WALTHAM, Mass., July 29 /PRNewswire-FirstCall/ -- Inverness Medical Innovations, Inc. , a global leader in rapid point-of-care diagnostic products, today announced its financial results for the quarter ended June 30, 2008.
In the second quarter of 2008, the Company recorded net revenue of $401.1 million compared to net revenue of $155.0 million in the second quarter of 2007. The revenue increase was primarily due to increased product and service revenue in our Professional Diagnostics segment which grew from $93.1 million in the second quarter of 2007 to $250.4 million in 2008, principally as a result of businesses acquired which contributed $147.0 million of the increased product and service revenue. Also contributing to the net revenue increase was product and service revenue provided by our newly formed Health Management segment totaling $92.5 million in the second quarter of 2008.
For the second quarter of 2008, the net loss prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) was $30.3 million, or $0.43 per diluted common share, compared to net loss of $54.7 million, or $1.17 per diluted common share, for the second quarter of 2007. The Company reported adjusted cash basis net income of $32.7 million, or $0.37 per diluted common share, for the second quarter of 2008, compared to adjusted cash basis net income of $11.8 million, or $0.24 per diluted common share, for the second quarter of 2007. Included in our adjusted cash basis results for the second quarter of 2008 was a $13.8 million charge associated with an arbitration decision, or $8.6 million net of tax charge, resulting in a $0.10 per diluted share impact, partially offset by $2.9 million of income associated with a favorable settlement of a prior year’s royalty dispute collected during the quarter, or $2.5 million net of tax benefit, resulting in a $0.03 per diluted share impact.
The Company’s GAAP results for the second quarter of 2008 include amortization of $55.0 million, $23.6 million of restructuring charges, $7.2 million of stock-based compensation expense and a $0.3 million charge related to the write-up to fair market value of inventory acquired in connection with the acquisitions of Panbio Limited and BBI Holdings Plc. GAAP results for the second quarter of 2007 include amortization of $10.1 million, a $0.4 million restructuring charge, $47.3 million of non-cash stock-based compensation expense, of which $45.2 million relates to costs associated with stock option acceleration and conversion in connection with our acquisition of Biosite, Inc., a $1.2 million charge related to the write-up to fair market value of inventory acquired in connection with our accounting for the Biosite acquisition and $15.4 million of deferred financing costs and repayment premium related to the repayment of outstanding debt in conjunction with our financing arrangements related to our Biosite acquisition, offset by a $1.9 million foreign exchange gain on settlement of intercompany notes. These amounts, net of tax, have been excluded from the adjusted cash basis net income per common share 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 loss 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 29, 2008, 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 can be accessed by dialing 973-582-2700 (domestic and international), an access code is not required, or via a link on the Inverness website at www.invernessmedical.com. It is also available via link at http://audioevent.mshow.com/346155/ using Real Player or Windows Media. An on-demand webcast of the call will be available at the Inverness website (www.invernessmedical.com/News.cfm) two hours after the end of the call and will be accessible for 30 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 same website beginning shortly before the conference call and will continue to be available on this website for 30 days.
For more information about Inverness Medical Innovations, please visit our website at http://www.invernessmedical.com.
By developing new capabilities in near-patient diagnosis, monitoring and health management, Inverness Medical Innovations enables individuals to take charge of improving their health and quality of life. A global leader in rapid point-of-care diagnostics, Inverness’ products, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, drugs of abuse and women’s health. Inverness is headquartered in Waltham, Massachusetts.
CONTACT: Doug Guarino, Director of Corporate Relations, or Jon Russell,
Vice President of Finance, both of Inverness Medical Innovations,
+1-781-647-3900
Web site: http://www.invernessmedical.com/
http://www.invernessmedical.com/News.cfm/
