CHATSWORTH, Calif.--(BUSINESS WIRE)--July 28, 2006--IRIS INTERNATIONAL, INC. (NASDAQ: IRIS - News), a manufacturer and marketer of automated IVD urinalysis systems and medical devices used in hospitals and clinical reference laboratories worldwide, today announced that it has prepared its allocation of the purchase price paid to acquire Leucadia Technologies, Inc. on April 3, 2006. Based on the preliminary analysis of an independent valuation firm, the Company has established the following allocation:
Cash $ 2,000 Fixed Assets 21,000 Core Technology 1,790,000 Goodwill 2,231,000
---------- Total Assets $4,044,000 ========== Deferred Tax Liability $ 662,000 ========== In-Process Research and Development Expense $5,180,000 ==========
The Core Technology intangible asset amount reflects the valuation of the two completed technology platforms acquired with Leucadia acquisition: 1) Nucleic Acid Detection Immuno Assay (NADIA), a diagnostic method at least 10,000 times more sensitive than current immunoassay technology, and 2) a novel separation and concentration technology which uses a proprietary method to develop albumin micro-bubbles coated with antibodies designed to attach and float specific cell types.
In accordance with FASB Interpretation No. 4, Applicability of FASB Statement No.2 Business Combinations Accounted for by the Purchase Method, the Company is required to write off certain research and development assets acquired in the acquisition as In-Process Research and Development expense as they do not meet the criteria to record a Core Technology intangible asset. The In-Process Research and Development expense amount reflects the valuation of the cancer and bacteria detection applications currently under development. This nonrecurring expense will be recorded in the second quarter results of operation and will reduce fully diluted net earnings per share by $0.28 in the quarter. The impact of this non-recurring item was not included in the Company’s previously issued net earning per share guidance for fiscal 2006.
The Company expects to finalize the allocation of the purchase price by the end of the third quarter and the preliminary allocation may change.
THE COMPANY
IRIS International, Inc. (www.proiris.com), based in Chatsworth, Calif., is a leader in automated urinalysis technology with systems in major medical institutions throughout the world. The Company’s Sample Processing business unit (formerly the StatSpin® subsidiary), based in Westwood, Mass., manufactures innovative centrifuges and blood analysis products. Advanced Digital Imaging Research, LLC (ADIR), based near Houston, Texas, is the Company’s imaging research and development subsidiary. The IRIS Molecular Diagnostics (IMD) Subsidiary develops innovative ultra-sensitive diagnostics and sample processing products with applications in the urinalysis, oncology and infectious disease markets.
SAFE HARBOR PROVISION
This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company’s views on future financial performance, market growth, capital requirements, new product introductions and acquisitions, and are generally identified by phrases such as “thinks,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management’s own knowledge and assessment of the Company’s industry, R&D initiatives, competition and capital requirements. Other factors and uncertainties that could affect the Company’s forward-looking statements include, among other things, the following: identification of feasible new product initiatives, management of R&D efforts and the resulting successful development of new products and product platforms; acceptance by customers of the Company’s products; integration of acquired businesses; substantial expansion of international sales; reliance on key suppliers; the potential need for changes in long-term strategy in response to future developments; future advances in diagnostic testing methods and procedures; potential changes in government regulations and healthcare policies, both of which could adversely affect the economics of the diagnostic testing procedures automated by the Company’s products; rapid technological change in the microelectronics and software industries; and competitive factors, including pricing pressures and the introduction by others of new products with similar or better functionality than our products. These and other risks are more fully described in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: IRIS International, Inc. Don Mueller, 818-709-1244 x 7123 or The Wall Street Group, Inc. Ron Stabiner, 212-888-4848
Source: IRIS International, Inc.
