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"Gen-Probe once again posted good financial results in the fourth quarterof 2007, led by the continued growth of our clinical diagnostics business,"said Henry L. Nordhoff, the Company's chairman and chief executive officer."In addition, our fourth quarter performance completed an excellent 2007 inwhich strong operating earnings and tax benefits combined to drive EPS up41%."
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In the fourth quarter of 2007, product sales were $92.4 million, comparedto $85.5 million in the prior year period, an increase of 8%. Total revenuesfor the fourth quarter of 2007 were $98.9 million, compared to $91.1 millionin the prior year period, an increase of 9%. Net income in the fourth quarterof 2007 was $20.4 million, compared to $17.1 million in the prior year period,an increase of 19%. EPS in the fourth quarter of 2007 were $0.37, compared to$0.32 in the prior year period, an increase of 16%. In this press release,all per share amounts are calculated on a fully diluted basis, and all resultsare presented in US GAAP.
For the full year 2007, product sales were $370.9 million, compared to$325.3 million in the prior year, an increase of 14%. Total revenues for 2007were $403.0 million, compared to $354.8 million in the prior year, an increaseof 14%. Net income for 2007 was $86.1 million, compared to $59.5 million inthe prior year, an increase of 45%. EPS in 2007 were $1.58, compared to $1.12in the prior year, an increase of 41%.
Gen-Probe's net income and EPS in the fourth quarter of 2007 benefitedfrom an income tax rate of approximately 22% that resulted primarily from thecompletion of an audit of the Company's 2003 and 2004 California state incometax returns and additional research and development credits earned in 2007.Net income and EPS for the full year 2007 benefited from an income tax rate ofapproximately 23% that resulted primarily from the items noted above and thecompletion of an audit of the Company's 2003 and 2004 federal income taxreturns (benefit recorded in the second quarter).
Detailed Results
Gen-Probe's clinical diagnostics sales in the fourth quarter of 2007 wereagain led by the APTIMA Combo 2(R) assay, an amplified nucleic acid test (NAT)for simultaneously detecting Chlamydia trachomatis (CT) and Neisseriagonorrhoeae (GC). Sales of this assay grew based on market share gains onboth the Company's semi-automated instrument platform and on thehigh-throughput, fully automated TIGRIS(R) system. Revenue from the PACE(R)product line, the Company's non-amplified tests for Chlamydia and gonorrhea,declined in the fourth quarter compared to the prior year period, in line withGen-Probe's expectations.
In blood screening, product sales in the fourth quarter of 2007 benefitedfrom continued international expansion, and from higher pricing associatedwith US commercial sales of the PROCLEIX(R) WNV (West Nile virus) assay on theTIGRIS system. Gen-Probe's blood screening sales in the fourth quarter of2007 were negatively affected by the timing of shipments. The Company's bloodscreening products are marketed worldwide by Chiron, a business unit ofNovartis Vaccines and Diagnostics.
Collaborative research revenues in the fourth quarter of 2007 were$5.4 million, compared to $1.2 million in the prior year period. Thisincrease resulted from several factors, including:
For the full year 2007, collaborative research revenues were$16.6 million, compared to $15.9 million in the prior year, an increase of 4%that resulted primarily from the factors described above. These increaseswere partially offset by the reclassification of revenue associated withinvestigational use of the PROCLEIX WNV assay. Beginnin
