and

development, a $12.4 million charge to cost of revenues relating to the

write-up of inventory to fair market value and an impairment charge of

$2.9 million for certain intangible assets related to the Cytyc merger.

Costs and expenses for this business segment in the first quarter of

fiscal 2008 included $.7 million of stock-based compensation.

-- Skeletal Health revenues decreased to $24.3 million for the first

quarter of fiscal 2008 from $25.6 million for the same period in fiscal

2007. This decrease was primarily due to a reduction in the number of

bone densitometry systems sold and a slight shift to lower end bone

densitometry systems with lower average sellin
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