NEW YORK (GenomeWeb News) - Beckman Coulter today said second-quarter revenues increased 12 percent as R&D spending was down 22 percent and profit grew 56 percent.
Total receipts for the three months ended June 30 increased to $689.7 million from $616.3 million year over year.
Product-related revenue increased 13 percent to $584.7 million while service-related revenue was up 7 percent to $105 million. Sales of consumables grew 10.3 percent, the company said.
The acquisition of Lumigen, which the company bought in the fourth quarter of 2006, contributed about 1.6 percent to consumables sales growth. Recurring revenue, which includes supplies, test kits, service revenue, and operating-type lease payments revenue, accounted for around 78.6 percent of total revenue.
R&D spending fell to $58.8 million from $75.1 million in the second quarter of 2006.
Net income increased to $69.4 million from $44.6 million in the year-ago period.
The company also hauled in a net gain of $40.6 million from a break-up fee related to Biosite’s decision to back out of a merger agreement with Beckman in favor of a higher bidder, Inverness Medical Innovations. Last year's second-quarter results included a $35 million payment from Applied Biosystems to Beckman to settle litigation between the firms related to DNA sequencers and thermal cyclers.
Beckman said it had around $62 million in cash and cash equivalents as of June 30, 2007.
The company said it expects 2007 revenue to grow between 7 percent and 9 percent year over year.