Tuesday January 6, 9:51 am Eastern Time
Company Press Release
SOURCE: Neogen Corporation
Neogen Announces Second Quarter Results
LANSING, Mich., Jan. 6 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG - news) announced today record sales and
earnings for its second quarter ended November 30, 1997. Total sales for the quarter were $4,627,000 resulting in net income
of $689,000 or $.11 per share. Last year, Neogen reported second quarter sales of $3,761,000 and net income of $413,000
or $.08 per share. Sales and earnings for the first six months of the current fiscal year were $9,054,000 and $1,319,000
($0.21 per share), respectively, compared to $7,796,000 and $813,000 ($0.16 per share) last year.
Lon Bohannon, Neogen's Chief Financial Officer, stated that ''Last year's second quarter and year to date results benefited
from unusually high sales of test kits to detect vomitoxin as a result of a poor quality mid-west winter wheat crop.
Consequently, management is extremely pleased with the substantial increase in second quarter sales compared to last year.''
Bohannon also pointed out that this was the sixth consecutive quarter that the Company had exceeded analysts' estimates.
Sales of diagnostic products in the second quarter were 29% higher than the prior year. Lower sales of diagnostic test kits to
detect vomitoxin 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 114% for the quarter. In addition,
sales to the meat and poultry market for the detection of harmful bacteria increased 155% compared to the prior year. The
Company's veterinary instrument group reported its third consecutive quarter of positive growth with sales up 3% compared to
last year.
New regulations stressing food safety controls at critical control points during processing became mandatory for the Seafood
industry in December and will be implemented in the Meat and Poultry industry in January. James Herbert, Neogen President
and CEO, said, ''We experienced increases in sales of our diagnostic products to the Seafood and Meat and Poultry markets
as the deadlines for new regulations drew near. We are expanding our sales efforts in these markets because we believe they
offer the best potential for future sales growth for Neogen.''
Neogen announced yesterday that it had acquired certain assets of Vetoquinol U.S.A., Inc., a USDA licensed biologics
production firm in Tampa, Florida. Vetoquinol's principal products are EqStim(R) and ImmunoRegulin(R), sold to veterinarians
to stimulate immune systems and help fight off infections in horses and dogs. Neogen expects sales in the first 12 months
following acquisition to approximate $1,500,000, which could contribute $600,000 in operating profit before tax.
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.
NEOGEN CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For Three Months Ended
November 30
1997 1996
Sales $4,627,152 $3,761,162
Net Income $688,698 $412,740
Net Income Per Share $.11 $.08
Average Shares Outstanding 6,438,695 5,395,581
For Six Months Ended
November 30
1997 1996
Sales $9,054,234 $7,796,085
Net Income $1,319,293 $813,499
Net Income Per Share $.21 $.16
Average Shares Outstanding 6,374,649 5,064,527
SOURCE: Neogen Corporation
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