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Bio-Rad Posts 3 Percent Revenue Growth for Q2

NEW YORK (GenomeWeb News) – Bio-Rad Laboratories reported after the close of the market Tuesday that its second quarter revenues increased 3 percent year over year, due in part to its January acquisition of AbD Serotec.

The Hercules, Calif.-based firm brought in total revenues of $525.3 million for the three months ended June 30, compared to $$510.4 million for the second quarter of 2012. It fell short of the consensus Wall Street estimate of $532.6 million.

Bio-Rad's Life Science business segment had sales of $170.4 million for the quarter, up 5 percent year over year and up 6 percent on a currency-neutral basis. AbD Serotec contributed $6.2 million, and the firm said that sales also were boosted by its Droplet Digital PCR product line.

Its Clinical Diagnostics segment recorded sales of $351.5 million, up 2 percent over Q2 2012 and 3 percent on a currency-neutral basis. It said the results reflect growth in its quality controls and diabetes products, as well as its BioPlex 2200 System.

"Overall, the quarterly top-line growth was impacted by continued challenges in certain areas of Europe, especially for our diagnostic products, as well as cautionary funding flows in the academic and government research market," Bio-Rad CFO Christine Tsingos said during a conference call following the release of the results.

Bio-Rad posted net income of $34.7 million, or $1.22 per share, for the quarter, compared to 448.2 million, or $1.71 per share, for Q2 2012. Analysts, on average, had expected $1.25.

The firm's R&D spending increased 2 percent year over year to $53.2 million from $52.3 million, while its SG&A expenses jumped 20 percent to $195.3 million from $162.3 million.

"In the second quarter of last year, SG&A included two significant one-time items that had the effect of lowering the reported expense by more than $13 million," said Tsingos. "These two unique items were the reduction in the value of the QuantaLife earn out, and the reversal of approximately $5 million of bad debt reserves.

"In addition to these tough-to-compare items, SG&A expense related to our global SAP project increased significantly versus last year, as we are now expensing the internal and external labor costs related to the project, which in the past have been capitalized," she added, noting that Q2 2013 SG&A includes $2.2 million for the amortization of intangibles related to acquisition.

Bio-Rad finished the quarter with $367 million in cash and cash equivalents and $467.4 million in short-term investments.

"As we look to the full year for 2013, we remain cautiously optimistic of achieving the currency-neutral sales growth guidance of 3 to 3.5 percent for the base business we provided last February, as well as our expectation of a 3.5 to 4 percent top-line growth when including the Serotec sales," said Tsingos.

In Wednesday morning trade on the New York Stock Exchange, shares of Bio-Rad were down a fraction of 1 percent at $115.07.