LANSING, Mich., Dec. 18 /PRNewswire-FirstCall/ -- Neogen Corporation announced today that its net income for the second quarter of FY 2010, which ended Nov. 30, increased 18% from the previous year’s second quarter. Adjusted for a 3-for-2 stock split effective Dec. 15, net income in the quarter rose to $0.20 per share, compared to the prior year’s $0.17. Neogen’s second quarter net income of $4,610,000 set another quarterly record for the 27-year-old company.
With its 3-for-2 stock split, Neogen’s shareholders of record on Nov. 30 received one additional share of stock for each two shares held. The stock dividend was paid in newly issued common stock on Dec. 15. Neogen had 15,000,000 shares of common stock outstanding prior to the split, and now has 22,500,000 shares of common stock outstanding. All share and per-share numbers in this news release reflect the split as if it had taken place at the beginning of the periods presented.
The second quarter was the 67th consecutive profitable quarter from operations for the company, and the 71st quarter of the past 76 quarters to show increased revenues as compared with the previous year.
Operating income as a percentage of sales increased to 20.5% in the current quarter from the previous year’s comparable quarter of 18.8%. On a six-month basis, operating income is 21.0% of sales compared to 19.2% in the prior year. Gross margins in the quarter improved to 52.5% of sales in FY 2010, compared to 51.7% in the prior year’s second quarter.
Neogen’s Food Safety Division led the company’s second quarter revenue increase, with sales up 20% from $15,379,000 in FY 2009 to $18,446,000 in FY 2010. Year-to-date, the Food Safety Division’s revenues were up 16% to $35,921,000 for FY 2010. Sales growth in Food Safety was broad-based across multiple market segments and product lines for the quarter and on a year-to-date basis. Neogen’s line of drug residue tests, led by sales of tests for dairy antibiotic residues increased significantly due to increased sales of higher value test kits, overall unit volume growth, and a relatively positive currency exchange rate for test kits sold in Euros.
Neogen’s Animal Safety Division second quarter revenues increased 6% to $16,805,000, compared to $15,808,000 in the previous fiscal year. For FY 2010’s first six months, the Animal Safety Division’s sales increased 9% over the comparable period last year to $31,677,000. Sales of Neogen’s rodenticides, cleaners and disinfectants in the quarter increased 22% over the prior year primarily due to successful marketing programs for rodenticide products and a strong increase in domestic sales of disinfectants. Sales of the company’s Kare line of companion animal products sold through ethical distribution channels also exhibited strong growth for the quarter.
Neogen’s acquisition of the BioKits food safety business of Gen-Probe Incorporated was completed on the first day of Neogen’s third quarter, Dec. 1. The acquisition includes more than 50 test kits for food allergens, meat and fish speciation, and plant genetics. The U.K.-based business is now a part of Neogen Europe Ltd., which is headquartered in Ayr, Scotland.
CONTACT: Richard R. Current, Vice President and CFO, +1-517-372-9200
Web site: http://www.neogen.com/
