NEW YORK (GenomeWeb News) – Bio-Rad reported after the close of the market Tuesday that its second-quarter revenues increased around 9 percent, with double-digit growth for its clinical diagnostics business offsetting slow growth for its life science segment.
The Hercules, Calif.-based firm brought in total revenues of $467.7 million for the three-month period ended June 30, compared to revenues of $427.2 million for the second quarter of 2009. It missed analysts' consensus estimate of $473.9 million.
Bio-Rad's life science segment had revenues of $150.7 million for the quarter, up nearly 1 percent year over year. Its clinical diagnostics business had robust growth of almost 15 percent to $314.1 million. It said diagnostics sales growth came from all products lines and cited quality controls, blood typing, and diabetes monitoring, as well as additional revenue from the diagnostics businesses of Biotest, which the firm purchased earlier this year, as key growth drivers.
The Biotest business contributed $14.5 million in revenues for the quarter. Excluding those sales, Bio-Rad's revenues were up 6 percent year over year.
Bio-Rad also said that its next-generation PCR instruments, most notably the CFX96 real-time PCR detection system and associated reagents, helped Q2 revenue growth for the life science segment.
"The economic challenges of the European research market continue to be a strong headwind for the tools business," said Bio-Rad CFO Christine Tsingos during a conference call after the release of the results.
The market in Europe "has really been about the same for the past three or four quarters," added Brad Crutchfield, Bio-Rad's group manager of the life science group. He said government-sponsored research in certain countries within Europe remains weak. However, he said, the US life science business is strong, particularly among academic customers.
Bio-Rad's net income for the quarter was $38 million, or $1.35 per share, compared to $38 million, or $1.37 per share, for the second quarter of 2009. Analysts, on average, had expected EPS of $1.28.
Its R&D spending increased nearly 4 percent to $43.9 million from $42.4 million, and its SG&A spending increased 9 percent to $156.3 million from $143.7 million.
Bio-Rad finished the quarter with $614.2 million in cash and cash equivalents and $103.5 million in short-term investments.
Tsingos said that the firm's outlook for 2010 remains "relatively unchanged" from its previous guidance. The firm expects top-line, currency-neutral, organic growth of around 5 percent. She also noted that Biotest is expected to contribute $55 million to $60 million in revenues for the full year.