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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