Bio-Rad Laboratories, a manufacturer and distributor of life science research products and clinical diagnostics, announced financial results for fourth quarter and fiscal year ended 31 December 2005
Net revenues from continuing operations were US$307.3 million for the fourth quarter, essentially flat versus the prior-year quarter.
On a currency-neutral basis, however, revenues were up 2.9% over the same period last year.
During the quarter, the life science segment experienced a reduction in revenue as well as higher incremental expenses as it absorbed the impact of the injunction by a Connecticut Federal District Court stopping all sales and manufacturing in the United States of the company's MJ Research line of thermal cycling products.
For the quarter, income from continuing operations was $13.5 million compared to $17.1 million in the fourth quarter of last year.
Quarterly net income was negatively impacted by a one-time, non-cash charge of $19.8 million of pre-tax impairment expenses primarily due to the write-down of intangible assets associated with the acquisition of MJ Research.
These negatives were partially offset by fourth-quarter pre-tax gains of approximately $11 million associated with the liquidation of positions in Instrumentation Laboratory and BioSource International.
For the full year, company sales from continuing operations grew by 8.3% to $1,181.0 million compared to $1090.0 million in 2004.
Normalising for the impact of currency effects, growth was 7.3%.
This growth was largely due to organic growth in Bio-Rad's two main business segments.
Year-over-year income from continuing operations grew by 17.0% to $77.6 million, or $2.98 per share, from $66.3 million, or $2.58 per share in 2004.
Full-year gross margin from continuing operations was 54.7%, down from last year's figure of 56.0%.
The decline in gross margin was largely attributable to sales mix coupled with price erosion in BSE (bovine spongiform encephalopathy or mad cow disease) business.
