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Financial Highlights
-- Revenue for the fiscal second quarter of 2009 was $73.0 million, up 18%from $61.9 million in the same period last year.
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-- Gross margin was 73.3% in the quarter, compared with 67.6% in the prioryear quarter.
-- Net income in the quarter was $17.3 million, up from $16.2 million forthe 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 itscommon stock at a total cost of $4.7 million under its stock repurchaseprogram.
"Our second quarter results demonstrate the strength of our business modelwith its strong recurring revenue and cash flow," stated Dr. Gioacchino DeChirico, President and Chief Executive Officer. "We have what I believe to bethe leading technology for automating the blood bank, which positions us wellas the market moves towards automation."
Six-Month Results
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 $0.52per fully diluted share, compared with $33.9 million, or $0.48 per fullydiluted share in the prior year period. Cash flow from operations was $32.3million for the first six months of fiscal 2009, compared with $26.6 millionfor the first six months of fiscal 2008.
Consolidated revenue increased approximately $11.1 million, or 18%, overthe second quarter of fiscal 2008, driven by both price and instrument volumeincreases 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 totalconsolidated revenue increase. Revenue in the quarter was negatively impactedby approximately $1.1 million from foreign currency translation as comparedwith the second quarter of fiscal 2008.
The year-over-year improvement in consolidated gross margins was driven byprice increases in the U.S. as well as instrument product mix with fewer salesthat required the instrument to be expensed at time of sale.
Operating Expenses
Operating expenses for the second quarter increased approximately $7.2million, or 39%, over the prior year quarter primarily attributable to theBioArray acquisition as well as investments being made in the French and theUnited Kingdom markets to sell our products directly to the end user.
(3) Cumulative Orders - total orders received since the launch of theinstrument.
"On a year-to-date basis, we have received 176 Echo orders, whichdemonstrates the tremendous market acceptance of our instrument," stated Dr.De Chirico. "Of the cumulative 430 Echo orders, approximately 193 weregenerating reagent revenue, which is an increase of 64 instruments in thequarter."
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'sprevious estimate. Gross margin is now expected to be in the range of 71.0% to73.0%, compared with the Company's previous guidance of 70.0% to 71.0%. Fullydiluted 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 economicenvironment because of our strong product offering as well as our strongbalance sheet and cash flow," stated Dr. De Chirico. "I am pleased with ourprojected performance for the remainder of fiscal 2009."
Conference Call
Immucor, Inc. will host a conference call Thursday, January 8, 2009 at8:30 AM (Eastern Time) to review these results. Investors are invited toparticipate in this conference call with Dr. Gioacchino De Chirico, Presidentand Chief Executive Officer; Richard A. Flynt, Chief Financial Officer; andEdward 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 weekbeginning at 12:00 PM on January 8, 2009 by calling 1-866-457-5510, passcode2468. The Company will also provide a live audio broadcast of the call viawebcast. The webcast can be accessed at www.immucor.com in the "About Us -Investor Information" section by selecting the webcast link. For those unableto listen to the live broadcast of the call, a replay will be availableshortly after completion of the call and will be archived on Immucor's websitefor approximately 60 days.
About Immucor
Founded in 1982, Immucor manufactures and sells a complete line ofreagents and systems used by hospitals, reference laboratories and donorcenters to detect and identify certain properties of the cell and serumcomponents of blood prior to transfusion. Immucor markets a complete family ofautomated instrumentation for all of its market segments.
For more information on Immucor, please visit our website atwww.immucor.com .
Safe Harbor Statement
Statements contained in this press release that are not statements ofhistorical fact are "forward-looking statements" as that term is defined underfederal securities laws. Forward-looking statements contained in this pressrelease include the intent, belief or current expectations of the Company andmembers of its management team with respect to the Company's future businessoperations 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 shareprojections. Prospective investors are cautioned that any such forward-lookingstatements are not guarantees of future performance, and involve risks anduncertainties, and that actual results may differ materially from thosecontemplated by such forward-looking statements. In addition, results for onefiscal quarter are not necessarily indicative of results for any futureperiod. Factors that could cause actual results to differ materially fromthose expressed in any forward-looking statement include, but are not limitedto: lower than expected demand for the Company's instruments; the decision ofcustomers to defer capital spending; the unexpected change in the mix ofinstruments being purchased instead of acquired through other means, whichcould significantly increase costs; the inability of customers to efficientlyintegrate our instruments into their blood banking operations; increasedcompetition in the sale of instruments and reagents, particularly in NorthAmerica; unanticipated operational problems that result in non-compliance withFDA regulations; the failure to effectively integrate BioArray operations intothe Company's overall operations; the unexpected loss of any key managers;changes in interest rates; the strengthening of the U.S. Dollar versus any ofthe functional currencies in which the Company operates and its adverse impacton reported results; the inability of the Company's Japanese, French andUnited Kingdom subsidiaries to attain expected revenue, gross margin and netincome levels; the outcome of any legal claims or regulatory investigationsknown or unknown, including the ongoing FTC investigation; lower than expectedmarket acceptance of the molecular diagnostic products produced by BioArray;the unexpected application of different accounting rules; general economicconditions; and adverse developments with respect to the operation orperformance of the Company, its products and its affiliates or the marketprice of its common stock. Additional factors that could cause actual resultsto differ materially from those contemplated within this Press Release can befound in the Company's Risk Factor disclosures in its Form 10-K for the yearended 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.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 %
SOURCE Immucor, Inc.
