Gen-Probe Incorporated (Gen-Probe), an in vitro diagnostics company, has reported total revenues of $116.1 million for the first quarter of 2009, compared with the total revenues of $122.5 million in the year-ago quarter. It has reported net income of $25.7 million, or $0.48 per diluted share, for the first quarter of 2009, compared with net income of $31.8 million, or $0.58 per diluted share, in the year-ago quarter.
Updated 2009 Financial Guidance
We are updating our guidance based on our solid first-quarter performance and our Tepnel acquisition, said Herm Rosenman, the Company’s senior vice president of finance and chief financial officer. We continue to expect solid growth from our STD franchise, new products and recently acquired business, although we anticipate that blood screening growth will be pressured by the strong dollar and increasing competitive pressures.
Looking forward to fiscal 2009, the company now expects total revenue to be in the range of $490 million to $510 million. Earlier, the company anticipated total revenues of $460 million to $490 million for fiscal 2009. Non GAAP net earnings are anticipated to be in the range of $1.85 to $2.00 per share and GAAP net earnings of $1.72 to $1.90 per share.
Gen-Probe posted good financial results in the first quarter of 2009, highlighted by a new record in clinical diagnostics product sales, despite significant foreign exchange headwinds, said Henry L. Nordhoff, the company’s chairman and chief executive officer. In recent weeks, we also completed our Tepnel acquisition and decided to begin a U.S. clinical trial of our PCA3 prostate cancer test, both of which we expect to drive future growth.
As anticipated, total revenues and net income declined in the first quarter of 2009 compared to the prior year period because the company reported $16.4 million of revenue from Bayer in the first quarter of 2008. This non-recurring revenue, which added $0.20 to EPS in the prior year period, represented the third and final payment due to Gen-Probe in connection with the 2006 settlement of the companies’ patent infringement litigation.
For the first quarter of 2009, product sales were $112.5 million, against $101.5 million in the prior year period, an increase of 11%. Compared to the first quarter of 2008, the stronger US dollar reduced product sales growth by an estimated 4%. Total revenues for the first quarter of 2009 were $116.2 million, against $122.6 million in the prior year period, a decrease of 5%. Net income was $27.0 million ($0.51 per share) on a non-GAAP basis in the first quarter of 2009, against $31.9 million ($0.58 per share) on a GAAP basis in the prior year period, a decrease of 15% (12% per share). Gen-Probe’s non-GAAP results for the first quarter of 2009 exclude $1.6 million ($0.02 per share) of expenses related to the company’s acquisition of Tepnel. Including these expenses, and on a GAAP basis, net income in the first quarter of 2009 was $25.7 million ($0.48 per share).