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ABI's Sales Grow 15 Percent in Fiscal Q1 as Profit Turns to Loss on Agencourt Buy; Sequencing Up 5 Percent

NEW YORK (GenomeWeb News) —Applied Biosystems today said fiscal first quarter revenues increased 15 percent as profit turned to a loss.
For the three months ended Sept. 30 total sales increased to $476.3 million from $415.5 million last year
ABI said that sequencing revenue increased 5.2 percent to $131.5 million from $124.9 million in the year ago period; RT-PCR sales increased 30 percent to $158.1 million; mass spec sales increase 19 percent in the period to $116 million; core PCR and DNA synthesis declined 3 percent to $46.2 million; and “other” products increased 1 percent to $24.5 million.
Research and development spending increased to $45.1 million from $40.9 million year over year.     
The company posted a $58.7 million loss in the period compared to $43.1 million profit one year ago. ABI attributed the loss to a $115 million charge paid out related to the acquisition of Agencourt Personal Genomics and the settlement of a legal dispute.
As GenomeWeb News reported earlier this week, ABI President Cathy Burzik stepped down to become CEO of a medical devices company. Tony White took over as interim president as the company looks for a successor.  
ABI did not disclose its cash holdings.
Looking ahead, ABI said it expects to see “mid to high single digit revenue growth” for fiscal 2007. This outlook includes the full fiscal year impact from the March 2006 acquisition of Ambion and the impact of currency, ABI said.
ABI also said it expects revenue from its RT-PCR/applied genomics and mass spec product lines to grow, and receipts from core PCR and DNA synthesis and other product lines to decline.
Revenues in the DNA sequencing segment are expected to remain flat with fiscal 2006.

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