Analogic Corporation (NASDAQ:ALOG) Imaging Business Strong

Knowing security business of Analogic Corporation (NASDAQ:ALOG) was going to be weak in the latest quarter, Needham & Company noted the strength of their Medical Imaging business, which also looks as if it's accelerating.

Needham said, "Although ALOG slightly missed our total revenue number, the Medical Imaging business was strong and appears to be gaining momentum; the Ultrasound shortfall was currency related. That leaves the Security business, which we already knew would be weak as the TSA slows orders while it revamps its procurement procedures. The total also excluded $2.9 M in hotel revenue that was in our numbers because it was sold at the end of the quarter. After peeling back the onion, the revenue shortfall actually looks OK."

Needham maintains a "Buy" rating on Analogic Corporation, which closed Friday at $48.00, up $0.29, or 0.61 percent. They have a price target of $52 on them.