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Bio-Rad, Sequenom, Millipore

Bio-Rad’s Q2 Revenues Rise 7 Percent, but Year-Ago Settlement Cuts Profit
 
Bio-Rad Laboratories this week said that its second-quarter revenues increased 7 percent as R&D spending rose 13 percent and profit tumbled 20 percent.
 
Total revenues for the three months ended June 30 increased to $339.1 million from $317.7 million year over year. On a currency-neutral basis, revenues increased 3 percent compared to the second quarter of 2006.
 
In the second quarter last year, the company reported one-time additional revenue of $11.7 million due to a licensing settlement with bioMerieux. Excluding that revenue, growth for the second quarter in 2007 was 10.8 percent compared to the second quarter of 2006, Bio-Rad said.
 
Revenue from the company’s Clinical Diagnostics segment rose 5.4 percent to $189.8 million, while receipts from the Life Science division grew by 8.6 percent to $146 million.
 
Growth in the Clinical Diagnostics segment was driven by “continued growth across all product lines, especially in blood virus, autoimmune, and quality control products,” the company said in a statement. Excluding the bioMerieux revenues from the year-ago period, the division’s revenue was up 12.7 percent.
 
The company said growth in the Life Sciences division was in part due to increased sales of its ProteOn and Bio-Plex array system lines and associated reagents as well as chromatography media. Growth was “somewhat tempered,” however, by a fall-off in its bovine spongiform encephalopathy tests, “as both the number of animals tested and the average selling price continues to decline.”
 
The firm’s R&D spending rose to $34.8 million from $31 million year over year, while SG&A costs rose to $119.6 million from $110.5 million.
 
Bio-Rad's net income fell to $25.7 million, or $.95 per share, from $32.3 million, or $1.20 per share, in the year-ago period. Excluding the impact of the bioMerieux settlement, net income was “approximately the same” as the second quarter of 2006, the company said.
 
Bio-Rad finished the second quarter with around $232.4 million in cash and cash equivalents and $270.5 million in short-term investments.
 

 
Sequenom’s Q2 Revenues Rise 41 Percent
 
Sequenom this week said that its second-quarter revenue jumped 41 percent as R&D spending climbed 79 percent and net loss grew 23 percent.
 
Sequenom said that its revenues for the three months ended June 30, 2007 rose to $10.2 million from $7.2 million year over year.
 
"We are executing well against our growth strategy, resulting in a greater than 40 percent revenue increase for the second quarter, compared with the same period last year, due to increased MassArray product and services sales," CEO Harry Stylli said in a statement.
 
Sequenom said sales of consumables rose 22 percent to $3.8 million from $3.1 million, and other product-related sales increased 38 percent, contributing $5.4 million to second-quarter revenue.
 
Services sales were up nearly 400 percent to $941,000 from $190,000 from the year-ago period.
 
The firm’s R&D spending increased to $4.3 million from $2.5 million year over year.
 
The company said its net loss grew to $4.8 million, or $.13 per share, from $3.9 million, or $.21 per share, in the year-ago quarter.
 
Sequenom adjusted its revenue expectations for the full-year 2007 upward by between 37 percent and 44 percent. It now expects to see between $39 million and $41 million in revenue for the year.
 
The company also lowered its net loss forecast for the year to between $19 million and $21 million from its previously estimated range of $23 million to $25 million.
 
Sequenom said it had $35 million in cash, cash equivalents, short-term investments and restricted cash as of June 30, 2007.
 

 
Millipore Profit Drops Despite 40 Percent Revenue Increase in Q2
 
Millipore last week reported that its second-quarter revenues increased 40 percent as R&D spending swelled 32 percent and profit dropped 2 percent.
 
The firm posted revenues of $383.2 million for the three months ended June 30, up from $273.8 million for the second quarter of 2006.
 
Sales in the company's Bioprocess segment rose 36 percent to $226.8 million, while Bioscience revenue rose 46 percent to $156.4 million. Excluding currency rate changes and acquisitions, organic revenue growth in the second quarter was 11 percent. This included 14 percent organic growth in the Bioprocess segment and 5 percent organic growth in the Bioscience segment.
 
Martin Madaus, chairman and CEO of Millipore, said in a statement that the company “successfully completed the integration of Serologicals in the second quarter." Millipore purchased Serologicals a year ago for $1.4 billion (see BioCommerce Week 4/26/2006).
 
“During the intense twelve-month integration process, we met more than 800 milestones and are now operating as one company, on common systems,” he said.
 
Despite the company’s strong overall performance, Madaus said, "Our Bioscience Division is not delivering the double-digit organic revenue growth we expected at the beginning of the year.
 
"Our efforts to grow our market share and increase the productivity of our sales organization are taking longer than expected due to our focus on completing the integration," Madaus continued. For those reasons, he said, "We no longer expect the Bioscience Division's organic growth in 2007 to outpace the growth of the overall market."
 
Millipore’s R&D spending increased to $26 million from $19.7 million year over year.
 
The company said its net income fell to $28.4 million, or $.52 per share, from $29.1 million, or $.54 per share, in the year-ago period.
 
Selling, general and administrative costs over the quarter increased 40 percent to $123.1 million.
 
Millipore said it had around $53.9 million in cash and cash equivalents as of June 30.