Mammography/Breast Care product sales increased 74% in fiscal 2007 compared to fiscal 2006 primarily due to a $178.0 million increase in digital mammography system sales, an increase of $50.1 million in breast biopsy device sales from Suros and a $8.4 million increase in CAD product sales from R2.
Suros and R2 are entities we acquired in the fourth quarter of fiscal 2006.
Prior to our acquisition of R2 we had sold CAD products together with our digital mammography systems, primarily from R2 as a distributor.
The increase in CAD product sales represents the additional CAD sales made without our digital mammography systems.
These increases were partially offset by an $8.6 million decrease in MultiCare stereotactic table sales and an $8.3 million decrease in analog mammography systems sales.
The increase in our digital mammography product sales was primarily attributable to an increase in the number of Selenia systems and related components sold, primarily in the United States.
In fiscal 2007, we sold 1,189 digital mammography systems compared to 555 systems in fiscal 2006.
This revenue was partially offset by a decrease in average selling prices primarily attributable to increased competition, higher dealer sales, changes in product configuration and increased multi-system sales.
We attribute the increase in digital mammography system sales primarily to the growing acceptance of our Selenia mammography system and of digital mammography in general.
The decrease in MultiCare stereotactic tables was primarily attributable to a decrease in the number of systems sold worldwide in the current fiscal year compared to fiscal 2006 due in part to higher demand in 2006 related to increased sales activity following our acquisition of Fischer’s mammography intellectual property in September 2005 and, to a lesser extent, a decrease in average selling prices primarily in the United States.
The decrease in sales of our analog mammography systems was primarily attributable to a decrease in the number of systems sold worldwide and, to a lesser extent, a decrease in average selling prices.
We believe that this decrease in analog system sales was primarily due to the shift in product sales to digital systems.
We expect sales for analog systems to continue to decrease in fiscal 2008.
Osteoporosis assessment product sales decreased 25% in fiscal 2007 compared to fiscal 2006.
This decrease was primarily due to a $13.9 million decrease in product sales in the United States primarily due to a decrease in the number of bone densitometry systems sold and, to a lesser extent, a decrease in the average selling prices.
We believe this decrease in our domestic unit sales reflect a decline in market conditions due to a reduction in reimbursement for osteoporosis assessment exams.
Other product sales increased 105% in fiscal 2007 compared to fiscal 2006.
This increase was primarily due to the addition of $29.6 million of sales from AEG, acquired during the third quarter of fiscal 2006, and an $8.7 million increase in our mini C-arm system sales.
The increase in mini C-arm revenue is primarily the result of an increase in the number of systems sold in the United States and Europe.
In fiscal 2007, approximately 75% of product sales were generated in the United States, 15% in Europe, 5% in Asia, and 5% in other international markets.
In fiscal 2006, approximately 72% of product sales were generated in the United States, 17% in Europe, 7% in Asia, and 4% in other international markets.
We believe the higher growth in sales dollars to the United States market is primarily due to an increase in demand for our Selenia digital mammography system as adoption of digital mammography is occurring at an increased rate in the United States as compared to international markets.
Service and Other Revenue.
## Table 0 ##
Service and other revenue is primarily comprised of revenue generated from our field service organization to provide ongoing service, installation and repair of our products.
Service and other revenue increased 47% in fiscal 2007 compared to fiscal 2006.
This increase was primarily due to an increase in service contract revenues
integration of higher margin product sales from the recently acquired businesses of R2 and Suros.
In addition, higher Selenia sales combined with the increase in revenues for Multicare stereotactic tables allowed for the greater absorption of manufacturing costs.
This improvement in the gross margin was offset in part by an increase in service related costs related to an increase in the number of our service personnel in the current fiscal year.
Operating expenses for this business segment increased 98% in fiscal 2006 primarily due to increased selling expenses which is primarily due to the higher revenues an increase in research and development, primarily related to increased expenditures for our tomosynthesis project, the $19.3 million write-off of acquired in-process research and development related to our acquisitions, $1.6 million of intangible asset amortization related to our acquisitions, and $2.7 million of stock-based compensation.
These increased expenses were partially offset in part by a net gain of $5.1 million from our sale of Mammotest intellectual property to Siemens.
Osteoporosis Assessment.
## Table 1 ##
Osteoporosis assessment revenues increased in fiscal 2006 compared to fiscal 2005 primarily due to the $3.6 million increase in product sales discussed above and a $1.6 million increase in service revenues.
The increase in service revenues was primarily due to the increased number of systems in our installed base.
Operating income for osteoporosis assessment decreased primarily due to increased operating expenses and to a lesser extent a decrease in gross margins.
Our gross margin in this business segment was 43% in fiscal 2006 compared to 44% in fiscal 2005.
The decrease in osteoporosis assessment gross margins was primarily attributable to a combination of a decrease in average selling prices and higher service repair costs.
The increase in operating expenses of $3.2 million was primarily attributable to increased general and administrative expenses of $1.6 million related to increased compensation and legal fees discussed above as well as $1.0 million of stockbased compensation under SFAS 123 (R).
Other.
## Table 2 ##
Revenues for this business segment, which includes the mini C-arm business, domestic distribution of a third party extremity MRI system, the digital general radiography business, the conventional general radiography service business and the AEG photoconductor businesses’ increased in fiscal 2006 primarily due to the $22.1 million increase in product sales discussed above and a $1.2 million increase in service and other revenues.
The increase in product sales was primarily due to the incremental revenues as a result of the AEG acquisition as well as the initial sales of a new line of third party extremity MRI systems.
These increases were partially offset by decreases in product sales related to digital general radiography business and the conventional general radiography service business, both of which are being phased out.
The increase in service and other revenues is
PART III Item 10.
Directors, and Executive Officers and Corporate Governance.
Pursuant to Section 406 of the Sarbanes-Oxley Act of 2002, we have adopted a Code of Ethics for Senior Financial Officers that applies to our principal executive officer and principal financial officer, principal accounting officer and controller, and other persons performing similar functions.
Our Code of Ethics for Senior Financial Officers is publicly available on our website at www.
hologic.
com.
We intend to satisfy the disclosure requirement under Item 5.05 of Current Report on Form 8-K regarding an amendment to, or waiver from, a provision of this code by posting such information on our website, at the address specified above.
The additional information required by this item is incorporated by reference to our Definitive Proxy Statement for our annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of our fiscal year.
Item 11.
Executive Compensation.
The information required by this item is incorporated by reference to our Definitive Proxy Statement for our annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of our fiscal year.
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
We maintain a number of equity compensation plans for employees, officers, directors and others whose efforts contribute to our success.
The table below sets forth certain information as of the end of our fiscal year ended September 29, 2007 regarding the shares of our common stock available for grant or granted under stock option plans and equity incentives that (i) were approved by our stockholders, and (ii) were not approved by our stockholders.
The number of securities and the exercise price of the outstanding securities have been adjusted to reflect our two-for-one stock split effected on November 30, 2005.
Equity Compensation Plan Information
## Table 3 ##
(1) Includes the following plans: 1997 Employee Equity Incentive Plan and 2000 Acquisition Equity Incentive Plan.
A description of each of these plans is as follows: 1997 Employee Equity Incentive Plan.
The purposes of the 1997 Employee Equity Incentive Plan (the “1997 Plan”), adopted by the Board of Directors in May 1997, are to attract and retain key employees, consultants and advisors, to provide an incentive for them to assist us in achieving long-range performance goals, and to enable such person to participate in our long-term growth.
In general, under the 1997 Plan, all employees,
Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (all tabular amounts in thousands except per share data) The effective tax rate for fiscal 2010 was significantly impacted by the goodwill impairment charge recorded in the fourth quarter of fiscal 2010, substantially all of which was not deductible for tax purposes.
In addition, the Company recorded provision to return adjustments and additional reserve needs partially offset by the reversal of reserves no longer required.
The reserves no longer required principally related to the sale of the Company’s manufacturing operation in Shanghai, China in the second quarter of fiscal 2010, and the expiration of the statute of limitations in several jurisdictions.
The effective tax rate for fiscal 2009 was significantly impacted by the goodwill impairment charge recorded in the second quarter of fiscal 2009, substantially all of which was not deductible for tax purposes.
In addition, the tax provision for fiscal 2009 included a reversal for a charge recorded in fiscal 2008 for approximately $2.3 million related to a clarification in Massachusetts tax law on apportionment for affiliates of manufacturing companies.
The Company also recorded an additional $1.3 million in anticipation of losing its tax holiday status due to the closure of its manufacturing facility in Shanghai, China.
The effective tax rate for fiscal 2008 was significantly impacted by the acquired in-process research and development charge related to the merger with Cytyc and Third Wave acquisition, which was not tax deductible.
Under ASC 740, the Company can only recognize a deferred tax asset for the future benefit of its tax loss and credit carryforwards to the extent that it is “more likely than not” that these assets will be realized.
After considering all available positive and negative evidence, the Company has established a valuation allowance against a portion of its remaining deferred tax assets because it is more likely than not that a portion of its tax loss carryforward will not be realized.
In determining the realizability of these assets, the Company considered numerous factors, including historical profitability, estimated future taxable income and the industry in which it operates.
The valuation allowance decreased $2.9 million in fiscal 2010 from fiscal 2009 primarily due to the transfer of certain fully reserved tax attributes in conjunction with the sale of the Company’s manufacturing operations in Shanghai, China and the expiration of certain federal net operating losses.
During fiscal 2010, the Company recorded a $0.8 million increase to capital in excess of par and a $1.1 million decrease to goodwill related to the excess tax benefit of stock options exercised in fiscal 2010.
During fiscal 2009, the Company recorded a $1.6 million increase to capital in excess of par and a $1.1 million decrease to goodwill related to the excess tax benefit of stock options exercised in fiscal 2009.
As of September 25, 2010, the Company had gross federal, state and foreign net operating losses of $137.5 million, $4.9 million and $32.8 million respectively, and federal, state and foreign credit carryforwards of $5.9 million, $8.7 million and $0.3 million respectively, that it believes are more likely than not that they will be realized.
The $137.5 million federal net operating losses exclude $9.5 million of net operating losses, which the Company believes will expire unutilized.
The $4.9 million state net operating losses exclude $23.3 million of net operating losses, which the Company believes will expire unutilized.
The following table summarizes the expiration periods of the net operating losses and credit carryforwards
## Table 4 ##

<table><tr><td></td><td colspan="6"> Years Ended</td></tr><tr><td></td><td colspan="2">September 29, 2007</td><td colspan="2">September 30, 2006</td><td colspan="2"> Change</td></tr><tr><td></td><td> Amount</td><td>% of Total Revenue</td><td> Amount</td><td>% of Total Revenue</td><td> Amount</td><td> %</td></tr><tr><td><i>Service and Other Revenue</i></td><td>$109,514</td><td>15%</td><td>$74,569</td><td>16%</td><td>$34,945</td><td>47%</td></tr></table>
<table><tr><td></td><td colspan="6"> Years Ended</td></tr><tr><td></td><td colspan="2">September 30, 2006</td><td colspan="2">September 24, 2005</td><td colspan="2"> Change</td></tr><tr><td></td><td> Amount</td><td>% of Total Segment Revenue</td><td> Amount</td><td>% of Total Segment Revenue</td><td>Amount</td><td> %</td></tr><tr><td>Total Revenues</td><td>$80,162</td><td>100%</td><td>$74,957</td><td>100%</td><td>$5,205</td><td>7%</td></tr><tr><td>Operating Income</td><td>$9,760</td><td>12%</td><td>$11,175</td><td>15%</td><td>$-1,415</td><td>-13%</td></tr></table>
<table><tr><td></td><td colspan="6"> Years Ended</td></tr><tr><td></td><td colspan="2">September 30, 2006</td><td colspan="2">September 24, 2005</td><td colspan="2"> Change</td></tr><tr><td></td><td>Amount</td><td>% of Total Segment Revenue</td><td> Amount</td><td>% of Total Segment Revenue</td><td>Amount</td><td> %</td></tr><tr><td>Total Revenues</td><td>$46,723</td><td>100%</td><td>$23,414</td><td>100%</td><td>$23,309</td><td>100%</td></tr><tr><td>Operating Income (Loss)</td><td>-$3,648</td><td>-8%</td><td>$3,996</td><td>17%</td><td>-$7,644</td><td>-191%</td></tr></table>
<table><tr><td>Plan Category</td><td>Number of securities to be issued upon exercise of outstanding options, warrants and rights (a)</td><td>Weighted-average exercise price of outstanding options, warrants and rights (b)</td><td>Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)</td></tr><tr><td>Equity compensation plans approved by security holders</td><td>2,590,898</td><td>$22.08</td><td>942,512</td></tr><tr><td>Equity compensation plans not approved by security holders -1</td><td>352,796</td><td>$7.33</td><td>—</td></tr><tr><td>Total</td><td>2,943,694</td><td>$20.31</td><td>942,512</td></tr></table>
<table><tr><td rowspan="2"></td><td colspan="6"> Period of Expiration</td></tr><tr><td> 2010-2016</td><td> 2017-2021</td><td> 2022-2026</td><td> 2027-2031</td><td> No expiration</td><td> Total</td></tr><tr><td>Federal net operating losses</td><td>966</td><td>29,310</td><td>46,789</td><td>60,438</td><td>—</td><td>137,503</td></tr><tr><td>State net operating losses</td><td>279</td><td>9</td><td>1,146</td><td>3,445</td><td>—</td><td>4,879</td></tr><tr><td>Foreign net operating losses</td><td>—</td><td>271</td><td>17,779</td><td>—</td><td>14,794</td><td>32,844</td></tr><tr><td>Federal R&D credits</td><td>139</td><td>2,580</td><td>2,965</td><td>254</td><td>299</td><td>6,237</td></tr><tr><td>CA credits</td><td>—</td><td>—</td><td>—</td><td>—</td><td>1,959</td><td>1,959</td></tr><tr><td>CT credits</td><td>—</td><td>1,265</td><td>1,839</td><td>—</td><td>—</td><td>3,104</td></tr><tr><td>MA credits</td><td>—</td><td>600</td><td>1,238</td><td>—</td><td>506</td><td>2,344</td></tr><tr><td>IN credits</td><td>926</td><td>410</td><td>—</td><td>—</td><td>—</td><td>1,336</td></tr></table>

Question: What is the ratio of Operating Income of Amount in Table 1 to the Operating Income (Loss) of Amount in Table 2 in 2005?
Answer: 2.79655