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Bio-Rad Posts Big Q2 Revenue, Profit Gains on DiaMed Contribution

NEW YORK (GenomeWeb News) – Bio-Rad Laboratories reported after the close of the market on Tuesday that its second-quarter revenues rose 33.4 percent and its net income increased 68.9 percent due largely to the contribution of DiaMed Holding, a developer of blood-typing reagents and screening tools that Bio-Rad purchased last October for $400 million.
 
The Hercules, Calif.-based life sciences tools and diagnostics maker brought in revenues of $452.4 million for the three-month period ended June 30, compared to revenues of $339.1 million in the second quarter of 2007. Bio-Rad said that excluding the contribution from DiaMed, its revenues rose 14.7 percent year over year, or 6.6 percent on a currency-neutral basis.
 
DiaMed contributed $65 million in revenues for the quarter, while currency translation accounted for $27 million, Bio-Rad President and CEO Norman Schwartx noted during the firm's second-quarter conference call.
 
Sales for its life sciences segment increased 10.7 percent, or 3.2 percent excluding currency effects, to $161.6 million. The firm credited sales of reagents and assay panels for its Bio-Plex suspension array system as part of the reason for the revenue gains. However, it noted that capital equipment sales declined slightly, “reflecting a general softness in the market resulting from reduced spending by both academic and bio-pharmaceutical customers.”
 
Bio-Rad’s clinical diagnostics segment reported sales of $287.4 million for the quarter, up 51.4 percent from the comparable period in 2007. Excluding DiaMed, sales for the segment rose 17.9 percent, or 9.4 percent on a currency-neutral basis. The firm said growth came across all product lines, particularly quality control, diabetes, and autoimmune products.
 
Bio-Rad posted a profit of $43.4 million, or $1.58 per share, compared to $25.7 million, or $.95 per share, last year.
 
Its R&D spending rose 21 percent to $42.1 million from $34.8 million, while its SG&A costs climbed 22.6 percent to $146.6 million from $119.6 million year over year.
 
Bio-Rad finished the quarter with $183.6 million in cash and cash equivalents.
 
In early Wednesday trade on the American Stock Exchange, shares of Bio-Rad were up 10.5 percent at $101.83.
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