NEW YORK (GenomeWeb News) – Caliper Life Sciences today reported a 10 percent decrease in second-quarter revenues, due to divestitures over the past year. However, its ongoing business had a revenue increase of 4 percent year over year.
The Hopkinton, Mass.-based firm reported total revenues of $29.1 million for the three-month period ended June 30, compared to $32.1 million for the second quarter of $29.1 million. Its product revenue declined to $20.5 million from $21.5 million, while its service revenue fell to $5.3 million from $7.9 million, and its license fees and contract revenue was up to $3.2 million versus $2.7 million.
Caliper said that its IVIS and LabChip products now account for 77 percent of its revenues, adding that these product lines together had 14 percent revenue growth, and 16 percent organic growth, year over year.
Within the past nine months, Caliper divested two pieces of its business, as it focuses on its core technologies. In December 2009, the firm sold its Xenogen Biosciences subsidiary to Taconic Farms for about $11 million. It followed that sale with the divestiture a couple of months ago of its RapidTrace solid phase extraction and TurboVap evaporation product lines to Biotage for $16.5 million in cash.
Revenues for the Caliper Discovery Alliances and Services business, which account for only around 6 percent of Caliper's total revenues, were down sharply year over year, which Caliper attributed to an unfavorable comparison to the same period of 2009 and project delays under its Environmental Protection Agency ToxCast contract. In May, the firm received a $2.9 million task order from for the ToxCast screening program, increasing its current backlog of Phase II task orders to $4.7 million.
Caliper President and CEO Kevin Hrusovsky noted during a conference call following the release of the Q2 results that the firm's automation business was down around 20 percent year over year, primarily due to the firm refocusing its automation business on to its LabChip technologies. "We expect to see the fruits of that [refocusing], starting with sequential growth in Q3, but year-on-year growth we expect we'll see in 2011," he said.
Caliper's net income for the quarter was $9.2 million, or $.18 per share, compared to a net loss of $4.1 million, or $.08 per share, for Q2 2009. The firm realized an $11.1 million after-tax divestiture gain during the most recent quarter. On a non-GAAP basis, Caliper posted EPS of $0.00 versus a loss of $.05 for the second quarter of 2009.
Caliper's R&D spending fell nearly 7 percent to $4.3 million from $4.6 million, while its SG&A spending fell 5 percent to $10.7 million from $11.3 million.
The firm finished the quarter with $37.6 million in cash, cash equivalents, and marketable securities.
Caliper maintained its guidance for 4 percent to 6 percent organic revenue growth for full-year 2010.