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Life Technologies' Q2 Revenues up 2 Percent; Raises Full-Year Expectations

NEW YORK (GenomeWeb News) – Life Technologies today reported that its second-quarter revenues increased 2 percent, or 7.5 percent excluding the impact from currency exchange, on strong gains for its Molecular Biology Systems and Genetic Systems divisions.

The firm, which was formed by last year's merger of Invitrogen and Applied Biosystems, reported non-GAAP revenues of $839.1 million for the three-month period ended June 30, compared to non-GAAP revenues of $821.6 million for the combined firms, which were separate entities for the comparable period a year ago.

Life Technologies' Molecular Biology Systems division had revenue of $399 million for the quarter, up 3 percent year over year, and up around 8 percent excluding the impact of currency translation. Its Genetic Systems division had revenue of $233 million, up 5.5 percent or 11 percent excluding currency translation.

The firm said that revenue growth came from consumables kits and capillary electrophoresis instruments in the applied markets and accelerating sales for its SOLiD next-generation sequencing platform. It also said that sales of influenza A (H1N1)-related products helped drive sales growth for its Molecular Biology Systems division.

Life Technologies' Cell Systems division had revenues of $201 million for the quarter, down 2 percent year over year but up 4.5 percent excluding currency translation. Its Mass Spectrometry division, which is a joint venture with MDS Analytical Technologies, had revenues of $129 million, down 12 percent excluding currency effects.

Life Technologies' non-GAAP net income for Q2 was $141.1 million, or $.79 per share. It did not provide a comparable figure for the combined firms a year ago. The non-GAAP EPS easily beat analysts' consensus estimate of $.66 per share.

Its GAAP net income, which includes a variety of charges related to the merger, was $38.9 million, or $.22 per share. Among those charges are $70.9 million for purchased intangible amortization and $28.9 million for business consolidation costs.

Life Technologies' R&D spending for the quarter was $81 million, down from $84.9 million for the condensed operations of the firms in the comparable period of 2008, while SG&A spending decreased to $250.6 million from $262.2 million.

The firm finished the quarter with $582.6 million in cash and short-term investments.

Life Technologies also said today that last week it had reduced its outstanding debt balance by paying $200 million of its senior secured term loan B, which has a remaining balance of around $800 million.

Following the Q2 results, the company also raised its expectations for full-year 2009. It now expects revenue growth in the second half to be in the mid-single digits. It also expects FY '09 non-GAAP EPS to be between $2.70 and $2.80, up from its previous forecast of between $2.40 and $2.55 per share.

In early Wednesday trade on the Nasdaq, Life Technologies' shares were up 8 percent at $46.24.

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