NEW YORK (GenomeWeb News) – Driven by its Research business, Califer Life Sciences reported after the close of the market on Tuesday a 32 percent year-over-year increase in revenues for the second quarter.
For the three months ended June 30, total revenues climbed to $38.3 million, up from $29.1 million a year ago. Organically, revenues grew 23 percent year over year, the company said.
Wall Street had expected $34.4 million in total revenues.
Research revenues paced growth in the quarter, increasing 39 percent to $18.3 million from $13.2 million. The business comprises LabChip — which saw revenues increase in the quarter to $11.2 million from $7.4 million, a 51 percent bounce — and Automation, whose revenues rose 23 percent to $7.1 million from $5.8 million.
"We had a robust quarter in our Research business unit due to strong ongoing adoption of our NGS sample preparation solutions, molecular diagnostics penetration with the LabChip Dx, and continued LabChip GX adoption driven by biotherapeutic and vaccine development," Caliper President and CEO Kevin Hrusovsky said in a statement.
Caliper's Imaging business posted revenues of $18.2 million, up 23 percent from $14.8 million a year ago, while Services increased 80 percent to $1.8 million from $1 million.
On a conference call following the release of Caliper's earnings, Hrusovsky noted next-generation sequencing as a growth opportunity for the firm and said that the company is investing R&D dollars into products that address both high-throughput and benchtop sequencing.
In benchtop sequencing, the company is investing into products to "completely automate the sample prep bleed to read for feeding the … systems," he said, although he acknowledged that "it's going to take some time, however, for the sample volumes to catch up, and it's the sample volumes … when that gets intense, [that] our technologies play a role."
He added that Caliper is starting to have "a rapid build-out … of our microfluidic … automation" in the clinic for next-generation sample preparation. While currently it represents only about 5 percent of Caliper's overall revenues, "we believe this is going to be a very fast growing segment," Hrusovsky said.
He also said that as Caliper's value increases, it may look to add to its reagent technology capabilities through acquisitions. "As we continue to elevate our multiple, we think that that is going to become an opportunity for us," he said.
By segment, product revenues rose to $26.7 million from $20.5 million, a 30 percent increase year over year; service revenues bounced 28 percent to $6.8 million from $5.3 million; and license fees and contract revenue increased 50 percent to $4.8 million from $3.2 million.
The Hopkinton, Mass.-based company saw a net loss of $3.2 million, or $.06 per share, for the quarter, compared to a profit of $9.2 million, or $.18 per share, a year ago. The second quarter of 2010 included an $11.4 million gain on divestitures.
On a non-GAAP basis, Caliper had EPS of $.02 beating the consensus analyst loss-per-share estimate of $.02.
The company took a restructuring charge of about $1.3 million during the quarter associated with the closure of the Cambridge Research & Instrumentation facility in Woburn, Mass. Caliper bought CRi for about $20 million in December.
It also took a charge of $1.1 million, in addition to scheduled amortization, "to write off certain in-process research and development assets deemed to no longer have value," it said.
During the year-ago period Caliper also took a gain on the divestiture of its former specialty products business, it added.
The company spent $5.5 million on R&D, up 28 percent from $4.3 million a year ago. Its SG&A costs increased 25 percent year over year to $13.5 million from $10.8 million.
The company exited the quarter with $34.3 million in cash, cash equivalents, and marketable securities.
For full year-2011, Caliper is providing revenue guidance of between $146 million and $152 million. On the conference call CFO Peter McAree also raised EPS guidance to a range of $.02 to $.06 from an earlier guidance of a loss per share of $.03 to $.05.
For the third quarter it expects revenues in the range of $33 million to $36 million.
In early Wednesday trade on the Nasdaq, shares of Caliper were up 3 percent at $8.26.