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Neogen Reports 25% Increase in Net Income, 13% Increase in Revenues
Date:9/27/2007

LANSING, Mich., Sept. 27 /PRNewswire-FirstCall/ -- Neogen Corporation (Nasdaq: NEOG) announced today that its net income for the first quarter of FY 2008, which ended Aug. 31, increased 25% from the previous year's first quarter to $3,011,000. Adjusted for a 3-for-2 stock split, net income per share was $0.21 in the first quarter, compared to $0.17 per share for the same period in the prior year.

First quarter revenues increased 13% from the prior year's $20,220,000 to $22,909,000 -- representing a record for revenues in any quarter for the 25-year-old company. The first quarter marked the 58th consecutive profitable quarter from operations for the company, and was the 62nd of the past 67 quarters when Neogen reported revenue increases as compared with the previous year.

"Our first quarter was a great start for our new fiscal year. We are proud to report that we have once again delivered on the trust that we have earned from our shareholders and customers," said James Herbert, Neogen's chief executive officer and chairman. "During the quarter we were able to increase sales in most product groups, indicating what we believe to be both market growth and growth in our share of the market. We expect this trend to continue."

The first quarter also saw Neogen continue its progress in controlling costs to help improve operating results. Neogen's operating income increased 27% in the first quarter of FY 2008 to $4,547,000. The company's gross margin as a percentage of sales increased to 53.7% in the current quarter, up from 51.0% in the prior year's comparable quarter.

"Cost-saving programs initiated in our prior fiscal year, and during this year's first quarter, contributed to our exceptional percenta
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SOURCE Neogen Corporation
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