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ABI Shares Climb 6.2 Percent on Strong Fiscal Q3 Profits

NEW YORK, April 27 (GenomeWeb News) - Shares in Applied Biosystems were up 6.16 percent, or $1.67, at $28.80 in mid-afternoon trading after the company posted  strong fiscal third-quarter results.

 

As GenomeWeb News reported this morning, ABI said 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.

 

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 company also today said it is  trying to settle an ongoing patent dispute with Beckman Coulter.