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IDEXX Laboratories Announces Fourth Quarter and Full Year Results
Date:1/27/2012

lion compared to $19.2 million for the fourth quarter of 2010. Organic revenue growth of 4% was due primarily to higher Colilert® product sales volume driven by new account acquisitions. Changes in foreign currency exchange rates contributed less than 1% to revenue growth.

Livestock and Poultry Diagnostics. Livestock and Poultry Diagnostics ("LPD") revenues for the fourth quarter of 2011 were $24.1 million compared to $24.6 million for the fourth quarter of 2010. The 3% decline in organic revenue was due, in part, to lower sales of Bovine Spongiform Encephalopathy ("BSE" or "mad cow disease") tests resulting from changes in European Union BSE testing requirements. Effective July 1, 2011, the age at which healthy cattle to be slaughtered are required to be tested for BSE in the European Union was increased from 48 to 72 months, which is reducing the population of cattle tested for this disease. Changes in foreign currency exchange rates contributed 1% to revenue growth.

Additional Operating Results for the Fourth Quarter Gross profit for the fourth quarter of 2011 increased $14.1 million, or 10%, to $158.9 million from $144.8 million for the fourth quarter of 2010. As a percentage of total revenue, gross profit increased to 52% from 51%. The increase in the gross profit percentage was due primarily to higher relative sales of higher margin products and ongoing focus on cost reductions and product quality, resulting in decreased manufacturing, freight and distribution costs and improved instrument reliability. Fourth quarter gross profit percentage is typically lower than gross profit percentage for the full year due to higher relative sales of lower margin instruments in the fourth quarter.

Selling, general and administrative ("SG&A") expense for the fourth quarter of 2011 was $83.4 million, or 27% of revenue, compared to $76.5 million, or 27% of revenue, for the fourth quarter of 2010. The increase in SG&A expense resulted prima
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SOURCE IDEXX Laboratories, Inc.
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