NEW YORK (GenomeWeb News) - Invitrogen yesterday said that total second-quarter revenue inched up 2 percent as net income jumped 32 percent.
The company also cut its full-year 2006 revenue projection but announced a $500 million share repurchase program.
News of the revenue miss caused shares in Invitrogen to trade down 6.88 percent, or $4.29, at $58.09 early this morning.
Receipts for the three months ended June 30 increased to $313 million from $306 million year over year. Revenues were impacted by a 1-percent decline in organic growth and positive results from recent acquisitions.
According to Marketwatch.com, analysts polled by Thomson First call projected Invitrogen to post $320 million in revenue.
Receipts from its BioDiscovery unit increased 3 percent while BioProduction declined 8 percent. Declining sera revenue affected BioProduction’s revenues, but healthy demand for cell culture research media partially offset the decline, Invitrogen said.
R&D costs increased almost 10 percent to $26.6 million from $24 million from the comparable quarter a year ago.
The company said net income increased to $19.7 million from $14.9 million during the comparable period last year.
Invitrogen expects to have approximately $1 billion in cash by year-end, making the three-year buyback program feasible, said CFO David Hoffmeister. He said the company will “continue to evaluate potential acquisitions.”
Invitrogen said it had around $733 million in cash and investments as of June 30.
Invitrogen lowered its revenue outlook for 2006, citing "lower than expected growth from some of the acquisitions," mainly due to site consolidations, as well as uncertainty about sales of its sera products.
The company now expects revenue of $1.26 billion to $1.30 billion, down from the $1.30 billion to $1.35 billion it projected in April, CFO David Hoffmeister said on a conference call.