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Bio-Rad's Q2 Revenues Rise 12 Percent

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Bio-Rad Laboratories reported after the close of the market Tuesday that its second-quarter revenues increased nearly 12 percent on strong sales for its Life Science segment, but the firm missed analysts' consensus estimate on the bottom line.

The Hercules, Calif.-based diagnostics and research tools firm reported total revenues of $521.7 million for the three-month period ended June 30, compared to $467.7 million for the second quarter of 2010. On a currency-neutral basis, its Q2 revenues increased 4 percent year over year.

Bio-Rad topped Wall Street's estimate of $508.2 million for the quarter.

Its Life Sciences segment had 13 percent revenue growth to $169.9 million. The company cited electrophoresis and imaging product lines as key growth drivers.

"Sales in North America were particularly strong during the quarter, partially offset by the continued challenges in the European research market," Bio-Rad CFO Christine Tsingos said during a conference call following the release of the results.

The firm's Clinical Diagnostics segment had 11 percent growth to $348 million.

On a currency-neutral basis, Life Science sales increased 7 percent while Clinical Diagnostics sales increased 3 percent.

Bio-Rad's net income for the quarter was $40 million, or $1.41 per share, compared to $38 million, or $1.35 per share, for Q2 2010. It missed analysts' consensus estimate of $1.47.

The firm's R&D spending for the quarter was $48.2 million, up 10 percent from $43.9 million. Its SG&A expenses increased 13 percent to $176.7 million from $156.3 million. The SG&A expenses include $15 million of additional expense tied to currency translation, Tsingos noted.

She added that the firm's effective tax rate was higher than expected due to a change in geographical sales and product mix, as well as additional tax reserves related to ongoing tax audits.

Bio-Rad finished the quarter with $670.3 million in cash and cash equivalents and $215.9 million in short-term investments.

"Given the challenges in certain geographies and markets around the world our outlook for 2011 remains relatively unchanged from the guidance we gave in February … for top-line, currency-neutral organic growth to be in the 5 percent range," Tsingos said.

In Wednesday morning trade on the New York Stock Exchange, shares of Bio-Rad were down around 4 percent at $99.78.