Tuesday September 23 9:16 AM EDT
Company Press Release
Neogen Announces Record First Quarter
LANSING, Mich., Sept. 23 /PRNewswire/ -- Neogen Corporation (Nasdaq:NEOG) announced today record sales and
earnings for its first quarter ended August 31. Total revenues for the quarter were $4,427,082 resulting in net income of
$630,596 or $.10 per share. Neogen reported first quarter revenues of $4,034,923 the prior year, and net income of
$400,759 or $.08 per share.
Last year, Neogen's first quarter benefited from unprecedented sales of vomitoxin diagnostic test kits. The Midwest was faced
with a poor- quality winter wheat crop, which made testing prevalent. Management thought it would be difficult to match last
year's results, so we are very pleased to report record sales and earnings for the first quarter, said Lon Bohannon, Neogen's
chief financial officer. This is the fifth consecutive quarter that the Company exceeded analysts estimates.
Sales of diagnostic products in the first quarter were 11% higher than the prior year. Lower sales of vomitoxin diagnostic test
kits were more than offset by continued strong growth in other diagnostic product lines. Sales of diagnostic products and
reagents sold to the pharmacologics and professional equine markets increased 86% for the quarter. Test kits used to detect
microorganisms also exhibited strong growth in the first quarter with total sales 69% higher than the prior year. The Company's
veterinary instrument group reported its second consecutive quarter of positive growth with sales up 3% compared to last year.
Neogen achieved more than financial success in the first quarter, said Neogen President and CEO James Herbert. We
introduced two new products and completed an acquisition that will contribute positive top and bottom line growth for the long
term. The market for food safety diagnostic tests is large and expected to grow to $500 million. We estimate that only 14% of
that total potential market is now being served by rapid diagnostic tests. In late August, a national recall of ground beef due to
E.coli O157:H7 contamination focused media attention on food safety. As a result, Neogen gained additional recognition in the
financial community.
Except for historical information contained herein, the statements made in this release constitute forward-looking statements that
involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the
forward-looking statements, including those risks detailed from time to time in the Company's reports on file at the Securities
and Exchange Commission.
Neogen Corporation is a Lansing, Michigan based company that develops and markets solutions for safety and improved
quality in food, agriculture and pharmacologics. The Company's diagnostic products are used by food animal producers to test
for foodborne bacteria, natural toxins, drug residues, plant diseases and quality assurance.
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