CARLSBAD, Calif., April 24, 2012 /PRNewswire/ -- Life Technologies Corporation (NASDAQ: LIFE) today announced results for its first quarter ended March 31, 2012. Revenue for the first quarter was $939 million, an increase of 5 percent over the $897 million reported for the first quarter of 2011. Excluding the impact of currency, revenue growth for the quarter was 2 percent compared to the same period of the prior year.
"We had a successful start to the year as strength across our businesses and improved efficiencies drove revenue and earnings growth above our guidance expectations," said Gregory T. Lucier, Chairman and Chief Executive Officer of Life Technologies. "Our solid results were driven by increased sales in our Genetic Analysis business group, particularly in Ion Torrent, growth in our emerging and applied markets, and a 200 basis point expansion in operating margins, resulting in EPS growth of 17 percent."
"During the quarter, we continued to deliver on our innovation pipeline, launching the Ion AmpliSeq Custom Panels and TaqMan® Mutation Detection Assays. We made solid progress in our Applied Sciences business completing two tuck-in acquisitions in our Animal Health and Food Safety business, where we pro-actively pursued assets to help differentiate us in the market place."
Life Technologies reported current quarter results compared to the quarter ended March 31, 2011. Results are non-GAAP unless indicated otherwise. A full reconciliation of the non-GAAP measures to GAAP can be found in the tables of today's press release.
Analysis of First Quarter 2012 Results
- First quarter revenue increased 5 percent over the prior year. Revenue growth without the impact from currency was 2 percent.
- Gross margin in the first quarter was 66.6 percent, approximately 30 basis points higher than the same period of the prior year due to a benefit from the roll off of currency hedges which were in place last year, realized price and the positive impact from increased productivity, partially offset by the negative impact from higher Ion Torrent instrument sales and lower royalty revenue.
- Operating margin was 30.2 percent in the first quarter, approximately 200 basis points higher than the same period of the prior year. Operating margin improvement was primarily due to the company's continued focus on operational efficiencies, offset by increases in our investments in emerging and applied markets.
- First quarter tax rate was 28.4 percent.
- First quarter EPS increased 17 percent to $0.99.
- Diluted weighted shares outstanding were 183.1 million in the first quarter, a decrease of 3 million shares over the prior year. The decrease was a result of the continuation of the company's share repurchase program, partially offset by dilution from employee equity programs. The company repurchased $185 million or 4 million shares in the first quarter of 2012.
- Cash flow from operating activities for the first quarter was $104 million. First quarter capital expenditures were $25 million, resulting in free cash flow of $79 million. The company ended the quarter with $264 million in cash and short-term investments.
Business Group Highlights:
As previously announced, Life Technologies has modified its financial reporting into three new business groups to better reflect the company's internal organization and end markets. These business groups are Research Consumables, Genetic Analysis and Applied Sciences. These changes have no impact on results of operations, financial condition or cash flows of the company as a whole.
The company's internal organization had previously been structured around its technology platforms of Molecular Biology Systems, Genetic Systems and Cell Systems. As a result of this business realignment, the company is reporting its financial results for these three new business groups commencing with the quarter ended March 31, 2012. The revised financial data reflecting these changes were released in a Form 8-K on April 11, 2012 and is also available at the company's investor relations website at https://ir.lifetechnologies.com.
- Research Consumables revenue was $420 million, an increase of 4 percent compared to the prior year. Excluding the impact from currency, revenue for the business group grew 1 percent over prior year, as a result of growth in cell culture workflow products, endpoint PCR products and molecular and cell biology consumables.
- Genetic Analysis revenue was $356 million in the first quarter, an increase of 7 percent over the same period last year. Excluding the impact from currency, revenue increased 4 percent as a result of growth of the Ion Torrent and CE products, which was partially offset by lower qPCR royalties and lower sales of SOLiD products, both of which were expected.
- Applied Sciences revenue was $162 million in the first quarter, an increase of 4 percent over the same period last year. Excluding the impact from currency, revenue grew 3 percent year over year, driven by increased sales in BioProduction, Forensics and Animal Health and Food Safety products.
- Regional revenue growth rates for the quarter compared to the same quarter of the prior year were as follows: the Americas were flat, Europe grew 2 percent, Asia Pacific grew 8 percent and Japan grew 7 percent.
- Revenue from orders transacted through Life Technologies' eCommerce channels grew 6 percent during the quarter. Over 50 percent of all transactions are processed using eCommerce platforms.
Fiscal Year 2012 Outlook
Subject to the risk factors detailed in the Safe Harbor Statement section of this release, the company reaffirmed its guidance for organic revenue growth of 2 to 4 percent over 2011 revenues of $3.7 billion and non-GAAP earnings per share to be in a range of $3.90 to $4.05. The company will provide further detail on its business outlook during the webcast today.
The company will discuss its financial and business results as well as its business outlook on its webcast at 4:30 PM ET today. This webcast will contain forward-looking information. The webcast will include a discussion of "non-GAAP financial measures" as that term is defined in Regulation G. For actual results, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the company's financial results determined in accordance with GAAP, as well as other material financial and statistical information to be discussed on the webcast will be posted at the company's investor relations website at https://ir.lifetechnologies.com. The webcast can be accessed through the investor relations page of the company's website at https://ir.lifetechnologies.com/events.cfm. A replay of the webcast will be available on the company's website through Tuesday, May 15, 2012.
About Life Technologies
Life Technologies Corporation (NASDAQ: LIFE) is a global biotechnology company dedicated to improving the human condition. Our systems, consumables and services enable researchers to accelerate scientific and medical advancements that make life even better. Life Technologies customers do their work across the biological spectrum, working to advance the fields of discovery and translational research, molecular medicine, stem cell-based therapies, food safety and animal health, and 21st century forensics. The company manufactures both molecular diagnostic and research use only products. Life Technologies' industry-leading brands are found in nearly every life sciences lab in the world and include innovative instrument systems under the Applied Biosystems and Ion Torrent names, as well as, the broadest range of reagents with its Invitrogen, GIBCO, Ambion, Molecular Probes and TaqMan® products. Life Technologies had sales of $3.7 billion in 2011, employs approximately 10,400 people, has a presence in approximately 160 countries, and possesses one of the largest intellectual property estates in the life sciences industry, with approximately 4,000 patents and exclusive licenses. For more information on how we are making a difference, please visit our website: www.lifetechnologies.com.