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Invitrogen Posts 2-Percent Organic Revenue Growth in Q1 as Profit Stumbles; BioProduction Sales Slide

NEW YORK, April 28 (GenomeWeb News) - Invitrogen yesterday reported that first-quarter revenue grew 2 percent organically as R&D spending surged 37 percent and profits slumped dramatically.

 

Total receipts for the three months ended March 31 increased 11.5 percent to $309 million from $277 million in the year-ago period. However, organic growth was 2 percent as recent acquisitions positively impacted total growth by 13 percent and currency effects hurt it by 3 percent, the company said.

 

Invitrogen said its BioDiscovery unit grew 7 percent organically year over year, though revenue from the BioProduction unit declined 5 percent organically.

 

"While we're disappointed with our revenue performance in US Bioproduction and Japan, we are confident that specific actions are in place to impact the growth trajectory for these areas," Greg Lucier, chairman and CEO, said inn a statement. He also said the company is "pleased" with the results in Europe, the US research, and emerging markets.

 

First-quarter R&D spending surged to $28.9 million from $21.2 million in the year-ago period.

 

Profit for the period slumped to $19.2 million, or $.35 per basic share, from $47 million, or $.82 per share, year over year. Invitrogen said the results were in part due to $0.21 per share in Q1 2005 income related to currency gains associated with its acquisition of Dynal and stock sale gains that did not occur in Q1 2006. Similarly, Q1 2006 earnings included $0.23 per share of higher costs associated with acquisition-related amortization and costs, business integration, and other factors.

 

Invitrogen said it had around $715 million in cash and investments as of March 31.