Skip to main content
Premium Trial:

Request an Annual Quote

Invitrogen, Beckman Coulter

Premium
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 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 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

US Booster Eligibility Decision

The US CDC director recommends that people at high risk of developing COVID-19 due to their jobs also be eligible for COVID-19 boosters, in addition to those 65 years old and older or with underlying medical conditions.

Arizona Bill Before Judge

The Arizona Daily Star reports that a judge weighing whether a new Arizona law restricting abortion due to genetic conditions is a ban or a restriction.

Additional Genes

Wales is rolling out new genetic testing service for cancer patients, according to BBC News.

Science Papers Examine State of Human Genomic Research, Single-Cell Protein Quantification

In Science this week: a number of editorials and policy reports discuss advances in human genomic research, and more.