>>SAN DIEGO--(BUSINESS WIRE)--Oct. 24, 2002--Invitrogen Corp. (Nasdaq:IVGN - News) today announced results for the quarter and nine months ended Sept. 30, 2002.
Revenues for the third quarter were $162.6 million, an increase of 4% over the $156.0 million recorded for the third quarter of 2001. Net income for the quarter ended Sept. 30, 2002 was $14.9 million, or $0.28 per share, which compares to a net loss of $37.4 million, or $0.71 per share, in the comparable quarter of 2001. The single largest factor contributing to the change from a loss in last year's quarter to a gain in this year's quarter was the implementation of FAS No. 142, under which goodwill is no longer amortized. The company has regularly reported pro forma results which exclude merger related amortization and business integration costs. Third quarter pro forma net income was $24.8 million, or $0.46 per share, compared with pro forma net income and earnings per share in the third quarter of 2001 of $22.7 million and $0.42, respectively.
Revenues for the nine months ended Sept. 30, 2002 were $486.8 million, an increase of 2% over the $476.0 million recorded for the same period in 2001. Net income for the nine months ended Sept. 30, 2002 was $37.5 million, or $0.70 per share, which compares to a net loss of $112.1 million, or $2.14 per share, in the comparable period in 2001. Pro forma net income for the nine months ended Sept. 30, 2002 was $76.9 million, or $1.41 per share, compared with pro forma net income and earnings per share for 2001 of $72.2 million and $1.34, respectively.
The company's program to exit low-margin, low-growth products acquired in the Life Technologies merger is now largely completed. Third quarter 2002 revenues included $0.4 million for products that the company began discontinuing after its merger with Life Technologies compared with $8.4 million for these same products in the third quarter of 2001. Revenues for continuing products increased 10% in the third quarter of 2002. Excluding the favorable impact of foreign currency translation effects, third quarter 2002 revenues from continuing products increased 7%.
The following revenue discussion is based on continuing products and is on a currency-comparable basis so as to exclude the effect of discontinued products and currency rate changes. Sales of molecular biology products increased 6% in the third quarter of 2002 compared with the same period in 2001. Continuing strong growth in molecular biology kits and reagents was offset by continuing weakness in the oligonucleotide and services businesses. Cell culture revenues increased 11% in the third quarter. Cell culture sales for research applications were strong during the quarter and benefited from higher selling prices for serum products.
Third quarter 2002 gross margins were 58.5%, compared with 56.2% in the third quarter of last year. The improvement over the past year reflects the company's success in exiting low margin businesses, increasing selling prices and containing costs.
Third quarter 2002 results included $0.2 million for business integration costs. The company has now completed its planned restructuring activities associated with the Life Technologies merger. Future restructuring costs associated with the Huntsville closure are expected to be minimal, unless actual proceeds from the sale of real estate in Huntsville are significantly different than the company's current estimates.
Net other income was $1.7 million in the third quarter of 2002, compared with $3.0 million in the third quarter of the previous year. Net other income for the nine months ended Sept. 30, 2002 was $1.7 million compared with $11.4 million for the same period in 2001. Interest income was higher in 2002 due to higher investment balances, somewhat offset by lower interest rates in 2002. Interest expense was higher in 2002 due to the issuance of $500 million in subordinated convertible debentures in December 2001. The second quarter of 2002 includes a $0.5 million loss on the sale of our Serva subsidiary. The first and second quarters of 2001 included a $1.3 million gain on the sale of a product line and a $1.0 million gain on the sale of a facility in Europe, respectively.
The company acquired 393,000 shares of its common stock as of Sept. 30, 2002 under its recently announced share repurchase program. Repurchases during the third quarter were made at an average cost of $33.98 representing $13 million. The company has continued making purchases under this program in the fourth quarter. Total purchases under this program now stand at 1.3 million shares representing approximately $42 million.
Cash flows from operating activities were $40 million during the third quarter of 2002, increasing operating cash flows for the first nine months of 2002 to $103 million. Purchases of property, plant and equipment were $12 million in the third quarter bringing year to date 2002 capital expenditures to $43 million.
Conference Call and Financial Outlook for 2002
The company will discuss its third quarter 2002 results and its business outlook on its conference call at 5 p.m. Eastern Time today. Interested parties can participate in the call by dialing 973/582-2751 after 4:50 p.m. Eastern Time. A replay of the call will be available until Oct. 31, 2002 by dialing 973/341-3080 and using access code 3531727.<<
snipped safe harbor and numbers, which were too extensive to post.
Still using a toll number and no webcast, the jerks. Growth sluggish.
Cheers, Tuck |