WALTHAM, Mass., Oct. 31 /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 September 30, 2007.
In the third quarter of 2007, the Company recorded net revenue of $237.6 million compared to net revenue of $144.9 million in the third quarter of 2006. The revenue increase was primarily due to increased sales in our Professional Diagnostic segment contributed by businesses acquired, which contributed $94.3 million of the increased product revenue, offset by a decrease of $17.1 million in revenue as compared to the prior year’s quarter as a result of our second quarter of 2007 formation of a joint venture for our Consumer Diagnostics business with the Procter & Gamble Company.
For the third quarter of 2007, the net loss prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) was $180.6 million, or $3.74 per diluted common share, compared to net loss of $9.7 million, or $0.27 per common share, for the third quarter of 2006. The Company reported adjusted cash basis net income of $14.9 million, or $0.29 per diluted common share, for the third quarter of 2007, compared to adjusted cash basis net income of $5.7 million, or $0.15 per diluted common share, for the third quarter of 2006.
The Company’s GAAP results for the third quarter of 2007 include amortization of $19.9 million, the write-off of $169.0 million of in-process research and development acquired in connection with the Biosite acquisition, $0.5 million of restructuring charges, $3.3 million of stock-based compensation expense, and a $6.3 million charge related to the write-up to fair market value of inventory acquired in connection with the Biosite and Cholestech acquisitions. GAAP results for the third quarter of 2006 include amortization of $6.4 million, the write-off of $5.0 million of in-process research and development acquired in connection with the Clondiag acquisition, a $1.2 million restructuring charge, $1.3 million of non-cash stock-based compensation expense and $1.3 million of prepayment penalties and a write-off of debt origination costs upon early extinguishment of related debt. 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, October 31, 2007, 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://orion.calleci.com/servlet/estreamgetevent?id=8129&folder=webstream using Real Player or via link at http://orion.calleci.com/servlet/estreamgetevent?id=8128&folder=webstream using Windows Media. A telephone replay of the call will be available by dialing 973-341-3080 (domestic and international) with an access code of 9393875. That replay will be available until 12:00 midnight (Eastern Time) on November 3, 2007. 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 for Inverness Medical Innovations,
+1-781-647-3900
Web site: http://www.invernessmedical.com//
