WALTHAM, Mass., Oct. 31 Inverness MedicalInnovations, Inc. (Amex: IMA), a global leader in rapid point-of-carediagnostic products, today announced its financial results for the quarterended September 30, 2007.
In the third quarter of 2007, the Company recorded net revenue of $237.6million compared to net revenue of $144.9 million in the third quarter of2006. The revenue increase was primarily due to increased sales in ourProfessional Diagnostic segment contributed by businesses acquired, whichcontributed $94.3 million of the increased product revenue, offset by adecrease of $17.1 million in revenue as compared to the prior year's quarteras a result of our second quarter of 2007 formation of a joint venture for ourConsumer Diagnostics business with the Procter & Gamble Company.
For the third quarter of 2007, the net loss prepared in accordance withaccounting principles generally accepted in the United States of America("GAAP") was $180.6 million, or $3.74 per diluted common share, compared tonet loss of $9.7 million, or $0.27 per common share, for the third quarter of2006. The Company reported adjusted cash basis net income of $14.9 million, or$0.29 per diluted common share, for the third quarter of 2007, compared toadjusted cash basis net income of $5.7 million, or $0.15 per diluted commonshare, for the third quarter of 2006.
The Company's GAAP results for the third quarter of 2007 includeamortization of $19.9 million, the write-off of $169.0 million of in-processresearch and development acquired in connection with the Biosite acquisition,$0.5 million of restructuring charges, $3.3 million of stock-basedcompensation expense, and a $6.3 million charge related to the write-up tofair market value of inventory acquired in connection with the Biosite andCholestech acquisitions. GAAP results for the third quarter of 2006 includeamortization of $6.4 million, the write-off of $5.0 million of in-processresearch and development acquired in connection with the Clondiag acquisition,a $1.2 million restructuring charge, $1.3 million of non-cash stock-basedcompensation expense and $1.3 million of prepayment penalties and a write-offof debt origination costs upon early extinguishment of related debt. Theseamounts, net of tax, have been excluded from the adjusted cash basis netincome per common share for the respective quarters.
A detailed reconciliation of the Company's adjusted cash basis net income,which is a non-GAAP financial measure, to net loss under GAAP, as well as adiscussion regarding this non-GAAP financial measure, is included in theschedules to this press release.
The Company will host a conference call beginning at 10:00 a.m. (EasternTime) today, October 31, 2007, to discuss these results as well as othercorporate matters. During the conference call, the Company may answerquestions concerning business and financial developments and trends and otherbusiness and financial matters. The Company's responses to these questions,as well as other matters discussed during the conference call, may contain orconstitute information that has not been previously disclosed.
The conference call can be accessed by dialing 973-582-2700 (domestic andinternational), an access code is not required, or via a link on the Invernesswebsite at www.invernessmedical.com. It is also available via link athttp://orion.calleci.com/servlet/estreamgetevent?id=8129&folder=webstreamusing Real Player or via link athttp://orion.calleci.com/servlet/estreamgetevent?id=8128&folder=webstreamusing Windows Media. A telephone replay of the call will be available bydialing 973-341-3080 (domestic and international) with an access code of9393875. That replay will be available until 12:00 midnight (Eastern Time) onNovember 3, 2007. An on-demand webcast of the call will be available at theInverness website (www.invernessmedical.com/News.cfm) two hours after the e