Cytyc (CYTC) 8-K Cytyc Reports Record Third Quarter

Exhibit 99.1

Contact:	Patrick J. Sullivan, Chairman, President & CEO
	Anne Rivers, Investor Relations
	Jeff Keene, Healthcare Media
	Cytyc Corporation: 978-266-3010
	www.cytyc.com
	Stephanie Carrington/Greg Tiberend
	The Ruth Group: 646-536-7017
	Shanti Skiffington/Wendy Williams
	Schwartz Communications: 781-684-0770

CYTYC REPORTS RECORD THIRD QUARTER

REVENUE OF $102.8 MILLION

Revenue Increases 36 Percent

EPS Increases 24 Percent to $0.21 per Diluted Share

Boxborough, Mass., October 27, 2004 — Cytyc Corporation (Nasdaq:CYTC) today announced results for the third quarter and nine months ended September 30, 2004.

Revenues for the quarter rose 36 percent to $102.8 million compared to $75.5 million for the third quarter of 2003. Diluted earnings per share increased 24 percent to $0.21 compared to $0.17 reported in the third quarter of 2003. Net income increased 33 percent to $24.8 million compared to $18.6 million in the third quarter of 2003.

For the nine months ended September 30, 2004, revenues grew 26 percent to $283.0 million compared to $224.8 million for the same period in 2003. Net income was $48.2 million, or $0.42 per diluted share, compared to net income of $56.7 million, or $0.50 per diluted share for the same period of 2003.

Excluding the nonrecurring charge of $19.1 million for acquired in-process research and development related to the acquisition of Novacept, net income for the nine months ended September 30, 2004, was $67.3 million, or $0.59 per diluted share.

“I am pleased with our strong performance in both the diagnostic and surgical divisions of the business,” said Patrick J. Sullivan, Cytyc’s chairman, president, and chief executive officer. “We are well on our way towards establishing the ThinPrep^® Imaging System as a lab standard for processing ThinPrep^® Pap Tests as exemplified by our new, long-term agreements signed this quarter with LabCorp and LabOne. International adoption of our technology continues to expand in Europe and Asia-Pacific. Sales of our NovaSure^® product continue to grow and this quarter approached $20 million as we continue to realize the synergies of our combined OBGYN sales force that is now more than 170 people strong.” Mr. Sullivan concluded, “We remain focused on executing our key growth initiatives, which will enable us to support our position as a premier provider of innovative and clinically effective women’s health products and services.”

Cytyc management will discuss third quarter results, business highlights and future expectations during a conference call on October 28 at 9:00 a.m. (Eastern). The call will be hosted by Patrick Sullivan, chairman, president, and chief executive officer; Leslie Teso-Lichtman, vice president and acting chief financial officer; Daniel Levangie, executive vice president and chief commercial officer; and John McDonough, senior vice president, development and operations. A webcast and replay of the call may be accessed at Cytyc’s website,http://ir.cytyc.com, where the event will be available for replay approximately two hours following the webcast until November 12, 2004. Those without web access may access the call by calling 973-582-2749 or 877-692-2086. A telephonic replay of the call will be available through November 12, 2004, by calling 877-519-4471 (Reservation number: 5250137). International participants may dial 973-341-3080; the reservation number is the same.

Cytyc Corporation is a leading medical device company that designs, develops, manufactures, and markets innovative and clinically effective products primarily focused on women’s health. Cytyc products cover a range of women’s health applications, including cervical cancer screening, breast cancer risk assessment, and treatment of excessive menstrual bleeding. The ThinPrep^® System is the most widely used method for cervical cancer screening in the United States. The ThinPrep System consists of the ThinPrep^® 2000 Processor, ThinPrep^® 3000 Processor, ThinPrep^® Imaging System, and related reagents, filters, and other supplies. The ThinPrep System also provides the platform from which the Company has launched its expansion into breast cancer risk assessment with the FirstCyte^® Breast Test. Cytyc Surgical Products, a wholly owned subsidiary of Cytyc Corporation, manufactures and markets the NovaSure^® Impedance Controlled Endometrial Ablation System, or the NovaSure^® System, an innovative endometrial ablation device to treat menorrhagia, or excessive menstrual bleeding.

Cytyc is traded on The Nasdaq Stock Market under the symbol CYTC. Cytyc, ThinPrep, FirstCyte, and NovaSure are registered trademarks of Cytyc Corporation.

Forward-looking statements in this press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements relating to the Company’s financial condition, operating results and future economic performance, and management’s expectations regarding future growth opportunities, product acceptance and business strategy, constitute forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from those statements. Risks and uncertainties include, among others, dependence on key personnel and proprietary technology, uncertainty of product development efforts, product acceptance, management of growth, risks associated with litigation and the effective integration of acquired businesses and technologies, competition and competitive pricing pressures, risks associated with the FDA regulatory approval processes and any healthcare reimbursement policies, and other

risks detailed in the Company’s filings with the Securities and Exchange Commission, included under the heading “Certain Factors Which May Affect Future Results” in its 2003 Annual Report on Form 10-K and its most recent Quarterly Report on Form 10-Q filed with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations or events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

Tables to Follow

Cytyc Corporation Reports

Cytyc Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	September 30, 2004			September 30, 2003
Net sales	$	102,787		$	75,457
Cost of sales		21,334			14,063
Gross profit		81,453			61,394
Operating expenses:
Research and development		5,424			4,212
Sales and marketing		26,349			20,201
General and administrative		8,402			6,805
Total operating expenses		40,175			31,218
Income from operations		41,278			30,176
Other (expense) income, net:
Interest income		492			477
Interest expense		(1,801	)		—
Other		(30	)		(200	)
Total other (expense) income, net		(1,339	)		277
Income before provision for income taxes		39,939			30,453
Provision for income taxes		15,177			11,855
Net income	$	24,762		$	18,598
Net income per common and potential common share:
Basic	$	0.22		$	0.17
Diluted	$	0.21		$	0.17
Weighted average common and potential common shares outstanding:
Basic		111,412			109,728
Diluted		115,791			111,613

Cytyc Corporation Reports

Cytyc Corporation

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Nine Months Ended September 30, 2004									Nine Months Ended September 30, 2003
	Pro Forma			Adjustment			As Reported			As Reported
Net sales	$	282,986		$	—		$	282,986		$	224,766
Cost of sales		58,172			—			58,172			41,639
Gross profit		224,814			—			224,814			183,127
Operating expenses:
Research and development		15,031			—			15,031			10,989
In-process research and development		—			19,100	(1)		19,100			—
Sales and marketing		73,913			—			73,913			60,201
General and administrative		24,667			—			24,667			19,711
Total operating expenses		113,611			19,100			132,711			90,901
Income from operations		111,203			(19,100	)		92,103			92,226
Other (expense) income, net:
Interest income		1,597			—			1,597			1,884
Interest expense		(3,590	)		—			(3,590	)		—
Other		(703	)		—			(703	)		(112	)
Total other (expense) income, net		(2,696	)		—			(2,696	)		1,772
Income before provision for income taxes		108,507			(19,100	)		89,407			93,998
Provision for income taxes		41,233			—			41,233			37,281
Net income	$	67,274		$	(19,100	)	$	48,174		$	56,717
Net income per common and potential common share:
Basic	$	0.61					$	0.44		$	0.51
Diluted	$	0.59					$	0.42		$	0.50
Weighted average common and potential common shares outstanding:
Basic		110,707						110,707			111,410
Diluted		114,553						114,553			113,196

(1) One-time charge to write off in-process research and development costs related to acquisition of Novacept in Q1 2004

Cytyc Corporation Reports

Cytyc Corporation

Consolidated Balance Sheets

(in thousands)

	September 30, 2004		December 31, 2003
	(unaudited)
Assets:
Current assets
Cash and investment securities	$	178,878	$	177,897
Accounts receivable, net		61,466		42,070
Inventories		25,017		17,801
Other current assets		10,260		4,859
Total current assets		275,621		242,627
Property and equipment, net		40,405		32,561
Goodwill and other intangible assets, net		391,670		107,246
Equipment under customer usage agreements, net		26,630		8,072
Other assets, net		7,757		394
Total Assets	$	742,083	$	390,900
Liabilities and Stockholders’ Equity:
Current liabilities	$	57,617	$	32,920
Long-term debt and other non-current liabilities		254,475		4,349
Stockholders’ equity		429,991		353,631
Total Liabilities and Stockholders’ Equity	$	742,083	$	390,900