NEW YORK, April 27 (GenomeWeb News) - Applied Biosystems today reported that fiscal third-quarter sales increased 8 percent as R&D spending declined 6 percent and profits surged 121 percent.
Total revenues for the three months ended March 31 increased to $490.7 million from $454.8 million in the year-ago period. Revenue from the firm's DNA sequencing segment declined 4 percent to $136.5 million, while mass spec sales jumped 9 percent to $113.9 million, core PCR and DNA synthesis revenue increased 4 percent to $51.7 million, and "other" product lines inched up 1 percent to $26.4 million.
Revenue from the RT-PCR and applied genomics segment surged 23 percent year over year to $162.2 million, though the increase was buoyed by revenue generated by an Ambion business ABI acquired March 1.
ABI said the Ambion assets contributed 1 percent to total third-quarter revenue and unfavorable currency valuations shed around 2 percent from the company's top line. Receipts also included around $14 million in licensing fees and royalty payments related to ABI's settlement with Bio-Rad Laboratories and its MJ Research business.
ABI said fiscal third-quarter R&D spending declined to $48 million from $51 million year over year.
Profits, however, surged in the period to $124.4 million, or $.67 per basic share, from $55.5 million, or $.28 per basic share. For the quarter, certain items decreased profits by a total of $5.4 million, ABI said. These items included a pre-tax charge of $35 million ABI paid as part of an agreement with Beckman Coulter to settle certain patent infringement claims against ABI; $33.4 million related to the Bio-Rad settlement; a $3.4 million pre-tax charge to write off certain parts of the Ambion acquisition; and a $900,000 "favorable" pre-tax adjustment for a previously recorded asset impairment.
The fiscal third quarter also included $63.3 million in tax benefits related to a completed IRS exam, a state valuation allowance reversal, and research and development credits, ABI said.
ABI does not disclose its balance sheet.
Looking ahead, the company said expects revenue for the remainder of the fiscal year to grow in the mid-single-digit range. ABI said it expects revenue to continue to grow in its RT-PCR/applied genomics, mass spec, and core PCR and DNA synthesis product categories. The company also said it expects revenue to decline in DNA sequencing and "other" product lines.