NORCROSS, Ga., July 23 /PRNewswire-FirstCall/ -- Immucor, Inc. (Nasdaq: BLUD), a global leader in providing automated instrument-reagent systems to the blood transfusion industry, today reported financial results for the fiscal fourth quarter ended May 31, 2009.
Fourth Quarter Financial Highlights
Full Year Results
"For fiscal 2009, we achieved record revenue, earnings and cash flow from operations," stated Dr. Gioacchino De Chirico, Immucor's President and Chief Executive Officer. "Our growth has been driven by the success of our automation strategy combined with the fact that our reagent product offering is necessary to ensure the safety of transfusions."
Selected Product Revenue and Gross Margin ($ amounts in thousands) Revenue Fiscal Q4 2009 Fiscal Q4 2008 Growth Gross Gross Revenue Margin Revenue Margin $ % Traditional reagents $52,149 75.3% $45,274 77.4% $6,875 15% Capture reagents 17,057 84.1% 15,027 86.5% 2,030 14% Instruments 9,058 18.0% 8,312 16.0% 746 9%
Consolidated revenue was $79.0 million in the current year quarter, an increase of approximately $10.4 million, or 15%, over the fourth quarter of fiscal 2008. Revenue in the quarter benefited from both price and volume contributions. Revenue in the quarter was negatively impacted by approximately $3.0 million from foreign currency translation as compared with the fourth quarter of fiscal 2008.
Consolidated gross margin was $55.2 million, or 69.9% of revenue, in the current year quarter compared with $49.4 million, or 72.0% of revenue, in the prior year quarter. During the current year quarter, gross margin was negatively impacted by costs related to the Company's Quality Process Improvement Project, which focuses on improving the quality department's processes and procedures.
"Our Quality Process Improvement Project is progressing well and we continue to target a project completion date by the end of our third fiscal quarter of 2010," stated Dr. De Chirico. "We are confident that our efforts will produce a world-class quality system that will be the foundation for the future."
Operating expenses for the fourth quarter increased approximately $4.9 million, or 23%, over the prior year quarter primarily attributable to the BioArray acquisition as well as the Company's initiative to sell its products directly to the end user in the French and United Kingdom markets.
Summary of Instrument Orders Q4 2009 Orders Cumulative Instrument N.A. (1) ROW(2) Total Orders (3) Echo 65 20 85 603 Galileo 1 9 10 637 (1) N.A. - North America (the U.S. and Canada) (2) ROW - all parts of the world other than the U.S. and Canada (3) Cumulative Orders - total orders received since the launch of the instrument
For fiscal 2009, the Company received 349 Echo orders and 63 Galileo orders. Of the cumulative orders since the instruments' launch, approximately 360 Echo orders and 596 Galileo orders were generating reagent revenue at their expected annualized run rate as of May 31, 2009, an increase of 91 Echo instruments and 23 Galileo instruments in the fiscal fourth quarter.
"The market's acceptance of our Echo instrument, which is targeted at the small- to medium-sized hospital segment, has been remarkable. In the first 2 years since launch, we achieved more than 600 orders, which represents approximately 10% of our estimated addressable worldwide market," stated Dr. De Chirico.
"We expect to launch our next generation Galileo instrument, the Galileo Neo(TM), in early 2010. Targeted at high volume customers, the Galileo Neo is our fourth generation automated instrument," stated Dr. De Chirico. "We have the newest instrumentation on the market and believe that both Immucor and our customers benefit from our automation strategy."
Fiscal 2010 Guidance
The Company continues to expect fiscal 2010 consolidated revenue in the range of $322 million to $332 million and consolidated gross margins in the range of 70.0% to 71.5%. The Company's Quality Process Improvement Project is included in cost of goods sold. The Company continues to expect expenses related to the project in fiscal 2010 to be in the range of $4.0 million to $4.5 million.
The Company continues to expect diluted earnings per share to be in the range of $1.10 to $1.17 for fiscal 2010, which includes the approximately $0.04 per share impact, net of tax, related to the Quality Process Improvement Project. The Company's fiscal 2010 guidance also includes a full year of BioArray expenses. BioArray was acquired on August 4, 2008.
"We believe in our opportunities for long-term sustainable growth and will continue to focus on the business to produce results that provide returns for both our customers and our shareholders," stated Dr. De Chirico.
Immucor, Inc. will host a conference call Friday, July 24, 2009 at 8:30 AM (Eastern Time) to review these results. To participate in the telephone conference call, dial 1-888-324-9321 (Passcode: BLUD). The Company will also provide a live audio broadcast of the call via webcast. The webcast can be accessed at www.immucor.com in the "About Us - Investor Information" section by selecting the webcast link. For those unable to listen to the live broadcast of the call, a replay will be available shortly after completion of the call and will be archived on Immucor's website for approximately 60 days. Additionally, a replay of the call will be available for one week beginning at noon on July 24, 2009 by calling 1-866-453-1998 (Passcode: 2583).
Founded in 1982, Immucor manufactures and sells a complete line of reagents and systems used by hospitals, reference laboratories and donor centers to detect and identify certain properties of the cell and serum components of blood prior to transfusion. Immucor markets a complete family of automated instrumentation for all of its market segments. For more information on Immucor, please visit our website at www.immucor.com.
Safe Harbor Statement
This press release contains statements that are "forward-looking statements" as that term is defined under federal securities laws. Forward-looking statements contained in this press release include the intent, belief or current expectations of the Company and members of its management team with respect to the Company's future business operations as well as the assumptions upon which such statements are based. Forward-looking statements include specifically, but are not limited to: fiscal 2010 revenue projections, gross margin projections, fully diluted earnings per share projections and Quality Process Improvement Project projections, including projected expenses and completion date. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. In addition, results for one fiscal quarter are not necessarily indicative of results for any future period. Factors that could cause actual results to differ materially from those expressed in any forward-looking statement include, but are not limited to: the outcome and costs associated with the Company's Quality Process Improvement Project; the outcome of the administrative action ("notice of intent to revoke our biological license") received by the FDA; customer reaction to the FDA action and the subsequent impact on the business; lower than expected demand for the Company's instruments; the decision of customers to defer capital spending; the unexpected change in the mix of instruments being purchased instead of acquired through other means, which could significantly change costs recognized in the period; the inability of customers to efficiently integrate the Company's instruments into their blood banking operations; increased competition in the sale of instruments and reagents, particularly in North America; unanticipated operational problems that result in non-compliance with FDA regulations; the failure to effectively integrate BioArray operations into the Company's overall operations; product development obstacles including obstacles related to the Galileo Neo as well as the next generation automated instrument for the molecular immunohematology products; regulatory obstacles including obstacles in securing regulatory approval of the BioArray technology; the inability to hire and retain, and the unexpected loss of key managers; changes in interest rates; fluctuations in foreign currency conversion rates; the strengthening of the U.S. Dollar versus any of the functional currencies in which the Company operates and its adverse impact on reported results; the inability of the Company's Japanese, French and United Kingdom subsidiaries to attain expected revenue, gross margin and net income levels; the outcome of any legal claims or regulatory investigations known or unknown, including the ongoing investigations by the Department of Justice and Federal Trade Commission, and related customer class action lawsuits; the Company's inability to protect its intellectual property or its infringement of the intellectual property of others; lower than expected market acceptance of the molecular immunohematology products; the unexpected application of different accounting rules; general economic conditions; and adverse developments with respect to the operation or performance of the Company, its products and its affiliates or the market price of its common stock. Additional factors that could cause actual results to differ materially from those contemplated within this Press Release can be found in the Company's Risk Factor disclosures in its Form 10-K for the year ended May 31, 2009. Immucor assumes no obligation to update any forward-looking statements.
IMMUCOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands except per share data) Three Months Ended Year Ended May 31, May 31, May 31, May 31, 2009 2008 2009 2008 NET SALES $79,041 $68,614 $300,547 $261,199 COST OF SALES 23,802 19,221 84,536 75,710 GROSS PROFIT 55,239 49,393 216,011 185,489 OPERATING EXPENSES Research and development 3,144 1,443 10,698 6,454 Selling and marketing 9,654 9,951 39,191 32,970 Distribution 3,383 3,183 13,708 11,394 General and administrative 8,813 6,540 31,717 25,925 Restructuring expense - - - 646 Amortization expense and other 1,072 96 3,739 357 Total operating expenses 26,066 21,213 99,053 77,746 INCOME FROM OPERATIONS 29,173 28,180 116,958 107,743 NON-OPERATING INCOME (EXPENSE) Interest income 149 759 1,957 4,263 Interest expense (5) (79) (250) (371) Other, net 281 (39) (1,684) 33 Total non-operating income (expense) 425 641 23 3,925 INCOME BEFORE INCOME TAXES 29,598 28,821 116,981 111,668 PROVISION FOR INCOME TAXES 10,166 10,547 40,798 40,214 NET INCOME $19,432 $18,274 $76,183 $71,454 Earnings per share: Per common share - basic $0.28 $0.26 $1.08 $1.02 Per common share - diluted $0.27 $0.26 $1.07 $1.00 Weighted average shares outstanding: Basic 70,447 70,090 70,382 69,867 Diluted 71,055 71,119 71,168 71,109
IMMUCOR, INC. SELECTED CONDENSED CONSOLIDATED BALANCE SHEET ITEMS (Unaudited, in thousands) May 31, May 31, 2009 2008 Cash $136,461 $175,056 Accounts receivable - trade 57,017 52,720 Inventory 38,256 32,228 Total current assets 244,850 271,575 Property and equipment - net 43,461 36,426 Total assets 451,340 364,950 Accounts payable 9,344 7,546 Deferred revenue, current portion 11,222 11,146 Total current liabilities 52,288 41,019 Deferred revenue, long-term portion 10,871 13,010 Other liabilities 3,603 3,225 Shareholders' equity 384,578 307,696
IMMUCOR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) Years Ended May 31, May 31, 2009 2008 OPERATING ACTIVITIES: Net income $ 76,183 $ 71,454 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 13,306 8,376 Share-based compensation expense 5,904 3,678 Deferred income taxes 5 (1,751) Excess tax benefit from share-based compensation (3,253) (7,539) Other 1,200 (804) Changes in operating assets and liabilities, net of effects from acquired companies (13,523) 1,691 Cash provided by operating activities 79,822 75,105 INVESTING ACTIVITIES: Purchases of property and equipment (8,602) (11,573) Acquisition of businesses, net of cash acquired (107,954) - Other - (4,120) Cash used in investing activities (116,556) (15,693) FINANCING ACTIVITIES: Repayments of long-term debt and liabilities (206) (4,652) Repurchase of common stock (7,621) (5,549) Proceeds from exercise of stock options 3,178 2,734 Excess tax benefit from share-based compensation 3,253 7,539 Cash (used in) provided by financing activities (1,396) 72 EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (465) 2,021 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (38,595) 61,505 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 175,056 113,551 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 136,461 $ 175,056
|SOURCE Immucor, Inc.|
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