CRL reports and guides:
>>WILMINGTON, Mass.--(BW HealthWire)--Aug. 2, 2001--Charles River Laboratories International, Inc. (NYSE:CRL - news), reported today that sales increased 51% in the second quarter of 2001 compared to the second quarter of 2000. Sales for this year's second quarter were $116.8 million, a $39.4 million increase over second quarter 2000 sales of $77.4 million. Net income before extraordinary items was $10.6 million for the second quarter, or $0.24 per diluted share, an increase of 70% compared to $0.14 per diluted share in the second quarter of 2000 (excluding a one-time, non-cash favorable tax adjustment of $0.20). Fully-diluted earnings per share (EPS) for the second quarter will exceed by $0.03 the consensus First Call estimate of $0.21 per share.
The Company experienced strong revenue and earnings growth in the second quarter of this year, in both its biomedical products and services and research model segments. While strategic acquisitions continued to contribute significantly to results, the Company also experienced solid organic growth. On a pro forma basis (adjusted to give effect to acquisitions completed earlier this year), and before unfavorable currency effects, sales increased 17% in the second quarter.
Commenting on these results, James C. Foster, Chairman and CEO, said, ``We're very pleased with our results for the second quarter. This is the fourth consecutive quarter since our June 2000 IPO in which we've experienced excellent revenue growth, while maintaining our commitment to strong profitability. Our two strategic acquisitions completed in the first quarter (Primedica and PAI) performed exceptionally well, both in terms of growth and profitability. This performance reflects a successful integration process, driven by multiple synergies. Our other drug discovery and development services also evidenced continued solid growth, as the demand from the biomedical research community for high quality outsourcing services remained strong. Our biomedical products and services segment now comprises nearly 60% of our revenues, reflecting a great deal of progress in adding and expanding value-added services that leverage our core research model capabilities.''
Mr. Foster continued: ``While our biomedical products and services segment continues to grow dynamically, we've also seen very good organic growth in our research models segment, particularly in the US. Our longstanding leadership position in this unique market continues to advance steadily. Our commitment to being the technology leader is evidenced by our investment in R&D collaborations in animal cloning and transgenics, as well as our acquisition of new disease models used in diabetes and cardiovascular research. We've also recently entered into a strategic alliance with The Jackson Laboratory to breed and distribute its genetically unique mouse models in Europe and Asia. We expect that these new technology platforms, products and strategic relationships will allow us to continue to grow and expand our very profitable research models business.''
Continuing his remarks, Mr. Foster indicated: ``We were delighted to complete in July our second follow-on equity offering this year, a $250 million transaction that raised $55 million in net proceeds for the Company. These proceeds will be used for debt repayment and for general corporate purposes. We continue to be optimistic about the strength of our markets, and the long-term trends in pre-clinical drug discovery and development, including outsourcing. We believe we have and will continue to gain share in the markets for products or ''tools`` as well as services that support global biomedical research activities. At the same time, we plan to expand our presence in these markets through new technology platforms and targeted strategic acquisitions.''
The following forward-looking guidance is subject to the qualifications set forth below, and is based on current exchange rates. For the third quarter of 2001, Charles River expects sales in the range of $114 million to $117 million, an increase of more than 50% over the prior year. The Company expects fully diluted earnings per share before extraordinary items in the range of $0.21 to $0.22, an increase of more than 75% over the prior year. For fiscal 2001, the Company projects earnings per share in the range of $0.85 to $0.87, compared to the First Call consensus for 2001 EPS of $0.77, or $0.80 when adjusting for actual second quarter results. For 2001, with the benefit of acquisitions completed in the first quarter, Charles River estimates revenues will exceed $445 million, or more than 45% growth on a reported basis compared to 2000 revenues.
Mr. Foster is scheduled to appear on the cable television network CNBC on Friday morning, August 3, at approx. 7:50 a.m. (EDT), to discuss the performance of the Company in the second quarter. <<
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MDCC starts a share buyback program:
>>SUNNYVALE, Calif., Aug 2, 2001 /PRNewswire via COMTEX/ -- Molecular Devices Corporation (Nasdaq: MDCC chart, msgs), today announced that its Board of Directors has approved the repurchase of up to an aggregate of 1.5 million shares of its Common Stock. "Based on current market prices, we believe that our stock is undervalued and that the repurchase program is a good investment of available funds," said Joseph D. Keegan, Ph.D., the Company's President and Chief Executive Officer. The repurchases will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. <<
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And TECH makes a deal:
>>MINNEAPOLIS, Aug 2, 2001 /PRNewswire via COMTEX/ -- Techne Corporation (Nasdaq: TECH chart, msgs) announced today that it has made an equity investment of $3 million and entered into a research and license agreement with Discovery Genomics, Inc., of Minneapolis, Minn. Discovery Genomics was recently organized and holds exclusive licenses from the University of Minnesota to develop technologies related to "knock-downs" in Zebrafish using a proprietary Morphant(TM) technology and to the use of the Sleeping Beauty Transposon(TM). Both technologies may be used for functional genomics and the discovery of drug targets. Additionally, the transposon may have applications in gene therapy. Morphant(TM) "knock-downs" are used to suppress and thereby study the functions of particular genes. The Zebrafish model system is a much faster and less expensive approach to gene discovery than other vertebrate model systems.
Techne acquired a 39% equity interest in Discovery Genomics and warrants to acquire additional equity. Techne was granted the rights to develop antibodies and immunoassays for proteins discovered by Discovery Genomics and an exclusive, royalty free license to sell such products in the research market. Techne may elect to sell such products in the diagnostic market in exchange for royalty payments to be negotiated later.
Under the applicable equity method of accounting, Techne will reflect as a research expense a portion of losses incurred by Discovery Genomics. Total losses of Discovery Genomics are expected not to exceed $1 million in the first year and $2 million in each of the second and third years. The portion reflected by Techne will depend each quarter on Discovery Genomics' capital structure and actual results of operations. Such forward-looking statements involve risks and uncertainties. Actual amounts will depend in part on factors beyond Techne's control, including Discovery Genomics' expense levels, the amount of income which it generates from the sale of services and products and possible investments by other parties which may reduce the percentage of equity held by Techne.
Techne Corporation has two operating subsidiaries: Research and Diagnostic Systems, Inc. (R&D Systems) of Minneapolis, Minn. and R&D Systems Europe, Ltd. (R&D Europe) of Abingdon, England. R&D Systems is a specialty manufacturer of biological products and R&D Europe is a distributor of biotechnology products. Techne's Common Stock is traded on the Nasdaq Stock Market under the symbol TECH. <<
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Cheers, Tuck |
