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Thermo Fisher Posts 19 Percent Q1 Revenue Growth

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Thermo Fisher Scientific today reported first-quarter 2010 revenue growth of 19 percent, with strong sales for both its Analytical Technologies and Laboratory Products and Services segments.

The firm generated total revenues of $2.68 billion for the three-month period ended April 3, compared to revenues of $2.26 billion for the first quarter of 2009. Excluding a benefit of 3 percent from currency translation and 3 percent from acquisitions, Thermo Fisher's organic revenue growth was 13 percent, slightly better than the firm's expectations heading into the quarter. The results easily beat analysts' consensus estimate for revenues of $2.51 billion.

Its Analytical Technologies segment had revenues of $1.11 billion, up 18 percent from revenues of $939 million in 2009. Its Laboratory Products and Services segment had 19 percent revenue growth to $1.7 billion from $1.42 billion.

Pete Wilver, Thermo Fisher's CFO, said during a conference call this morning that revenue growth for instrument and equipment was in the mid-teens, while consumables grew in the low double digits, and service revenues grew in the high single digits.

"Market trends are in line with our expectations and similar to what we experienced in Q4 2009," Thermo Fisher President and CEO Marc Casper said during the call. "In biopharma markets, capital spending is still constrained," but he noted that the firm's top 20 accounts in the biopharma space showed "strong double digit organic growth in the quarter."

Casper said that the firm had over $60 million revenues in the quarter related to stimulus funding, much of that coming from Japan and some from the US. "Our performance in mass spec overall was incredibly strong in Q1, even beyond stimulus," said Casper. He added that the firm still expects to realize its goal of between $50 million and $150 million in stimulus-related revenue in 2010.

Thermo Fisher's net income jumped sharply to $232.3 million, or $.56 per share, from $148.9 million, or $.35 per share. On a Non-GAAP basis, its EPS was $.84, beating analysts' consensus estimate of $.75.

Its R&D expenses increased 15 percent to $66.8 million from $58.2 million, while its SG&A spending rose 18 percent to $601.9 million from $509.5 million. The firm also reported restructuring and other costs of $17.4 million versus $13.6 million for Q1 2009, as well as amortization of acquisition-related intangible assets of $151.1 million versus $145.3 million.

Thermo Fisher finished the quarter with $1.43 billion in cash and cash equivalents and $8.5 million in short-term investments.

Company officials raised the low end of the firm's revenue guidance to a new range of between $10.65 billion and $10.8 billion, up 5 percent to 7 percent over 2009. The firm also upped its EPS guidance for FY 2010 to a range of between $3.40 and $3.50.

In early Wednesday trade on the New York Stock Exchange, shares of Thermo Fisher were up 3 percent at $55.25.

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