more "genomics trickle down", with a forward looking statement.......
(I love this company)
Tuesday July 25, 6:46 pm Eastern Time
Company Press Release
SOURCE: TECAN
TECAN Reports Record Performance in the First
Half 2000
Sales increase by 43%, operating profit by 50% Strong sales
contribution from Genomics and Functional Genomics
HOMBRECHTIKON/ZURICH, Switzerland, July 25 /PRNewswire/ -- TECAN, the leading global provider of laboratory
automation systems for the life sciences industry, today reported worldwide sales of CHF 124.0 million (US $75.2 million) for
the first half of 2000, compared with CHF 86.4 million (US $52.4 million) in the same period in 1999, an increase of 43.4%. In
local currencies, sales increased by 33%. Operating profit increased by 50.4% to CHF 25.1 million (US $15.2 million) from
CHF 16.7 million (US $10.1 million) one year earlier (1999 including capitalized development costs of CHF 3.2 million).
Despite the fact that the financial result was adversely affected by currency losses from operative hedge transactions and by
higher income tax charges, net profit increased by 41.7% to CHF 15.2 million (US $9.2 million) (1999: CHF 10.8 million),
resulting in a record first half for the Tecan Group.
``Our excellent result for this first half reflects our leading position in the drug discovery and diagnostics fields, where our high
tech products and integrated solutions have shown their potential in eliminating essential discovery bottlenecks,'' said Emile
Sutcliffe, CEO of the TECAN Group. ``Tecan's highly successful entry in the field of Genomics and Functional Genomics gives
me further confidence in our long term prospects for solid growth and performance.''
``In the first half of this year, especially in the first quarter 2000, we benefited from a backlog of orders from 1999 and from a
favorable exchange rate of the US dollar, which make our results appear particularly strong. For the year 2000, we are on
track for a very solid performance, which will exceed our financial objectives of growing between 20% to 30% this year,'' Mr.
Sutcliffe added.
Genomics and Functional Genomics lead sales performance
Sales in Genomics and Functional Genomics reached CHF 20 million in the first half of 2000, or 16% of sales. This represents
a significant performance as Tecan entered this new business segment only during 1999. Total sales for Genomics and
Proteomics for the entire year, in 1999, amounted to CHF 21 million or 11% of sales. This success in 2000 is due to strong
demand, in the United States and Europe, for Tecan's fully automated high throughput systems to prepare and extract DNA,
and in Functional Genomics for the discovery and scoring of genome variations (SNP Single Nucleotide Polymorphism).
Drug Discovery sales reached CHF 56 million or 45% of total sales, led by strong demand in the United States, Germany and
the United Kingdom. Diagnostic represented 39% of sales or CHF 48 million in the first half of 2000.
Above industry growth rates in all regions
North American sales jumped by 38% in local currencies to reach CHF 60.9 million and increased their proportion of global
sales to 49.1% from 45.7% in 1999. This outstanding performance was due to a strong performance in the field of Genomics
as well as Drug Discovery.
Driven by a solid performance in Genomics and Drug Discovery, sales in Europe increased by 32% in local currencies,
reaching CHF 54.4 million, or 43.9% of total sales. Good sales performance was also recorded in Asia with an 18% increase
in sales in local currencies.
Significant increase in operating profit
Tecan's gross profit margin remained stable at a high 68% in the first half 2000. The increase in operating profit (+50.4% to
CHF 25.1 million or 20% of sales) was driven by further improvements in operating efficiency and also due to stable R&D
investments which amounted in both periods to CHF 13.3 million or 10.7% of sales in the first half 2000, versus 15.3% in
1999. R&D efforts focused primarily on the development of new applications in the field of Genomics and Proteomics as well
as in Drug Discovery and Pre-analytical markets. In 1999, operating income benefited from capitalized development costs in
the amount of CHF 3.2 million.
The net financial result was negative during the period, due to the impact of currency losses from operative hedge transactions
caused by a strong dollar versus the Swiss franc. Due to further increased good operating results in high tax countries, income
taxes in the first half of the year increased to CHF 8.4 million from CHF 5.5 million as compared to the same period last year.
Net profit for the first half of 2000 increased by 41.7% to CHF 15.2 million from CHF 10.8 million in the same period in 1999.
Earnings per share increased to CHF 11.83 from CHF 8.30.
Cash flow improves substantially
Cash flows from operating activities increased by 53.3% to CHF 16.4 million in the first half of 2000, from CHF 10.7 million in
the same period last year, due to the significant expansion of operating activities. The Group reached a net positive cash
position at the end of June 2000 of CHF 56.3 million. This compares with CHF 37.4 million in 1999.
Outlook
From today's perspective, sales in the traditionally stronger second half of the year are set to increase further. For the business
year 2000, Tecan expects to exceed its original objectives of a sales growth between 20 to 30% and to achieve an accordingly
higher increase in profits.
TECAN is the No. 1 laboratory automation provider in the rapidly expanding life sciences market, specializing in the
development, manufacturing, and distribution of enabling solutions for the discovery of active pharmaceutical substances, as
well as for genomics, proteomics, and diagnostics. Founded in Switzerland in 1980, the Company has manufacturing, research
and development sites in both North America and Europe and maintains a sales and service network in 52 countries. TECAN
clients are leading pharmaceutical companies, university research departments and world-renowned diagnostics laboratories. In
1999, TECAN achieved sales of CHF 193.1 million (USD 129 million). Registered shares of TECAN Group are traded on
the Swiss SWX stock exchange (TK: TECN / Reuters: TECZn.S / Valor: 707821).
For more information, please contact:
Media Relations: Investor Relations:
Dr. Emile Sutcliffe Christophe Lamps
Chief Executive Officer Rochat & Partners
TECAN Group Phone: + 41 22 786 54 55
Phone: +41 55 254 81 11 Fax: + 41 22 786 54 58
Fax: +41 55 254 83 93 E-mail: clamps@rochat-pr.ch
Internet:www.tecan.com E-mail: investor@tecan.com
U.S. Media:
Gina Cella
Cella Communications
Phone: 781-334-4692
Fax: 781-334-4893
E-mail: ginacella@earthlink.net
SOURCE: TECAN |
