Revenues up 21%.....That's back on track....and we will get that bottom line back in a few weeks when we crush Vicam one more time in court....
Neogen Reports Record Quarterly Revenues
LANSING, Mich., March 24 /PRNewswire/ -- Neogen Corporation (Nasdaq:
NEOG - news) today announced the highest revenues for any quarter in the Company's 18-year history.
Neogen reported third quarter revenues of $6,275,000, an 18% jump from the previous year's $5,290,000.
Year-to-date, revenues for fiscal year 2000 stood at $17,050,000 at the end of the third quarter, as compared to
$16,925,000 at the same time last year.
``We are particularly pleased to report our best quarter ever for revenues, and the strong 18% increase in the
quarter-to-quarter comparison,' said James Herbert, Neogen's president. ``In fact, if you exclude revenues from the
human clinical business we sold in May 1999 the increase is in excess of 21%.'
Neogen's third quarter net income was $627,000, or $0.11 per share, as compared to the prior year's $589,000, or
$0.10 per share. The Company's net income for the first nine months of its current fiscal year is $1,773,000, or $0.30
per share. At the same time last year, Neogen's net income was $2,072,000, or $0.33 per share.
``Our increase in net income did not match revenue increases principally because of the continuation of heavy legal
expenses related to the Vicam litigation, which is expected to go to trial next week,' said Herbert. ``We are anxious to
conclude this matter and remain confident in our case.'
Not including revenues from Acumedia, which was acquired by Neogen in the third quarter, revenues from the
Company's Food Safety Division increased by more than 23% in the quarter as compared to last year, and its Animal
Safety Division saw an increase of 13%.
``Gross margins increased 18% compared to last year, very much in line with the increase in revenues,' said Lon
Bohannon, Neogen's chief operating officer. ``Sales in February were higher than any month in our history and,
combined with the new sales potential from our Acumedia acquisition, provide excellent growth momentum for
upcoming quarters.'
Neogen's February acquisition of Acumedia Manufacturers, Inc., an internationally-recognized manufacturer of culture
media, brings expectations for many synergistic contributions to the Company as a whole. Acumedia's assets include a
new facility near Baltimore, a strong management team, and a well-known and respected name in the culture media
marketplace. The acquisition united Neogen, a leader in the development and marketing of rapid test kits to detect
dangerous foodborne microorganisms, and Acumedia, a leader in the development and marketing of culture media,
including media used to grow microorganisms to detectable testing levels. More than 200 of Neogen's food safety
customers already used Acumedia products at the time of the acquisition.
The Company shipped all backorders of the equine botulism vaccine during the quarter, and is producing additional
quantities to fill current orders. Management is working closely with the USDA on better testing protocols to expedite
the approval of future lots of the vaccine, which are so important to horse owners world-wide.
Neogen's financial position remained strong, with cash and investments in excess of $8,000,000. This liquidity supports
the ability to readily close acquisitions and make open-market purchases of Company stock should market conditions
permit. In the third quarter, Neogen's Board of Directors expanded its share repurchase program from 500,000 to
750,000 shares. The Company has repurchased 471,000 shares since its repurchase program began.
Neogen Corporation develops and markets products and services dedicated to food and animal safety. The
Company's Food Safety Division markets diagnostic test kits to detect foodborne bacteria, natural toxins, food
allergens, drug residues, plant diseases and sanitation concerns. Neogen's Animal Safety Division markets a complete
line of veterinary instruments and a line of premium equine health care products.
NEOGEN CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS
For three months ended Feb. 29
2000 1999
Sales $6,275,000 $5,290,000
Net Income 627,000 589,000
Net Income Per Share
- Diluted $0.11 $0.10
Average Shares Outstanding 5,921,000 6,094,000
For nine months ended Feb. 29
2000 1999
Sales $17,050,000 $16,925,000
Net Income 1,773,000 2,072,000
Net Income Per Share
- Diluted $0.30 $0.33
Average Shares Outstanding 5,938,000 6,187,000
Certain portions of this news release that do not relate to historical financial information constitute forward-looking
statements. These forward- looking statements are subject to certain risks and uncertainties. Actual future results and
trends may differ materially from historical results or those expected depending on a variety of factors, including factors
listed in Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's
most recently filed Form 10-K.
SOURCE: Neogen Corporation |
