Inverness Medical Innovations Inc. (IMA), a manufacturer of medical diagnostic products, vitamins and nutritional supplements, reported a profit in its first quarter, compared to prior year's loss, helped by higher revenues. On an adjusted cash basis, earnings per share grew 27%, and topped market projections.
The Waltham, Massachusetts-based company's first-quarter net income was $6.29 million, compared to net loss of $4.17 million a year ago.
Meanwhile, net income available to common stockholders was $771 thousand or $0.01 per share, excluding preferred stock dividends of $5.52 million. In the same period a year ago, the company's net loss available to common stockholders was $4.17 million or $0.05 per share.
The latest quarter results included adjustments of $49.80 million, comprising amortization, restructuring charges, stock-based compensation expense and acquisition-related costs. Meanwhile, prior year results included one-time charges of $43.29 million.
Excluding one-time items, adjusted cash basis net income was $56.09 million, and net income available to common stockholders was $50.57 million or $0.61 per share, in comparison to prior year's net income of $39.11 million or $0.48 per share.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.57 per share for the quarter. Analysts' estimates typically exclude special items.
In the first quarter, the company's net revenue grew to $443.86 million $372.23 million last year, but missed Wall Street analysts' expected revenues of $455.91 million.
The company noted that higher revenue in the quarter was primarily due to $76.9 million of incremental revenue provided by Health Management segment principally as a result of incremental revenues from recently acquired businesses, along with $10.2 million of incremental revenue contributed by other recently acquired businesses. These were partly offset by the adverse impact of foreign currency translation which reduced reported revenues by $16.6 million.
Net product sales and services revenue increased to $434.80 million from last year's $361.36 million, while License and royalty revenue fell to $9.06 million from $10.87 million a year ago.
Sales of influenza tests in North America declined $12.4 million from last year, due to a relatively mild flu season. Excluding the impact of this reduction, the currency adjusted organic growth rate in the company's Professional Diagnostics segment was approximately 8%.
Gross profit rose to $234.20 million from $180.39 million last year, and gross margin grew to 53% from prior year's 48%. On an adjusted basis, gross profit was $246.62 million or 56% of total revenues, higher than last year's $204.00 million or 55% of total revenues.
Operating income in the quarter increased to $28.15 million from $14.78 million in 2008, and adjusted operating income rose to $101.20 million from $78.099 million last year.
IMA is currently trading at $29.03, up $1.41 or 5.10%.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.