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Caliper Life Sciences, Inc. (CALP) Reports Second Quarter 2011 Results

8/2/2011 2:30:42 PM

HOPKINTON, Mass., Aug. 2, 2011 /PRNewswire/ -- Caliper Life Sciences, Inc. (NASDAQ: CALP) today reported its financial results for the second quarter ended June 30, 2011. Second quarter revenue increased to $38.3 million, or 32%, from $29.1 million in the same period of 2010. Organic revenue, which excludes the effects of acquisitions, divestitures and currency changes, grew by 23% over the second quarter of 2010 (24% on a year-to-date basis). Caliper reported a second quarter net loss of $0.06 per share compared to net income per share of $0.18 in the same period of 2010, which resulted from the gain on the divestiture of Caliper's former specialty products business. Caliper had second quarter non-GAAP adjusted earnings of $1.0 million, or $0.02 per diluted share compared to break-even non-GAAP adjusted earnings per share in the same period of 2010, as well as EBITDA of $2.7 million in the second quarter, which was an 84% improvement over the second quarter of 2010.

Please refer to the tables included under "Reconciliation of GAAP to Non-GAAP Financial Measures" for itemized reconciliations between GAAP and non-GAAP financial measures appearing in this release.

Among recent business highlights:

  • Caliper announced on July 26 that its LabChip Dx instrument has achieved CE IVD registration which allows the LabChip Dx to be used to process clinical patient samples in Europe. The LabChip Dx currently runs tests from the Seeplex® menu of diagnostic assays from Seegene Inc. and is marketed outside of the United States through Seegene's international distributor network.
  • Caliper announced new collaborations during the second quarter for NGS sample preparation and quality control platforms with Roche Nimblegen, EdgeBio and The Genome Analysis Centre, involving the use of Caliper's NGS platform solutions, including the Sciclone® NGS workstation and the LabChip GX and LabChip XT instruments.
  • Caliper completed the integration and transfer of Cambridge Research & Instrumentation, Inc.'s (CRi) manufacturing operations from Woburn, Mass. to its Hopkinton, Mass. headquarters, resulting in closure of the Woburn facility in the second quarter. The shutdown occurred one quarter earlier than initially projected.
  • Caliper hosted its 2011 annual Caliper Owners Group (COG 2011) meeting on May 17 and 18 at its Hopkinton headquarters. This thought-leadership conference brought together leaders in life sciences research, drug discovery, and diagnostics to discuss the technologies and discoveries that are transforming the detection and treatment of disease, and making personalized medicine a reality. More than 350 customers attended the event, which featured 45 presentations from researchers representing life sciences companies, universities and other institutions.

"We are pleased with our second quarter financial results and the strategic progress we made in the quarter," commented Kevin Hrusovsky, President and CEO of Caliper Life Sciences. "We had a robust quarter in our Research business unit due to strong ongoing adoption of our NGS sample preparation solutions, molecular diagnostics penetration with the LabChip Dx, and continued LabChip GX adoption driven by biotherapeutic and vaccine development. In addition, our recently announced CE IVD approval opens up new market opportunities in Europe for the LabChip Dx, and enhances our clinical diagnostics long-term growth potential. We are particularly pleased that our strategic transformation designed to commercialize disruptive technologies for revolutionizing and personalizing medicine is gaining momentum and traction in all target markets," added Hrusovsky.

Analysis of Second Quarter 2011 Results

  • GAAP revenue increased 32% in the second quarter of 2011 compared to the same period in 2010. Non-GAAP revenues grew 37% in the second quarter of 2011 compared to the same period of 2010, comprised of 23% organic growth, 10% acquisition-driven growth and 4% favorable currency benefit. Non-GAAP revenue growth for each of Caliper's three principal business units was as follows:
    • Research revenue grew 52%, comprised of microfluidics (LabChip) and automation product line growth of 51% and 53%, respectively. Both LabChip and automation growth was driven by end market demand for Caliper's analytical and preparative NGS sample preparation and quality control platforms. LabChip revenues also benefitted from increasing market adoption of Caliper's LabChip Dx instrument for multiplex molecular diagnostic analysis, for which CE IVD approval was recently received, and an increase in microfluidics intellectual property license revenue.
    • Imaging revenue grew 23% driven primarily by tissue imaging products added to Caliper's imaging platform capabilities as a result of its acquisition of CRi in December 2010. In vivo imaging revenues were relatively flat quarter over quarter due primarily to some delayed funding situations in certain academic and commercial accounts, and to a lesser extent to the product mix sold during the quarter.
    • Services (CDAS) revenue grew 82% primarily attributable to revenues from CDAS' contract with the Environmental Protection Agency ("EPA") under the EPA's ToxCast screening program.
  • Total gross margin was relatively flat at 52% compared to the second quarter of 2010 due to unfavorable changes in revenue and sales channel mix which partially offset the incremental contribution that overall higher revenues had upon gross margin.
  • Operating expenses (research and development, and selling, general and administrative costs) increased 27% to $19.1 million, from $15.0 million in the same period in 2010. Approximately one-half of the increase was attributable to incremental operating expenses incurred as a result of the addition of CRi's operations. The remainder of the expense increase resulted primarily from increased investment in sales and marketing efforts and increased legal expenses due to litigation which was ongoing during the second quarter.
  • Caliper recorded a restructuring charge of approximately $1.3 million in the second quarter related to the closure of the CRi facility in Woburn, Mass. Caliper also recorded a charge of approximately $1.1 million, in addition to scheduled amortization, to write-off certain in-process research and development assets deemed to no longer have value.

2011 Guidance

Caliper is currently projecting 2011 full year GAAP revenue between $146 and $152 million. In addition, the Company estimates third quarter revenues in the range of $33 to $36 million. Caliper will provide further details on its business outlook during the conference call today.

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