Nucleic acid probe-based products manufacturer Gen-Probe Inc. (GPRO) said Thursday that second quarter profit declined from last year, due to expenses related to acquisition of Tepnel, and higher expenses. In addition, the company tightened its financial outlook for fiscal 2009. Following the news, the company's shares lost more than 8% in the after-hours trading.
The San Diego, California-based company posted GAAP net income of $19.8 million or $0.38 per share, down from $24.8 million or $0.45 per share in the prior year quarter. The result for the latest quarter included a $4.4 million or $0.07 per share of expenses, related to the company's acquisition of Tepnel.
Excluding items, non-GAAP net income was $23.2 million or $0.45 per share, compared to $24.8 million or $0.45 per share in the year-ago quarter. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.43 per share for the second quarter. Analysts' estimates typically exclude special items.
Total revenues for the second quarter increased 1% to $120.5 million from $119.8 million in the same quarter of last year. Fifteen analysts had a consensus revenue estimate of $123.16 million for the second quarter.
Product sales grew 3% to $116.8 million from $113.7 million in the previous year quarter. The company noted that the stronger U.S. dollar reduced product sales growth by an estimated 4%.
Gen-Probe's clinical diagnostics sales grew 19% to $67.3 million in the second quarter of 2009, due to revenue associated with Tepnel's transplant diagnostics and genetic testing products. On a constant currency basis, sales grew by 21%.
Blood screening product sales for the second quarter fell 19% to $45.8 million, hurt by lower product shipments to the company's commercial partner, Novartis Diagnostics. On a constant currency basis, sales slipped by 13%.
Collaborative research revenues dropped 53% to $2.2 million from $4.7 million, while royalty and license revenues remained flat at $1.5 million.
Research and development expenses in the second quarter fell 11% to $26.1 million from $29.4 million in the prior year quarter. Total operating expenses increased to $97.3 million from $87.0 million in the second quarter of 2008.
For the first-half of 2009, Gen-Probe reported net income of $45.6 million or $0.87 per share, compared to $56.7 million or $1.03 per share in the previous year period.
On a non-GAAP basis, net income rose to $50.2 million or $0.96 per share from $56.7 million or $1.03 per share in the prior year period.
Total revenues for the year-to-date period decreased 2% to $236.7 million from $242.4 million in the year-ago period.
For fiscal 2009, Gen-Probe now expects GAAP earnings of $1.73 to $1.85 per share, non-GAAP earnings of $1.85 to $1.95 per share, and total revenues in the range of $490 million to $503 million. Street currently expects earnings of $1.93 per share for the year on revenue of $501.04 million.
Earlier, the company estimated GAAP earnings of $1.72 to $1.90 per share, non-GAAP earnings of $1.85 to $2.00 per share, and total revenues in the range of $490 million to $510 million.
Gen-Probe closed Thursday's regular trading session at $42.06, up 41 cents. However, in the after-hours, the shares lost $3.76 or 8.94%.
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