Bio-Rad Laboratories, a manufacturer and distributor of life science research products and clinical diagnostics, announced financial results for the first quarter ended 31 March 2006
First-quarter revenues from continuing operations were $308.3 million, up 3.0% compared to the $299.2 million reported for the first quarter of 2005.
On a currency-neutral basis, revenues increased 8.3% compared to the first quarter of 2005.
This sales increase was the result of organic growth across a broad array of product areas.
For the quarter, income from continuing operations was $31.2 million compared to $29.5 million in the same period last year.
At 56.9%, first-quarter gross margin from continuing operations was markedly higher than the 55.6% reported for the first quarter of 2005.
The higher margin was due to a combination of improved efficiencies and certain non-recurring items.
First-quarter basic earnings from continuing operations were $1.19 per share, or $1.16 per share on a diluted basis, compared to $1.14 and $1.11, respectively, in the same period of last year.
Life Science segment net sales from continuing operations for the quarter were $144.8 million, up slightly from the $144.1 million reported last year.
Normalizing for the impact of currency effects, sales in this area increased by 5.6%.
The Clinical Diagnostics segment reported solid growth in its core businesses with net sales of $160.3 million, a 5.5% increase over the comparable period last year.
On a currency-neutral basis, segment sales increased 10.9% over the first quarter of 2005.
In February, the company reached a settlement agreement with Applera and Roche, enabling the company to resume US sales of certain MJ Research thermal cycling products.
Early in the quarter, Bio-Rad announced that it renewed a collaboration agreement with the Institut Pasteur of Paris for an additional four years.
This relationship gives Bio-Rad exclusive commercialization rights to Pasteur's developments in the areas of virology, microbiology, physiology, biochemistry, parasitology and mycology.
Life Science segment net sales for the quarter were $144.8 million, up 0.5% compared to the first quarter of last year.
On a currency-neutral basis, sales increased by 5.6%.
Performance in this segment was the result of a combination of factors including sales increases in the amplification reagents and instrumentation, automated electrophoresis and process chromatography product areas.
In particular, the segment benefited from a resumption of US sales of certain thermal cycling products as well as from continued penetration into the bio-pharmaceutical drug separation market with products such as Bio-Rad's Macro-Prep support used in the purification of inhalable insulin.
Segment performance was somewhat tempered, however, by a reduction in BSE testing revenue.
The Clinical Diagnostics segment reported net sales of $160.3 million for the quarter, up 5.5% compared to the prior-year quarter, or 10.9% excluding currency effects.
These results are due in part to continued growth in the blood typing, blood virus screening, autoimmune testing and diabetes monitoring product lines.
Following the placement of a substantial number of systems last year, reagent sales associated with the Company's Evolis automated microplate processors were up dramatically for the quarter.
In addition, sales to low- and mid-volume customers in the diabetes monitoring market benefited from the March release of the company's new Rack Loader for use in conjunction with the D-10 hemoglobin testing system, expanding the sample handling capacity of the system to 50 samples.
These benefits were partially offset, however, by increased competition in the high-volume segment of the market.
"The year is getting off to an excellent start, with sales in most regions meeting or exceeding expectations," said Norman Schwartz, president and chief executive officer.
"As the year unfolds, we will continue to work on a number of projects aimed at growing our core businesses and improving operational efficiency over the longer term."
