HOPKINTON, Mass., Nov. 3, 2011 /PRNewswire/ -- Caliper Life Sciences, Inc. (NASDAQ: CALP), today reported its financial results for the third quarter ended September 30, 2011. Third quarter revenue increased 24% to $36.9 million from $29.7 million in the same period in 2010. Organic revenue, which excludes the effects of acquisitions, divestitures and currency changes, grew by 16% over the third quarter of 2010 and 21% on a year-to-date basis. Caliper reported a third quarter net loss of $0.01 per share compared to net loss per share of $0.03 in the same period of 2010. On a non-GAAP basis, Caliper reported third quarter adjusted earnings of $1.9 million, or $0.03 per diluted share compared to adjusted earnings of $0.6 million, or $0.01 per diluted share in the same period of 2010. EBITDA increased 128% to $4.0 million in the third quarter from $1.7 million in the third 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:
- On September 7, 2011, Caliper entered into a definitive merger agreement with PerkinElmer, Inc. (NYSE: PKI), a leading company focused on improving the health and safety of people and the environment. Caliper stockholders will receive $10.50 per share in cash for a total net purchase price of approximately $600 million. The merger remains subject to approval by Caliper's stockholders, and is expected to be completed on November 7, 2011.
- On October 24, 2011, Caliper and DxTerity Diagnostics announced a co-development and co-marketing strategic collaboration that will allow researchers to perform DxTerity's NEAT multiplex diagnostic assays on Caliper's LabChip® Dx platform. DxTerity's NEAT assays allow "bleed-to-read" analysis of gene expression and detection of single nucleotide polymorphisms (SNPs) directly from blood or tissue samples, virtually eliminating complex sample preparation processes. Caliper's future LabChip Dx instruments will include specific diagnostic identification, scoring and reporting software developed in collaboration with DxTerity.
- On August 31, 2011, Caliper announced the availability of the IVIS® Spectrum® CT, a breakthrough preclinical imaging system that integrates advanced optical imaging and low dose microCT (micro computed tomography) into a single instrument. Advance orders already received for Spectrum CT will begin to ship in the fourth quarter of 2011.
"We are pleased with our third quarter financial results and our continued strong momentum going into the fourth quarter. We cannot be happier with the rapid adoption of our products, technologies and services stemming from our efforts over the past eight years to commercialize disruptive technologies for revolutionizing and personalizing medicine and improving overall human health," commented Kevin Hrusovsky, President and CEO of Caliper Life Sciences. "We look forward to the completion of the merger with PerkinElmer, which we expect will further accelerate the adoption and penetration of our innovative offerings and will provide us with greater resources to further develop our unique and innovative pipeline of new technologies and products. Our strategy is gaining momentum and we expect the PerkinElmer merger to further catalyze our profitable growth for many years to come," added Hrusovsky.
Analysis of Third Quarter 2011 Results
Total gross margin was relatively flat at 53% compared to the third quarter of 2010. Product gross margins increased 2 percentage points as a result of volume and product mix improvements. However, the product gross margin improvement was offset by decreases in service gross margins, due to increased investment in personnel costs to support incremental revenue growth, and contract and license gross margins, due to higher third-party royalties and sublicense fees.
Operating expenses (research and development, and selling, general and administrative costs) increased 21% to $18.7 million, from $15.5 million in the same period in 2010. Approximately 40% of the increase was attributable to incremental operating expenses incurred as a result of the addition of CRi's operations. Another 40% of the increase related to transaction expenses incurred in connection with Caliper's planned merger with PerkinElmer, and the remaining 20% of the expense increase resulted primarily from increased investment in sales and marketing efforts, net of lower litigation expenses incurred in the third quarter.
- Revenue increased 24% in the third quarter of 2011 compared to the same period in 2010, comprised of 16% organic growth, 6% acquisition-driven growth and 2% favorable currency benefit. Revenue growth for each of Caliper's three principal business units was as follows:
- Research revenue grew 42%, comprised of microfluidics (LabChip) and automation product line growth of 48% and 32%, respectively. Both LabChip and automation performance was driven by end market demand for Caliper's products for next generation sequencing sample preparation and quality control applications. Revenue from instrument services increased by 14% and microfluidic license and royalty revenues increased by 73% during the third quarter, contributing to the business unit's overall performance.
- Imaging revenue grew 12% driven primarily by tissue imaging product line revenues of Cambridge Research & Instrumentation Inc. (CRi), which Caliper acquired in December 2010. In vivo imaging revenue decreased approximately 1% primarily due to changes in product and channel mix that resulted in a lower average selling price per instrument sold during the third quarter; however, this impact was partially offset by service and license revenue growth.
- Services (CDAS) revenue grew 3% primarily attributable to increased government revenues from CDAS' contract with the Environmental Protection Agency (EPA) under the EPA's ToxCast screening program, which were partially offset by lower commercial service revenues.
Use of Non-GAAP Financial Measures
Caliper supplements its GAAP financial reporting with certain non-GAAP financial measures. Reconciliations of Caliper's GAAP to non-GAAP revenue and earnings per share are provided at the end of this release under "Reconciliation of GAAP to Non-GAAP Financial Measures."
Certain revenue growth percentages in this press release are derived from non-GAAP revenues which exclude the impact of revenue from product and services lines which were divested in the second quarter of 2010. Caliper believes that providing this additional information enhances investors' understanding of the financial performance of the Company's operations and increases the comparability of its current financial statements to prior periods.
About Caliper Life Sciences
Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results, enabling the translation of those results into cures for human disease. Caliper's portfolio of offerings includes state-of-the-art microfluidics, lab automation & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions. For more information please visit www.caliperLS.com.
The statements in this press release regarding future events, including Caliper's statements concerning strong momentum going in to the fourth quarter of 2011, its belief that the merger with PerkinElmer will be approved by Caliper's stockholders and will close on November 7, 2011, the expectation that the merger with PerkinElmer will further accelerate the adoption and penetration of our innovative offerings and will provide Caliper with greater resources to further develop its unique and innovative pipeline of new technologies and products, and the expectation that the PerkinElmer merger will further catalyze Caliper's profitable growth for many years to come are "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements as a result of a number of factors, including that (i) Caliper's expectations regarding demand for its products and services may not materialize if capital spending by Caliper's customers declines, if customers do not purchase Caliper's products as rapidly as Caliper believes that they will, if competitors introduce new competitive products, or if Caliper is unable to convince potential customers regarding the superior performance of its microfluidic and imaging systems and products, and (ii) Caliper's stockholders may not vote to approve the pending merger with PerkinElmer, Inc. Further information on risks faced by Caliper are detailed under the caption "Risks Related To Our Business" in Caliper's Annual Report on Form 10-K for the year ended December 31, 2010. Our filings are available on a web site maintained by the Securities and Exchange Commission at http://www.sec.gov. Caliper does not undertake any obligation to update forward-looking or other statements in this release.