NORCROSS, Ga., Jan. 7 /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 second quarter ended November 30, 2008.
-- Revenue for the fiscal second quarter of 2009 was $73.0 million, up 18% from $61.9 million in the same period last year.
-- Gross margin was 73.3% in the quarter, compared with 67.6% in the prior year quarter.
-- Net income in the quarter was $17.3 million, up from $16.2 million for the same quarter last year.
-- Diluted earnings per share totaled $0.24 in the quarter, compared with $0.23 for the same period last year.
-- During the quarter, the Company repurchased 200,000 shares of its common stock at a total cost of $4.7 million under its stock repurchase program.
"Our second quarter results demonstrate the strength of our business model with its strong recurring revenue and cash flow," stated Dr. Gioacchino De Chirico, President and Chief Executive Officer. "We have what I believe to be the leading technology for automating the blood bank, which positions us well as the market moves towards automation."
For the first six months of fiscal 2009, revenue was $146.2 million, compared with $125.6 million in the prior year period. Gross margin was 73.2%, up from 69.9% in the prior year period. Net income was $37.3 million, or $0.52 per fully diluted share, compared with $33.9 million, or $0.48 per fully diluted share in the prior year period. Cash flow from operations was $32.3 million for the first six months of fiscal 2009, compared with $26.6 million for the first six months of fiscal 2008.
Revenue and Gross Margin by Product ($ amounts in thousands) Revenue Fiscal Q2 2009 Fiscal Q2 2008 Variance Gross Gross Revenue Margin Revenue Margin $ % Traditional reagents $47,229 80.8 % $43,024 74.7 % $4,205 10 % Capture reagents 16,524 84.6 % 12,239 84.4 % 4,285 35 % Instruments 8,609 13.0 % 6,471 (7.8)% 2,138 33 % Molecular immunohematology 659 43.1 % - - 659 100 % Collagen - - 190 (57.4)% (190) (100)% Consolidated revenue $73,021 73.3 % $61,924 67.6 % $11,097 18 %
Consolidated revenue increased approximately $11.1 million, or 18%, over the second quarter of fiscal 2008, driven by both price and instrument volume increases in the United States as well as increased sales outside of the U.S. U.S. price increases accounted for approximately two-thirds of the total consolidated revenue increase. Revenue in the quarter was negatively impacted by approximately $1.1 million from foreign currency translation as compared with the second quarter of fiscal 2008.
The year-over-year improvement in consolidated gross margins was driven by price increases in the U.S. as well as instrument product mix with fewer sales that required the instrument to be expensed at time of sale.
Operating expenses for the second quarter increased approximately $7.2 million, or 39%, over the prior year quarter primarily attributable to the BioArray acquisition as well as investments being made in the French and the United Kingdom markets to sell our products directly to the end user.
Summary of Instrument Orders Q2 2009 Orders Cumulative Instrument N.A.(1) ROW(2) Total Orders(3) Echo 31 21 52 430 Galileo 1 15 16 602 (1) N.A. - North America (the U.S. and Canada) (2) ROW - all parts of the world other than North America.
(3) Cumulative Orders - total orders received since the launch of the instrument.
"On a year-to-date basis, we have received 176 Echo orders, which demonstrates the tremendous market acceptance of our instrument," stated Dr. De Chirico. "Of the cumulative 430 Echo orders, approximately 193 were generating reagent revenue, which is an increase of 64 instruments in the quarter."
Raising 2009 EPS Guidance
The Company continues to expect revenue for the fiscal year ending May 31, 2009, to range from $292 million to $300 million, unchanged from the Company's previous estimate. Gross margin is now expected to be in the range of 71.0% to 73.0%, compared with the Company's previous guidance of 70.0% to 71.0%. Fully diluted earnings per share are now expected to be in the range of $0.97 to $1.02 for the fiscal year, compared with the Company's previous estimate of $0.94 to $0.98.
"In summary, our business is doing well in this troubled economic environment because of our strong product offering as well as our strong balance sheet and cash flow," stated Dr. De Chirico. "I am pleased with our projected performance for the remainder of fiscal 2009."
Immucor, Inc. will host a conference call Thursday, January 8, 2009 at 8:30 AM (Eastern Time) to review these results. Investors are invited to participate in this conference call with Dr. Gioacchino De Chirico, President and Chief Executive Officer; Richard A. Flynt, Chief Financial Officer; and Edward L. Gallup, consultant.
To participate in the telephone conference call, dial 1-888-324-7567, passcode BLUD. A replay of the conference call will be available for one week beginning at 12:00 PM on January 8, 2009 by calling 1-866-457-5510, passcode 2468. 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.
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
Statements contained in this press release that are not statements of historical fact 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 2009 revenue, gross margin and fully diluted earnings per share projections. 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: 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 increase costs; the inability of customers to efficiently integrate our 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; the unexpected loss of any key managers; changes in interest 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 FTC investigation; lower than expected market acceptance of the molecular diagnostic products produced by BioArray; 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, 2008, and its Form 10-Q for the quarter ended August 31, 2008. 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 Six Months Ended November 30, November 30, November 30, November 30, 2008 2007 2008 2007 NET SALES $ 73,021 $ 61,924 $ 146,197 $ 125,556 COST OF SALES 19,463 20,050 39,214 37,802 GROSS PROFIT 53,558 41,874 106,983 87,754 OPERATING EXPENSES Research and development 2,896 1,434 4,777 3,489 Selling and marketing 10,713 7,844 20,182 15,413 Distribution 3,549 2,646 7,017 5,330 General and administrative 7,467 6,278 14,925 12,158 Restructuring expense - 192 - 723 Amortization expense and other 1,071 87 1,596 173 Total operating expenses 25,696 18,481 48,497 37,286 INCOME FROM OPERATIONS 27,862 23,393 58,486 50,468 NON-OPERATING INCOME (EXPENSE) Interest income 586 1,131 1,380 2,244 Interest expense (77) (86) (203) (181) Other, net (1,230) 268 (1,650) 87 Total non-operating (expense) income (721) 1,313 (473) 2,150 INCOME BEFORE INCOME TAXES 27,141 24,706 58,013 52,618 PROVISION FOR INCOME TAXES 9,803 8,542 20,718 18,704 NET INCOME $ 17,338 $ 16,164 $ 37,295 $ 33,914 Earnings per share: Per common share - basic $0.25 $0.23 $0.53 $0.49 Per common share - diluted $0.24 $0.23 $0.52 $0.48 Weighted average shares outstanding: Basic 70,409 69,954 70,338 69,693 Diluted 71,227 71,111 71,219 71,094 IMMUCOR, INC. SELECTED CONDENSED CONSOLIDATED BALANCE SHEET ITEMS (Unaudited, in thousands) November 30, May 31, 2008 2008 Cash $92,302 $175,056 Accounts receivable - trade 55,817 52,720 Inventory 34,528 32,228 Total current assets 192,515 271,575 Property and equipment - net 38,154 36,426 Total assets 395,463 364,950 Accounts payable 8,182 7,546 Total current liabilities 43,504 41,019 Other liabilities 16,151 16,235 Shareholders' equity 335,808 307,696 IMMUCOR, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) Six Months Ended November 30, November 30, 2008 2007 OPERATING ACTIVITIES: Net income $ 37,295 $ 33,914 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,313 4,063 Share-based compensation expense 2,478 2,032 Deferred income taxes 850 (3,031) Excess tax benefit from share-based compensation (2,880) (6,279) Other 579 347 Changes in operating assets and liabilities, net of effects from acquired companies (12,327) (4,436) Cash provided by operating activities 32,308 26,610 INVESTING ACTIVITIES: Purchases of property and equipment (3,602) (5,711) Acquisition of businesses, net of cash acquired (108,537) - Cash used in investing activities (112,139) (5,711) FINANCING ACTIVITIES: Repayments of long-term debt and liabilities (229) (233) Repurchase of common stock (5,644) (5,539) Proceeds from exercise of stock options 2,452 1,794 Excess tax benefit from share-based compensation 2,880 6,279 Cash (used in) provided by financing activities (541) 2,301 EFFECT OF EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (2,382) 1,027 (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (82,754) 24,227 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 175,056 113,551 CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 92,302 $ 137,778
|SOURCE Immucor, Inc.|
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