(RTTNews) -  Thursday, diagnostic product maker Gen-Probe Inc. (GPRO: News ), reported a decline in third quarter profit on higher expenses. Revenues for the quarter improved 1%, impacted by a stronger U.S. dollar that reduced sales growth by 2%. Product sales, however, registered a record 10% growth during the quarter. Looking ahead, the company tightened its full year outlook.

Gen-Probe's net income dropped to $22.20 million or $0.44 per share from $29.08 million or $0.52 per share in the same period last year.

Non-GAAP net income for third quarter was $23.78 million or $0.47 per share, compared to $29.1 million or $0.52 per share in the year ago quarter.

On average, nineteen analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted earnings excluded $1.58 million or $0.03 per shaer after tax charge related to the company's acquisitions of Tepnel and Prodesse and the industrial spin-off. The year-ago quarter included a one-time milestone payment of $10.0 million.

The San Diego, California-based company's total revenues for the quarter was $122.70 million, up from $121.18 million for the prior year quarter. Eighteen analysts had consensus revenue estimate of $123.31 million for the quarter.

Product sales for the quarter grew to $118.95 million from $108.25 million in the same period last year. Collaborative research revenue dropped to $2.00 million from $11.34 million a year earlier. Royalty and license revenue rose to $1.75 million from $1.58 million last year.
On product basis, clinical diagnostics segment grew by 25% to $69.6 million from $55.5 million in the year-ago period, helped by revenues from Tepnel's transplant diagnostics, genetic testing products and continued strong growth of the APTIMA Combo 2 assay.

Blood screening revenues dropped by 14% to $45.4 million from $52.7 million in the year earlier period, impacted by $7.9 million of lower product shipments to Novartis.

Total operating expenses rose to $93.67 million from $78.81 million last year. Cost of product sales increased to $36.34 million from $30.68 million for the same period last year, while research and development expenses were $27.46 million for the third quarter, up from $24.51 million last year.

Marketing and sales expenses for the quarter increased to $13.48 million from $10.71 million a year earlier. General and administrative expenses rose to $15.23 million from $12.91 million for the year-ago period.

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