NORCROSS, Ga., April 1, 2008 /PRNewswire-FirstCall/ -- Immucor, Inc. , a global leader in providing automated instrument-reagent systems to the blood transfusion industry, today reported financial results for the fiscal third quarter ended February 29, 2008.
Revenue for the fiscal third quarter was $67.0 million, up 17% from $57.1 million in the same period last year. Of the $9.9 million total increase in revenues, approximately $4.6 million came from price increases in the United States, approximately $1.6 million came from sales increases including instrument revenues outside the United States, and approximately $2.1 million of the increase is due to the effect of the change in the Euro, Japanese Yen and Canadian dollar exchange rates. Volume increases in the United States totaled $1.6 million as instruments contributed $1.8 million and reagents $0.8 million, partially offset by a $1.0 million reduction in collagen sales resulting from our previously announced decision to cease collagen production. Gross margin improved to 72.1% in the quarter compared to 70.7% in the prior year quarter.
Net income for the third quarter was $19.3 million, up 28% from $15.0 million for the same quarter last year. Diluted earnings per share totaled $0.27 on 71.1 million weighted average shares outstanding, up from $0.21 on 71.0 million weighted average shares outstanding for the same period last year.
Sales of instruments were $7.1 million in the third quarter of fiscal 2008, an increase from $4.4 million in the fiscal 2007 third quarter. Most instrument sales are recognized over the life of the underlying reagent contract, which is usually 5 years. In the quarter ended February 29, 2008 approximately $4.1 million of instrument sales for 39 Galileo(R) and ECHO(TM) instruments were deferred in this manner while the associated cost of sales of approximately $2.4 million was expensed. As of February 29, 2008, deferred instrument revenues, including deferred service revenues, totaled $24.8 million. Reagent gross margin grew to 81.0% during the third quarter of fiscal 2008 compared to 77.6% in the same period last year.
“We are very pleased with our outstanding quarterly financial results and the number of Echo orders received in the United States, which exceeded our expectations” said Dr. Gioacchino De Chirico, President and Chief Executive Officer. “In the third quarter we received 54 Echo orders in North America and another 16 Echo orders in the rest of the world for a total of 70 in the quarter. We also received orders for 11 Galileo in North America in the third quarter, and another 11 Galileo orders in the rest of the world for a total of 22 in the quarter.” Commenting further, Dr. De Chirico stated, “Based on the very positive results of the Galileo Echo launch and continued Galileo placements we believe we can achieve market share gains and revenue growth through an increasing number of instrument placements. Third quarter results were positively impacted as 19 of the 20 Galileo instruments previously sold to the American Red Cross went live in the quarter. As of February 29, 2008, the Company had received orders for a total of 562 Galileo instruments worldwide, including 245 in North America and 317 in the rest of the world, and 516 of these instruments were generating reagent revenues, an increase of 38 in the quarter. As of February 29, 2008, the Company had received orders for a total of 155 Echo instruments worldwide.” Dr. De Chirico also noted, “Our recently announced proposed acquisition of BioArray Solutions Ltd. means the Company is positioning itself at the leading edge of technology in blood banking. Our excellent current results, good growth prospects for our current products, and now an expected leadership position in molecular diagnostics for our markets make this a very exciting time for Immucor.”
We now believe that our revenue, gross margin and earnings per diluted share for the fiscal year ending May 31, 2008 will all be at, or modestly above, the high end of the guidance ranges disclosed in our press release dated May 31, 2007.
Immucor, Inc. will host a conference call April 2, 2008 at 8:30 a.m. (EDT) to review these results. Investors are invited to participate in this conference call with Dr. Gioacchino De Chirico, President and Chief Executive Officer; Richard Flynt, Chief Financial Officer; and Edward L. Gallup, consultant. The call will focus on the results for the third quarter and general business trends. This earnings release will be posted on Immucor’s website, as well as any material financial information that may be discussed by Messrs. De Chirico, Flynt, or Gallup during this call that is not contained in the earnings release. Both this earnings release and the additional financial information, if any, will be posted as soon as practicable after the call on the investor news section of Immucor’s website. To access this information once posted, go to Immucor’s website at www.immucor.com and click on “About Us - Press Releases.” To participate in the telephone conference call, dial 1-888-950-8044, pass code BLUD. Replays of the conference call will be available for one week beginning at 12:00 PM on April 2, 2008 by calling 1-888-568-0013. Beginning April 9, 2008, audio of the conference call or a transcript of the audio will be available on the “About Us - Press Releases” page of the Immucor website.
Founded in 1982, Immucor manufactures and sells a complete line of reagents and systems used by hospitals, reference laboratories and donor centers to detect and identify certain properties of the cell and serum components of blood prior to transfusion. Immucor markets a complete family of automated instrumentation for all of its market segments.
For more information on Immucor, please visit our website at www.immucor.com.
Statements contained in this press release that are not statements of historical fact are “forward-looking statements” as that term is defined under federal securities laws, including, without limitation, all statements concerning Immucor’s expectations, beliefs, intentions or strategies for the future. Forward-looking statements may be identified by words such as “plans,” “expects,” “believes,” “anticipates,” “estimates,” “projects,” “will,” “should” and other words of similar meaning used in conjunction with, among other things, discussions of future operations, financial performance, product development and new product launches, FDA and other regulatory applications and approvals, market position and expenditures. Factors that could cause actual results to differ materially from those expressed in any forward-looking statement include the following: lower than expected market acceptance of the Company’s new Galileo Echo instrument; the decision of customers to defer capital spending; the inability of customers to efficiently integrate our instruments into their blood banking operations; increased competition in the sale of instruments and reagents, particularly in North America; product development or regulatory obstacles; the ability to hire and retain key managers; changes in interest rates; fluctuations in foreign currency conversion rates; the ability of the Company’s Japanese subsidiary to attain expected revenue, gross margin and net income levels; the outcome of any legal claims or regulatory investigations known or unknown; delays in regulatory approvals required to manufacture products previously produced in Houston; higher than expected manufacturing consolidation costs; the unexpected application of different accounting rules; and general economic conditions. Further risks are detailed in the Company’s filings with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on any forward-looking statements. Immucor assumes no obligation to update any forward-looking statements.
CONTACT: Rick Flynt, Immucor, Inc., +1-770-441-2051
Web site: http://www.immucor.com/
