NEW YORK (GenomeWeb News) - Biacore today said that despite a 21-percent jump in sales for the second quarter, profits dropped 80 percent as as a tax credit inaffected Q2 2005 earnings, and costs in the current period increased.
For the quarter ended June 30, sales rose 21 percent to SEK 162 million ($22.1 million) from SEK 133 million a year ago. Sales in Europe and US rose 33 percent and 48 percent, respectively, but Asia-Pacific sales declined by 50 percent.
Biacore, which is set to be acquired by GE Healthcare, posted second-quarter net income of SEK 23 million, or SEK 2.38 per share, versus SEK 113 million, or SEK 11.62 per share, during the same period last year. The company said contributing to the decline in profits this quarter was a SEK 97 million tax credit included in net income for the second quarter 2005.
R&D spending declined to SEK 26 million from SEK 27 million in the second quarter of 2005.
The company modified its forecast for the full-year 2006. Biacore said it expects 2006 sales to increase "at a somewhat higher rate than in 2005 with operating income growing faster than sales."
As of June 30, Bioacore had SEK 181.6 million in cash and cash equivalents.