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Bio-Rad Q1 Revenues Rise 6 Percent, Beat Estimates

NEW YORK (GenomeWeb) – Bio-Rad Laboratories reported after the close of the market on Thursday that its first quarter revenues increased 6 percent, or nearly 7 percent on a currency-neutral basis.

For the three months ended March 31, the Hercules, California-based company recorded $500.1 million in revenues compared to $471.2 million in Q1 2016, beating analysts' average estimate of $477.8 million.

"We are encouraged by our overall performance in the first quarter, with many of our key products lines and regions posting solid growth," Norman Schwartz, president and CEO said in a statement. "Although our continued investments in our operations tempers our profitability in the short term, these investments will help us drive growth and improved profitability throughout the company in the years to come," he said.

Life science segment net sales increased 5 percent year over year to $174.3 million from $165.9 million. On a currency-neutral basis, Life Science sales increased 6 percent compared to the year-ago period. Growth in the segment was driven by sales of the firm's Droplet Digital PCR instruments and reagents, western blotting imagers, and PCR food testing products and were offset by a decline in process media product sales.

Clinical diagnostics sales in the quarter rose 7 percent to $322.3, from $301.7 million, growing 7 percent on a currency-neutral basis. These results reflected growth across immunology, quality control, and blood typing products, Bio-Rad said.

During the quarter Bio-Rad acquired RainDance Technologies and co-launched the Illumina Bio-Rad Single-Cell Sequencing System.

Bio-Rad's net income in Q1 was $12.4 million, or $.41 per share, compared to $12.3 million, or $.42 per share, in the same quarter last year and beating consensus estimates of $.30 per share.

The company said that the income results were due to lower margins, increased SG&A expenses — which rose to $194.9 million from $189.7 million — and costs associated with the establishment of a new European operating model, offset by an increase in contingent consideration benefit. R&D expenses rose slightly to $49.5 million from $48.6 million in the year-ago period.  

Bio-Rad finished the quarter with $291.7 million in cash and cash equivalents, and $387.0 million in short-term investments.

The company continues to anticipate currency-neutral revenue growth of 4 percent for 2017.

During Friday morning trading on the Nasdaq shares of Bio-Rad were down about 2 percent, to $218.86.