Alere Announces Second Quarter 2010 Results

WALTHAM, Mass., July 28 /PRNewswire-FirstCall/ -- Alere Inc. (formerly known as Inverness Medical Innovations, Inc.) (NYSE: ALR), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, today announced its financial results for the quarter ended June 30, 2010.

Financial results for the second quarter of 2010:

• Net revenue of $523.0 million for the second quarter of 2010, compared to $438.7 million for the second quarter of 2009.
• Recent professional diagnostics acquisitions contributed $62.5 million of incremental net revenue, compared to the second quarter of 2009.
• North American influenza sales totaled $0.6 million for the second quarter of 2010, compared to $14.6 million for the second quarter of 2009.
• GAAP net loss of $8.3 million attributable to common stockholders of Alere Inc. and respective net loss per common share of $0.10, compared to GAAP net loss of $1.2 million attributable to common stockholders of Alere Inc. and respective net loss per common share $0.01, for the second quarter of 2009.
• Adjusted cash basis net income per diluted common share from continuing operations of $0.57, compared to adjusted cash basis net income per diluted common share from continuing operations of $0.57, for the second quarter of 2009.

The Company’s GAAP results for the second quarter of 2010 include amortization of $74.1 million, $7.1 million of restructuring charges, $8.1 million of stock-based compensation expense, a $2.8 million charge associated with the write-up to fair market value of inventory acquired in connection with the acquisition of Standard Diagnostics, Inc., $2.0 million of acquisition-related costs recorded in accordance with ASC 805, Business Combinations, offset by $3.8 million of income recorded for fair value adjustments to acquisition-related contingent consideration obligations and a $1.3 million, net of tax, allocation of certain of the aforementioned charges to non-controlling stockholders. The Company’s GAAP results for the second quarter of 2009 include amortization of $61.2 million, $4.9 million of restructuring charges, $6.6 million of stock-based compensation expense and $1.7 million of acquisition-related costs recorded in accordance with ASC 805, Business Combinations. These amounts, net of tax, have been excluded from the adjusted cash basis net income per diluted common share attributable to Alere Inc. for the respective quarters.

A detailed reconciliation of the Company’s adjusted cash basis net income, which is a non-GAAP financial measure, to net income under GAAP, as well as a discussion regarding this non-GAAP financial measure, is included in the schedules to this press release.

The Company will host a conference call beginning at 10:00 a.m. (Eastern Time) today, July 28, 2010, to discuss these results as well as other corporate matters. During the conference call, the Company may answer questions concerning business and financial developments and trends and other business and financial matters. The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.

The conference call may be accessed by dialing 706-679-1656 (domestic and international), an access code is not required, or via a link on the Alere website at www.alere.com/ic. It is also available via link at http://event.meetingstream.com/r.htm?e=228683&s=1&k=0E445AC7F725CFFA3E6F855A0C7A7BFD. An archive of the call will be available from the same link approximately two hours after the conclusion of the live call and will be accessible for 60 days. Additionally, reconciliations to non-GAAP financial measures not included in this press release that may be discussed during the call will also be available at the Alere website (www.alere.com/ic) under the Earnings Calls and Releases section shortly before the conference call begins and will continue to be available on this website.

For more information about Alere, please visit our website athttp://www.alere.com.

By developing new capabilities in near-patient diagnosis, monitoring and health management, Alere enables individuals to take charge of improving their health and quality of life at home. Alere’s global leading products and services, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women’s health. Alere is headquartered in Waltham, Massachusetts.