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Invitrogen, Beckman Coulter

Invitrogen Posts 2-Percent Q2 Revenue Increase, Missing Estimates; Cuts '06 Outlook
Invitrogen this week 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.
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, 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 weakness in its cell culture business, “lower-than-expected growth from some of the acquisitions” mainly due to site consolidations, and 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.

Beckman's Q2 Sales Miss Target as Profits Fall 20 Percent
Beckman Coulter this week reported a slight decrease in second-quarter sales accompanied by a 19-percent drop in net income.
Total receipts for the three months ended June 30 declined to $616.3 million, from $618.8 in the same period last year. Beckman had initially forecast revenues to be between $620 million and $645 million, and the company blamed the lower-than-expected revenues on lagging sales in the Asian market.
Research and development costs rose 50 percent to $75 million from $50 million year over year.
Net income for the quarter dropped 19 percent to $44.6 million from $55.2 million in the prior-year period.
As of June 30, Beckman Coulter had $59.4 million in cash and cash equivalents.
Beckman CEO Scott Garrett said that "revenues in the Far East were disappointing due to a combination of factors” including slower-than-expected transition to a direct sales model in China and the fact that “hospitals are delaying purchases due to an expanding Chinese government review of overall hospital buying practices.”
Garrett said that Beckman expects to be “back on track with [its] double-digit growth trend” by the beginning of 2007.

The Scan

Octopus Brain Complexity Linked to MicroRNA Expansions

Investigators saw microRNA gene expansions coinciding with complex brains when they analyzed certain cephalopod transcriptomes, as they report in Science Advances.

Study Tracks Outcomes in Children Born to Zika Virus-Infected Mothers

By following pregnancy outcomes for women with RT-PCR-confirmed Zika virus infections, researchers saw in Lancet Regional Health congenital abnormalities in roughly one-third of live-born children.

Team Presents Benchmark Study of RNA Classification Tools

With more than 135 transcriptomic datasets, researchers tested two dozen coding and non-coding RNA classification tools, establishing a set of potentially misclassified transcripts, as they report in Nucleic Acids Research.

Breast Cancer Risk Related to Pathogenic BRCA1 Mutation May Be Modified by Repeats

Several variable number tandem repeats appear to impact breast cancer risk and age at diagnosis in almost 350 individuals carrying a risky Ashkenazi Jewish BRCA1 founder mutation.