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
-- 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.
-- John C. Martin Elected to Board of Directors. On September 20,
Gen-Probe announced that John C. Martin, Ph.D., pre
|SOURCE Gen-Probe Incorporated|
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