Bio-Rad Laboratories, Inc. Reports Second-Quarter Currency-Neutral Revenue Growth of 3.5 Percent

HERCULES, CA--(Marketwire - August 04, 2009) - Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B), a multinational manufacturer and distributor of life science research and clinical diagnostic products, announced financial results today for the second quarter ended June 30, 2009.

Second-quarter reported revenues were $427.2 million, down 5.6% compared to $452.4 million reported for the second quarter of 2008. On a currency-neutral basis, quarterly revenues increased 3.5% compared to the same period last year. Net income attributable to Bio-Rad for the second quarter was $38.0 million, or $1.37 per share on a fully diluted basis, compared to $43.4 million or $1.57 per share, respectively, during the same period last year. Reflected in operating income are $5.5 million of amortization and purchase accounting adjustments for the second quarter of 2009 associated with the 2007 DiaMed acquisition. Second-quarter gross margin increased to 56.6% compared to 54.9% during the same quarter last year.

Year-to-date revenues were $828.1 million, down 5.3% compared to the first two quarters in 2008. Adjusting for the impact of currency effects, revenue growth was 3.4%. Year-to-date net income attributable to Bio-Rad for 2009 was $68.2 million, or $2.47 per share on a fully diluted basis, compared to $69.9 million, or $2.54 per share, respectively, during the same period in 2008.

“We are encouraged by the strength we continue to see in many of our core markets despite currency headwinds and a weakened global economy, which have tempered our reported performance so far this year,” said Norman Schwartz, Bio-Rad President and Chief Executive Officer. “As the year progresses, we will remain focused on opportunities to improve our operational efficiencies as well as expand our business.”

Life Science

The Life Science segment net sales for the quarter were $149.7 million, down 7.4% or 0.4% on a currency-neutral basis, compared to the same period last year. Growth in the Life Science segment was negatively impacted by slowed research markets in both the U.S. and Europe, which reflect constraint and delays in spending by academic and biopharmaceutical customers. Performance during the quarter benefited from strong sales in protein function and gene expression products, in particular polymerase chain reaction (PCR) instruments and reagents. SsoFast™ EvaGreen® Supermix, the first member of Bio-Rad’s next-generation family of high-performance, real-time PCR reagents that was launched in April continues to gain customer acceptance.

Clinical Diagnostics

The Clinical Diagnostics segment reported net sales of $274.3 million for the quarter, down 4.6% compared to the second quarter in 2008. On a currency-neutral basis, sales for the segment increased 5.8%. This performance is the result of continued growth across all product lines, most notably blood virus testing products, microbiology, quality control products, and the Company’s BioPlex® 2200 system. Shipments of blood virus test systems were particularly strong during the quarter across most regions. In June, the Company announced FDA clearance of two new multiplex infectious disease serology panels for use on the BioPlex 2200 system: the BioPlex ToRC IgG panel and the BioPlex HSV-1 & HSV-2 IgG panel. The ToRC IgG kit simultaneously detects IgG class antibodies to Toxoplasma gondii (T. gondii), Rubella, and Cytomegalovirus (CMV). The HSV-1 & HSV-2 IgG kit utilizes type-specific proteins to simultaneously detect and differentiate IgG class antibodies to the two most common herpes subtypes, HSV-1 and HSV-2.

Management will discuss these results in a conference call at 2 PM Pacific Time (5 PM Eastern Time) August 4, 2009. Interested parties may access the call by dialing 866-270-6057 (in the U.S.) or 617-213-8891 (international), access number 69361175.

The live webcast may also be accessed at http://www.bio-rad.com. A replay of the call will be available at 888-286-8010 (in the U.S.), or 617-801-6888 (international), access number 62221247 for seven days following the call, and the webcast can be accessed at http://www.bio-rad.com for 30 days.

About Bio-Rad

Bio-Rad Laboratories, Inc. (NYSE: BIO) and (NYSE: BIO.B), has remained at the center of scientific discovery for more than 50 years, manufacturing and distributing a broad range of products for the life science research and clinical diagnostic markets. The Company is renowned worldwide among hospitals, universities, major research institutions, as well as biotechnology and pharmaceutical companies for its commitment to quality and customer service. Founded in 1952, Bio-Rad is headquartered in Hercules, California, and serves more than 85,000 research and industry customers worldwide through its global network of operations. The Company employs over 6,500 people globally and had revenues exceeding $1.7 billion in 2008. For more information, please visit www.bio-rad.com.

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “believe,” “expect,” “may,” “will,” “intend,” “estimate,” “continue,” or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. For further information regarding the Company’s risks and uncertainties, please refer to the “Risk Factors” in the Company’s public reports filed with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc. disclaims any obligation to update these forward-looking statements.

 Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Income (in thousands, except per share data) (UNAUDITED) Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2009 2008 2009 2008 --------- --------- --------- --------- Net sales $ 427,183 $ 452,361 $ 828,116 $ 874,558 Cost of goods sold 185,221 203,940 357,253 399,254 --------- --------- --------- --------- Gross profit 241,962 248,421 470,863 475,304 Selling, general and administrative expense 143,670 146,634 283,983 286,289 Research and development expense 42,407 42,079 79,558 79,568 --------- --------- --------- --------- Income from operations 55,885 59,708 107,322 109,447 Interest expense 10,367 7,991 18,174 15,948 Foreign exchange (gains) losses, net 2,551 (288) 1,777 2,305 Other (income) expense, net (6,307) (3,951) (5,148) (4,144) --------- --------- --------- --------- Income before taxes 49,274 55,956 92,519 95,338 Provision for income taxes (9,974) (10,632) (21,176) (21,455) --------- --------- --------- --------- Net income including noncontrolling interests 39,300 45,324 71,343 73,883 Less: Net income attributable to noncontrolling interests (1,331) (1,926) (3,109) (3,990) --------- --------- --------- --------- Net income attributable to Bio-Rad $ 37,969 $ 43,398 $ 68,234 $ 69,893 ========= ========= ========= ========= Basic earnings per share: Net income attributable to Bio-Rad $ 1.39 $ 1.61 $ 2.50 $ 2.59 ========= ========= ========= ========= Weighted average common shares 27,370 27,038 27,346 26,997 ========= ========= ========= ========= Diluted earnings per share: Net income attributable to Bio-Rad $ 1.37 $ 1.57 $ 2.47 $ 2.54 ========= ========= ========= ========= Weighted average common shares 27,742 27,569 27,681 27,553 ========= ========= ========= ========= Bio-Rad Laboratories, Inc. Condensed Consolidated Balance Sheets (In thousands) (UNAUDITED) June 30, December 31, 2009 2008 ------------ -------------- Current assets: Cash and cash equivalents $ 533,474 $ 204,524 Short-term investments 29,885 38,950 Accounts receivable, net 335,828 339,653 Inventories, net 377,594 375,616 Other current assets 121,054 135,198 ------------ -------------- Total current assets 1,397,835 1,093,941 Net property, plant and equipment 302,836 300,732 Goodwill 318,264 321,820 Purchased intangibles, net 213,933 228,590 Other assets 111,589 92,181 ------------ -------------- Total assets $ 2,344,457 $ 2,037,264 ============ ============== Current liabilities: Notes payable and current maturities of long-term debt $ 5,874 $ 9,578 Accounts payable 90,850 117,982 Accrued payroll and employee benefits 104,267 119,420 Sales, income and other taxes payable 46,486 33,731 Other current liabilities 136,132 137,323 ------------ -------------- Total current liabilities 383,609 418,034 Long-term debt, net of current maturities 738,454 445,979 Other long-term liabilities 94,753 102,611 ------------ -------------- Total liabilities 1,216,816 966,624 Bio-Rad stockholders’ equity 1,110,181 1,041,139 Noncontrolling interests 17,460 29,501 ------------ -------------- Total stockholders’ equity 1,127,641 1,070,640 ------------ -------------- Total liabilities and stockholders’ equity $ 2,344,457 $ 2,037,264 ============ ============== Bio-Rad Laboratories, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (UNAUDITED) Six Months Ended June 30, 2009 2008 --------- --------- Cash flows from operating activities: Cash received from customers $ 831,208 $ 877,910 Cash paid to suppliers and employees (698,527) (781,755) Interest paid (15,340) (15,448) Income tax payments (13,220) (16,848) Other operating activities 7,742 3,052 --------- --------- Net cash provided by operating activities 111,863 66,911 Cash flows from investing activities: Payments for acquisitions and long-term investments (33,805) (17,110) Other investing activities (36,965) (35,043) --------- --------- Net cash used in investing activities (70,770) (52,153) Cash flows from financing activities: Payments on long-term debt (3,585) (4,414) Long-term borrowings 294,750 - Other financing activities (60) 8,090 --------- --------- Net cash provided by financing activities 291,105 3,676 Effect of exchange rate changes on cash (3,248) 3,445 --------- --------- Net increase in cash and cash equivalents 328,950 21,879 Cash and cash equivalents at beginning of period 204,524 161,764 --------- --------- Cash and cash equivalents at end of period $ 533,474 $ 183,643 ========= ========= Reconciliation of net income including noncontrolling interests to net cash provided by operating activities: Net income including noncontrolling interests $ 71,343 $ 73,883 Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization 47,765 49,323 Changes in working capital (7,490) (61,270) Other 245 4,975 --------- --------- Net cash provided by operating activities $ 111,863 $ 66,911 ========= =========