NEW YORK, May 5 (GenomeWeb News) - Stratagene said yesterday that its first-quarter revenues fell 1.2 percent to $24.3 million from $24.6 million in the comparable quarter last year. The firm said that excluding the negative effects of currency translation, its revenues rose 1.6 percent year over year.
Stratagene also reduced its full-year revenue guidance by $2 million to a range of $98 million to $102 million.
The company said its first-quarter revenue decline was due to the impact of the strengthening dollar on foreign sales, a decline in sales of older products focused on gene discovery and cloning systems, and an increase in product backlog.
"Based upon our first-quarter results and our current outlook for the remainder of 2006, we now believe that the faster-than-expected decline in some of our legacy life science product sales will have a meaningful impact on revenue and earnings this year," said Steve Martin, vice president and CFO.
However, the firm expects sales of its quantitative PCR instruments and reagents to increase throughout 2006. This expectation is partly based on its partnership with Bayer Healthcare, which is purchasing customized Mx3005P QPCR systems from Stratagene for sale in the molecular diagnostics market worldwide.
Stratagene posted a 62 percent decline in its first-quarter net profit to $1.1 million, or $.05 per share, from $2.9 million, or $.13 per share, in the first quarter last year.
The firm's results this year include $1.1 million, or $.03 per share, in charges related to patent litigation matters. In addition, last year's Q1 results included $530,000, or $.02 per share, in income related to a litigation settlement.
Stratagene's first-quarter R&D expenses increased 17.3 percent year over year to $3.4 million from $2.9 million.
As of March 31, Stratagene had cash and cash equivalents of $30.6 million. Included in that amount is $21 million that was set aside in January as collateral for a bond as the firm appeals a judgment and damages in a patent dispute with Third Wave Technologies.