NEW YORK (GenomeWeb) – Meridian Bioscience reported today that its fiscal third quarter revenues rose 5 percent year over year, driven largely by its newly-acquired Magellan Diagnostics business.
For the three months ended June 30, Meridian posted net revenues of $50.7 million compared to $48.2 million in the year ago quarter, and missing analysts' consensus estimate of $52.9 million.
The Cincinnati, Ohio-based firm's diagnostics segment was up 4 percent, to $37.5 million from $36.0 million a year ago, however the core diagnostics business reported a decline in revenues that detracted from overall results, the company noted in statement. Modest decreases in Clostridium difficile test revenues as well as decreases in foodborne disease and other non-core product categories contributed to the weaker results, Meridian said. This was offset by $4.8 million in revenues from newly acquired Magellan, which reported 17 percent growth over the prior year.
Meridian's life science segment, meanwhile, grew 8 percent year over year to $13.1 million from $12.2 million, driven largely by sales of antigens and Zika virus biologicals, the company said.
"Our financial condition is sound and we continue to strive to achieve growth with strong operating leverage," said Chairman and CEO John Kraeutler in a statement. "We continue to seek complementary acquisitions that make maximum use of our core strengths and skills. We expect that our multiple growth opportunities will continue to offset weaknesses in non-focus areas of our business units."
During the quarter, Meridian received US Food and Drug Administration clearance of the illumigene Mycoplasma pneumonia assay for walking pneumonia, bringing the illumigene product line to 11 tests. The firm also launched an miRNA extraction tool called EPIK miRNA Select, and it has been supplying Zika virus biologicals for diagnostic test manufacturers and researchers.
Meridian reported a profit of $8.8 million, or $.21 per share, in fiscal Q3 down from $9.1 million, or $.22 per share, in the year-ago period. The company also missed the consensus Wall Street estimate for EPS of $.22.
The company's R&D expenses rose 9 percent to $3.5 million from $3.2 million, while its SG&A expenses jumped 46 percent to $15.6 million from $12.7 million.
The company finished the quarter with $45.8 million in cash and cash equivalents. It also declared a regular quarterly cash dividend of $.20 per share for Q3, payable August 18. The annual indicated dividend rate of $.80 per share remains the same as in 2015, the firm added.
Meridian also updated its guidance for 2016, and now expects net revenues to be in the range of $195 million to $200 million and EPS of between $.86 and $.90. Analysts on average expect revenues of $203.4 million and EPS of $.88.
The company's shares were down more than 2 percent to $19.98 in morning trading on the Nasdaq.