Gen-Probe Reports Strong Financial Results for Third Quarter 2007, Raises Full-Year Guidance for Earnings Per Share and Tota... (eriod anincrease of 4%. General and a...)

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Gen-Probe Reports Strong Financial Results for Third Quarter 2007, Raises Full-Year Guidance for Earnings Per Share and Total Revenues

Date:10/30/2007

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General and administrative (G&A) expenses in the third quarter of 2007 were $11.4 million, compared to $12.7 million in the prior year period, a decrease of 10%. In the third quarter of 2006, the Company paid its outside litigation counsel $2.0 million in connection with the Company's successful settlement of the Bayer patent litigation. For the first nine months of 2007, G&A expenses were $34.7 million, compared to $34.1 million in the prior year period, an increase of 2%.

Gen-Probe continues to have a strong balance sheet. As of September 30, 2007, the Company had $395.1 million of cash, cash equivalents and short-term investments, and no debt. In the first nine months of 2007, Gen-Probe generated net cash of $71.2 million from its operating activities, higher than the Company's year-to-date net income of $65.7 million.

Updated 2007 Financial Guidance

"Based on our strong performance in the third quarter, we are raising our full-year 2007 revenue and EPS guidance," said Herm Rosenman, the Company's senior vice president of finance and chief financial officer.

For the full year 2007, Gen-Probe now expects:

-- Total revenues of $400 million to $402 million.

-- Product gross margins approximating 67% to 68% of product sales.

-- R&D expenses approximating 24% to 25% of total revenues.

-- Marketing and sales expenses approximating 9% to 10% of total

revenues.

-- G&A expenses approximating 11% to 12% of total revenues.

-- A reported tax rate of approximately 24.5%, including one-time

benefits associated with the completion of tax audits and adjustments.

-- EPS of between $1.50 and $1.52, based on approximately 54 million to

55 million fully diluted shares outstanding for the year.

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