13 Cents!
Neogen Reports Record Quarterly Sales, Earnings
LANSING, Mich., Oct. 6 /PRNewswire/ -- Neogen Corporation (Nasdaq: NEOG)
today reported the highest sales and earnings for any quarter in the Company's
16-year history. In August, Neogen also recorded its first-ever $2 million
sales month.
Neogen's first quarter sales were $5,716,555, a 29% increase from last
year's first quarter, when sales totaled $4,427,082. Earnings increased 30%,
at $817,021, or $.13 per share this year, compared to $630,595, or $.10 per
share, last year.
"Volume efficiencies and a high mix of diagnostic product sales resulted
in gross margins improving from 56% last year in the first quarter to 61% this
year," said Lon Bohannon, Neogen's chief financial officer. "Our higher sales
and significant improvement in gross margins resulted in a 39% increase in
profit before taxes."
Neogen's first quarter sales increases were led by strong sales of animal
safety products, which increased 43% from last year. The Company's Food
Safety Division recorded a first quarter sales increase of 21%, compared to
last year. Sales of test kits to detect natural toxins in grains were the
biggest gainers, followed closely by increased sales of foodborne bacteria
test kits to the meat and poultry industries.
"First quarter results met management's expectations," said James Herbert,
Neogen's president and CEO. "We believe this performance is further evidence
that our decision to repurchase shares was correct."
In August, the Company announced authorization by Neogen's Board of
Directors to repurchase up to 250,000 shares of Company common stock in the
open market. To date, 81,000 shares have been repurchased.
The first quarter also saw the introduction of Neogen's test kit to detect
peanut allergens. The technology is of critical importance to the millions of
people worldwide who face severe consequences, up to and including death, if
they accidentally ingest minute quantities of peanuts. An allergy to peanuts
is one of the most common and serious of all food allergies.
Neogen Corporation is a Lansing, Michigan based company that develops and
markets products and services dedicated to food and animal safety. The
Company's diagnostic products are used by food and animal producers to test
for foodborne bacteria, natural toxins, drug and chemical residues, plant
diseases and quality assurance. |
