In a conference call to discuss guidance for the 2003 fiscal year last week, Invitrogen officials said the company had completed its acquisition of InforMax, acquiring 100 percent of the software company’s shares on December 9.
Eric Winzer, Invitrogen CFO, said the company expects InforMax to make up $16 million of its projected $728 million in revenues for 2003 — adding 2 percent to its total revenues for the year. Invitrogen will include InforMax’ December 2002 results — $1-$1.5 million — in its Q4 earnings.
InforMax is on track to earn $15.1-$15.6 million in revenues for 2002, according to company projections. It reported $25.2 million in revenues in 2001 and $17.1 million in 2000.
John Carrino, vice president of R&D at Invitrogen, reiterated the company’s strategy to incorporate the InforMax software line into its upcoming e-commerce platform. The company intends to develop additional informatics tools, Carrino said, with the intention of linking together all of its platform technologies.
James Glynn, recently promoted from CFO to president and COO of Invitrogen in the wake of founder and CEO Lyle Turner’s decision to step down at the end of the year, added that the company wants to make it easier for its customers to find and order its products. “We plan to leverage InforMax’ capabilities to create synergizing bioinformatics tools to help scientists design experiments and order products through our portal,” he said. Invitrogen’s website tallied over 36 million hits this year, Glynn said — a sure sign that informatics-based e-commerce will help it sell its products.
While InforMax will remain “dilutive” to Invitrogen’s bottom line in early 2003, Winzer said he expects the subsidiary will “work its way toward break-even at the end of the year,” although the strategy for reaching break-even was not discussed.
As Invitrogen works to make the subsidiary profitable, heavy layoffs are highly likely, in line with Invitrogen’s track record at Research Genetics, Life Technologies, and other recent purchases. Glynn opted to spin this history in a positive manner, however. “We merged five companies in the last three years,” he said. “Each had individual, successful cultures, and we’ve been able to create one culture that brings the strength of all five of those together.”
Further details of InforMax’ assimilation into Invitrogen were not provided. The company is “putting the final touches on our operating plans and integration plans,” Winzer said, and expects to have a better picture of its strategy ready in early January.