NEW YORK (GenomeWeb News) – Beckman Coulter reported after the market closed on Thursday that its second-quarter revenues declined 5 percent, as gains for its recurring revenues were offset by a 29 percent decrease in cash instrument sales.
The Orange County, Calif.-based firm brought in total revenues of $756.7 million for the three-month period ended June 30, compared with revenues of $798.3 million for the second quarter of 2008. Its recurring revenues — which includes supplies, service, and lease payments — rose to $629 million from $618.7 million year over year. Its cash instrument sales were $127.7 million versus $179.6 million the year before.
The decline was particularly steep among the firm's cellular analysis and clinical automation cash instrument sales, which were down ore than 30 percent, led by weakness in the US market, said Beckman Coulter. Revenues from the firm's life sciences customers decreased 15 percent, due partially to the weak capital expenditure market, the firm noted.
"Cash instrument sales declined in all major regions as customers remain cautious in their capital spending within a difficult economic environment," Beckman Coulter Chairman, President, and CEO Scott Garrett said in a statement. "Extremely strong cash instrument sales in 2008 will continue to make for a difficult comparison through the first three quarters of 2009. However, a product mix favoring higher margin recurring revenue and continued focus on operating expense management should allow us to deliver on our earnings goals."
Beckman Coulter posted a profit of $60.8 million, or $.94 per share, for the quarter, compared to $45.9 million, or $.71 per share, for Q2 of 2008.
The firm's R&D spending declined 22 percent to $60.7 million from $77.7 million, while its SG&A expenses decreased 7 percent to $198.7 million from $212.7 million. In addition, the company recorded $21.6 million in restructuring and acquisition-related costs during the quarter compared to $4.7 million in such charges in the comparable period a year ago.
Beckman Coulter finished the quarter with $665.5 million in cash and cash equivalents.
"We are updating our full year outlook raising the lower end of our earnings range," said Garrett. "For the full year 2009, we still anticipate 6 percent to 7 percent constant currency recurring revenue growth offsetting weakness in cash instrument sales, yielding 4 percent to 6 percent constant currency growth in total revenue, or roughly flat on a reported basis."