NEW YORK (GenomeWeb News) — Invitrogen yesterday said that third-quarter revenues increased 7 percent while last year’s profit turned to a loss.
Total receipts fro the three months ended Sept. 30 increased to $311 million from $290 million year over year. Revenue grew 3 percent organically.
The company’s Biodiscovery segment grew 2 percent while the Cell Culture Systems segment grew 4 percent.
The company spent $26.8 million on research and development, nearly the same amount as the previous year’s third quarter.
Invitrogen this period posted a net loss of $130 million compared to a profit of $24.million in the same quarter last year.
The company said the net loss was caused by a non-cash charge of $150 million “associated with a goodwill impairment” in its Cell Culture Systems division.
To address recent losses, Invitrogen reiterated it plans to refocus the business on its “go-to market strategy” in regional markets, complete acquisition integrations, and reduce its cost structure.
"After three consecutive years of double-digit revenue and earnings growth, we had expectations to achieve similar results this year. That has clearly not happened,” Invitrogen CEO Greg Lucier said in a statement.
“As a result, we are executing plans to refocus the business on those areas where either science or our leading brand can provide meaningful differentiation. These actions include focusing on improving our go-to-market strategy in regional markets to ensure our sales growth matches the leading reputation we hold for being the quality and technology leader in scientific tools, completing the acquisition integrations, and responsibly reducing our cost structure.”
Lucier said these plans “will set the company up for a solid year of execution in 2007.”
Not every investor agreed. Citigroup downgraded Invitrogen’s stock to ‘Hold’ from ‘Buy’ today. According to Marketwatch, the bank’s broker said that although the company is close to wrapping up its business review, “management didn't provide sufficient clarity on the potential steps it may take to improve next year's outlook given recent operating margin pressures.”
Invitrogen closed the quarter with around $512 million in cash and investments.