SUNNYVALE, Calif., July 20 /PRNewswire-FirstCall/ -- Molecular Devices Corporation (Nasdaq: MDCC - News) today announced record revenues and earnings for the quarter ended June 30, 2006.
Revenues for the quarter were a record $47.4 million, or an increase of 6% compared to the same period last year. On a GAAP basis, operating income was $2.0 million in the second quarter of 2006. GAAP operating income for the second quarter included a $4.3 million non-cash charge associated with the write-off of acquired in-process research and development related to the acquisition of the Arcturus Laser Capture Microdissection business and non-cash stock compensation expense of $1.3 million associated with the Company’s adoption of Statement of Financial Accounting Standards No. 123R. On a non-GAAP basis, excluding the effects of the write-off of acquired in-process research and development and the non-cash stock compensation expense, operating income for the second quarter of 2006 was $7.6 million, or an increase of 26% compared to the same period last year.
On a GAAP basis, fully diluted losses per share for the second quarter of 2006 were $0.03. On a non-GAAP basis, excluding the write-off of acquired in-process research and development and the non-cash stock compensation expense, fully diluted earnings per share increased 33% to $0.28 in the second quarter of 2006 from $0.21 in the same period last year. A table reconciling operating income and fully diluted earnings per share on a GAAP and non-GAAP basis is provided immediately following the Condensed Consolidated Balance Sheets.
“We saw solid growth in our SpectraMax® and Meta life sciences imaging product lines during the quarter,” stated Joseph D. Keegan, Ph.D., Molecular Devices’ President and Chief Executive Officer. “Unfortunately, this growth was offset by declines in our Drug Discovery Imaging and Genomics product lines. Results from our recently acquired Laser Capture Microdissection business met our expectations during the quarter. We continue to believe that our worldwide life sciences market remains stable, but we have become more cautious on the outlook for drug discovery as a result of the weakness in imaging.”
The Company established guidance for the third quarter of 2006 and updated guidance for the full year 2006. For the third quarter of 2006, the Company anticipates revenues of $48 to $52 million, GAAP fully diluted earnings per share of $0.22 to $0.26 and non-GAAP fully diluted earnings per share of $0.27 to $0.31 excluding $0.05 of non-cash stock compensation expense. For the full year 2006, the Company anticipates revenues of $190 to $198 million, GAAP fully diluted earnings per share of $0.71 to $0.79 and non-GAAP fully diluted earnings per share of $1.10 to $1.18 excluding $0.20 per share of non-cash stock compensation expense, $0.06 per share gain on the sale of an equity investment and $0.25 per share write-off of acquired in-process research and development.
Conference Call Information
A conference call to discuss our second quarter results, 2006 guidance and other matters related to our business is scheduled for Thursday, July 20, 2006 at 1:30 p.m. Pacific (4:30 p.m. Eastern). Interested parties can participate in the call by dialing 800-257-3401 (domestic) or 303-205-0033 (international). Replay dial-in numbers are 888-203-1112 (domestic) and 719-457-0820 (international), and the access code for the replay is 3375475.
Investors can also access a live web-cast of the call through a link posted on the investor page on Molecular Devices’ website (www.moleculardevices.com). A replay of the web-cast will be available at this location from July 20, 2006 to such time as the Company reports its financial results for the third quarter of 2006.
About Molecular Devices Corporation
Molecular Devices Corporation is a leading supplier of high-performance bioanalytical measurement systems that accelerate and improve drug discovery and other life sciences research. The Company’s systems and consumables enable pharmaceutical and biotechnology companies to leverage advances in genomics, proteomics and parallel chemistry to facilitate the high-throughput and cost-effective identification and evaluation of drug candidates. The Company’s solutions are based on its advanced core technologies that integrate its expertise in engineering, molecular and cell biology and chemistry. Molecular Devices enables its customers to improve research productivity and effectiveness, which ultimately accelerates the complex process of discovering and developing new drugs.
This press release contains “forward-looking” statements, including statements related to the markets for our products and future revenues and earnings. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “will,” and similar expressions are intended to identify forward-looking statements. There are a number of important factors that could cause the results of Molecular Devices Corporation to differ materially from those indicated by these forward-looking statements, including, among others, risks related to variations in the amount of time that it takes for the Company to sell its products and collect accounts receivable, the timing of customer orders and the Company’s dependence on orders that are shipped in the same quarter, which gives the Company limited visibility of future product shipments, risks related to increased competition, risks associated with the Company’s need to develop new and enhanced products and other risks detailed from time to time in the Company’s SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2006. Molecular Devices Corporation does not undertake any obligation to update forward-looking statements.
