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Neogen Reports 33% Increase in Net Income
Date:1/4/2011

eta-lactam and tetracycline dairy antibiotics. Current fiscal year to date sales of the company's test for histamine, a natural toxin of special concern to the tuna industry, increased nearly 40%.

Second quarter sales of Neogen's Soleris® microbial detection system increased significantly led by a 33% increase in revenues for reader instruments. The Soleris system measures microbial growth by monitoring pH and other biochemical reactions that generate a color change as microorganisms grow and metabolize. The Food Safety division also saw a continuation in the quarter of strong increases in sales of the Acumedia dehydrated culture media that it offers to the cell culture market.

Neogen's second quarter also saw strong double-digit percentage increases in sales of its foodborne pathogen tests for Salmonella and Listeria. The company's recently introduced Reveal® 2.0 rapid pathogen detection tests were designed for accurate results, while simplifying testing protocols and enrichment procedures.  

Led by performance of the April 2010 acquisition of the GeneSeek genetics service business, Neogen's Animal Safety Division second quarter revenues increased 34% to $22,590,000, compared to $16,805,000 in the previous fiscal year. For FY 2011's first six months, the Animal Safety Division's sales increased 37% over the comparable period last year to $43,260,000.

GeneSeek, a leading commercial agricultural genetics laboratory, continued to exceed expectations in the second quarter with the sale of higher density DNA testing products, which are primarily used as discovery tools for breeding traits and disease susceptibility or resistance in cattle, pigs, and other species. GeneSeek also had an increase in sample volume for the lower density DNA testing products that are used more for breeding value predictions. Much of the increase came from growth with international customers in Canada, Australia, New Zealand, Brazil, an
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SOURCE Neogen Corporation
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