SOURCE: Bio-Rad Laboratories

May 03, 2007 16:18 ET

Bio-Rad Reports First-Quarter 2007 Financial Results

HERCULES, CA -- (MARKET WIRE) -- May 3, 2007 -- Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb), a multinational manufacturer and distributor of life science research and clinical diagnostics products, announced financial results today for the first quarter year ended March 31, 2007.

The Company posted revenues of $322.5 million, up 4.6% compared to $308.3 million reported for the first quarter of 2006. On a currency-neutral basis, revenues increased 0.4% compared to the same period last year. Net income for the first quarter was $27.0 million compared to $31.2 million reported for the same quarter in 2006. First-quarter net income was $1.02 per share, or $0.99 per share on a fully diluted basis, compared to $1.19 and $1.16, respectively, during the first quarter last year. First-quarter gross margin from operations was 55.6% compared to 56.9% in the same period last year.

"While sales were solid in our Clinical Diagnostics segment, our Life Science segment continues to face some slowness in the US and Asian academic segments," said Norman Schwartz, Bio-Rad President and Chief Executive Officer. "We are encouraged, however, by growth across several product lines and the introduction of new products like the Mini-PROTEAN® Tetra cell and the Profinia™ protein purification system."

Life Science

Life Science segment net sales for the quarter were $141.6 million, down 2.2% compared to the same period last year. On a currency-neutral basis, segment sales decreased by 5.7%. Overall performance in this segment continued to be impacted by the drop in BSE (bovine spongiform encephalopathy) testing revenues as both the number of animals tested and the average selling price continues to decline. In addition, reduced government sponsored research funding has impacted sales across the segment's traditional product lines. This weakness was somewhat offset, however, by the introduction of the ProteOn™ XPR36 protein interaction array system and growth of the Bio-Plex® suspension array system instrument and reagents. Sales of the Bio-Plex system were driven in part by 57 new assays that were introduced in 2006. During the quarter, the segment introduced a number of new products including the Mini-PROTEAN Tetra cell, the Company's fourth generation electrophoresis system; as well as the Profinia protein purification system.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $177.6 million for the quarter, up 10.8% compared to the first quarter last year, or 5.9% excluding currency effects. These results were largely due to continued growth across all product lines, most notably blood virus and quality control products. Strong blood virus sales in the US were in part the result of customers converting to the HIV-1/HIV-2 PLUS O EIA test. In addition, the segment had record installations of QCNet™ software, which allows customers to connect to Bio-Rad via the Internet for their QC data processing needs.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) May 3, 2007. Interested parties can access the call by dialing 800-295-4740 (in the US), or 617-614-3925 (international), access number 87033646. The live webcast can be accessed at http://www.bio-rad.com. A replay of the call will be available at 888-286-8010 (in the US), or 617-801-6888 (international), access number 53777366, for seven days following the call and the webcast can be accessed at http://www.bio-rad.com for 30 days.

About Bio-Rad

Bio-Rad Laboratories, Inc. (AMEX: BIO) (AMEX: BIOb) has remained at the center of scientific discovery for more than 50 years manufacturing and distributing a broad range of products for the life science research and clinical diagnostics markets. The Company is renowned worldwide among hospitals, universities, major research institutions as well as biotechnology and pharmaceutical companies for its commitment to quality and customer service. Founded in 1952, Bio-Rad is headquartered in Hercules, California, and serves more than 85,000 research and industry customers worldwide through its global network of operations. The Company employs over 5,000 people globally and had revenues of nearly $1.3 billion in 2006. For more information, visit www.bio-rad.com.

Various statements made within this press release may constitute "forward-looking statements" for the purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The forward-looking statements contained herein involve risks and uncertainties that could cause results to differ materially from the Company's expectation.

                        Bio-Rad Laboratories, Inc.
                Condensed Consolidated Statements of Income

                  (in thousands, except per share data)
                                (UNAUDITED)


                                                     Three Months Ended
                                                          March 31,
                                                  ------------------------
                                                      2007         2006
                                                  -----------  -----------
Net sales                                         $   322,508  $   308,338
Cost of goods sold                                    143,127      132,810
                                                  -----------  -----------
Gross profit                                          179,381      175,528

Selling, general and administrative expense           107,750      100,070
Product research and development expense               32,781       28,091
Interest expense                                        7,869        8,019
Foreign exchange (gains) losses, net                     (272)          11
Other (income) expense, net                            (6,186)      (4,542)
                                                  -----------  -----------
Income from continuing operations before taxes         37,439       43,879
Provision for income taxes                             10,442       12,681
                                                  -----------  -----------
Net income                                        $    26,997  $    31,198
                                                  ===========  ===========

Basic earnings per share:
   Net income                                     $      1.02  $      1.19
                                                  ===========  ===========

   Weighted average common shares                      26,580       26,277
                                                  ===========  ===========

Diluted earnings per share:
   Net income                                     $      0.99  $      1.16
                                                  ===========  ===========

   Weighted average common shares                      27,156       26,829
                                                  ===========  ===========





                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (In thousands)
                                (UNAUDITED)





                                                   March 31,   December 31,
                                                      2007         2006
                                                  ------------ ------------
Current Assets:
     Cash and cash equivalents                    $    230,314 $    223,607
     Short-term investments                            241,418      264,473
     Accounts receivable, net                          290,116      292,970
     Inventories, net                                  259,965      253,045
     Other current assets                              107,879       95,682
                                                  ------------ ------------
          Total current assets                       1,129,692    1,129,777

Net property, plant and equipment                      188,763      189,627
Goodwill                                               119,492      119,492
Purchased intangibles, net                              44,220       44,605
Other assets                                           124,876      112,667
                                                  ------------ ------------
          Total assets                            $  1,607,043 $  1,596,168
                                                  ============ ============



Current liabilities:
     Notes payable and current maturities of
      long-term debt                              $      4,609 $      3,042
     Accounts payable                                   61,946       83,411
     Accrued payroll and employee benefits              70,590       92,101
     Sales, income and other taxes payable              22,240       19,949
     Other current liabilities                         112,706      121,030
                                                  ------------ ------------
          Total current liabilities                    272,091      319,533

Long-term debt, net of current maturities              425,504      425,625
Other long-term liabilities                             48,784       31,472
Stockholders' equity                                   860,664      819,538
                                                  ------------ ------------
          Total liabilities and stockholders'
           equity                                 $  1,607,043 $  1,596,168
                                                  ============ ============









                        Bio-Rad Laboratories, Inc.
              Condensed Consolidated Statements of Cash Flows

                              (In thousands)
                                (UNAUDITED)


                                                        Three Months
                                                      Ended March 31,
                                                      2007         2006
                                                  -----------  -----------

Cash flows from operating activities:
     Cash received from customers                 $   327,214  $   299,764
     Cash paid to suppliers and employees            (324,067)    (283,973)
     Interest paid                                     (8,540)      (8,938)
     Income tax payments                              (12,424)      (9,562)
     Litigation settlement                             (1,033)     (44,167)
     Other operating activities                         6,209        4,805
                                                  -----------  -----------
     Net cash used in operating activities            (12,641)     (42,071)

Cash flows from investing activities:
     Capital expenditures, net                        (10,636)     (11,318)
     Receipt of restricted cash                             -       36,498
     Other investing activities                        22,494      (16,943)
                                                  -----------  -----------
     Net cash provided by investing activities         11,858        8,237

Cash flows from financing activities:
     Payments on long-term debt                          (123)        (117)
     Other financing activities                         7,388        2,813
                                                  -----------  -----------
     Net cash provided by financing activities          7,265        2,696

Effect of exchange rate changes on cash                   225            9
                                                  -----------  -----------

Net (decrease) increase in cash and cash
 equivalents                                            6,707      (31,129)
Cash and cash equivalents at beginning of period      223,607      296,716
                                                  -----------  -----------
Cash and cash equivalents at end of period        $   230,314  $   265,587
                                                  ===========  ===========


Reconciliation of net income to net cash provided
 by operating activities:

Net income                                        $    26,997  $    31,198
Adjustments to reconcile net income to net cash
 provided by operating activities (net of
 effects of acquisitions):
     Depreciation and amortization                     14,375       12,971
     Changes in working capital                       (51,999)     (53,198)
     Litigation settlement                             (1,033)     (44,167)
     Other                                               (981)      11,125

                                                  -----------  -----------
Net cash used in operating activities             $   (12,641) $   (42,071)
                                                  ===========  ===========



Contact Information

  • For more information contact:
    Christine Tsingos
    Vice President and Chief Financial Officer
    Ron Hutton
    Treasurer
    Bio-Rad Laboratories, Inc.
    510-724-7000
    Email Contact