NEW YORK (GenomeWeb News) — Beckman Coulter today reported a slight decrease in second-quarter sales accompanied by a 19-percent drop in net income.
Total receipts for the three months ended June 30 declined to $616.3 million, from $618.8 in the same period last year. Beckman had initially forecast revenues to be between $620 million and $645 million, and the company blamed the lower-than-expected revenues on lagging sales in the Asian market.
Research and development costs rose 50 percent to $75 million from $50 million year over year.
Net income for the quarter dropped 19 percent to $44.6 million from $55.2 million in the prior-year period.
As of June 30, Beckman Coulter had $59.4 million in cash and cash equivalents.
Beckman CEO Scott Garrett said that the "revenues in the Far East were disappointing due to a combination of factors” including slower-than-expected transition to a direct sales model in China and the fact that “hospitals are delaying purchases due to an expanding Chinese government review of overall hospital buying practices.”
Garrett said that Beckman expects to be “back on track with [its] double-digit growth trend” by the beginning of 2007.