Neogen Reports 34% Increase in Net Income, 23% Increase i...( LANSING Mich. Jan. 3 /- Neogen Co...)

LANSING, Mich., Jan. 3 /PRNewswire-FirstCall/ -- Neogen Corporation (Nasdaq: NEOG) announced today that its net income for the second quarter of FY 2008, which ended Nov. 30, increased 34% from the previous year's second quarter. Adjusted for a 3-for-2 stock split, net income in the quarter rose to $0.22 per share, compared to the prior year's $0.17. Neogen's second quarter net income of $3,254,000 set another quarterly record for the 25-year-old company.

Year-to-date net income for the first six months of Neogen's 2008 fiscal year increased 30% to $6,265,000 from $4,832,000 in FY 2007, or to $0.42 per share in the current year from the prior year's $0.34. Second quarter revenues increased 23% to $27,210,000, also a quarterly record, compared to the prior year's $22,189,000. Year-to-date revenues rose 18% during the fiscal year's first half to $50,118,000 from FY 2007's $42,409,000.

The second quarter was the 59th consecutive profitable quarter from operations for the company, and the 63rd quarter of the past 68 quarters to show increased revenues as compared with the previous year.

"Those who have followed Neogen closely know of our goal to achieve $100 million in annual sales this year, and I'm pleased to report that we are half way there after the first six months," said James Herbert, Neogen's chief executive officer and chairman. "The quarter's revenue contributes to our record of compound annual growth of 19% for the past 15 years."

Neogen's ongoing efforts to control costs, improve productivity, and the results of economies of scale were evident in the second quarter. Operating income as a percentage of sales increased to 17.6% in the current quarter from the previous year's comparable quarter of 16.7%.
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