Immucor, Inc. (Immucor) has declared revenues of $73 million for the second quarter of fiscal 2009, up 18%, compared with the revenues of $61.9 million in the year-ago quarter. It has also reported net income of $17.3 million, or $0.24 per diluted share, for the second quarter of fiscal 2009compared with the net income of $16.2 million, or $0.23 per diluted share, in the year-ago quarter.
“Our second quarter results demonstrate the strength of our business model with its strong recurring revenue and cash flow,” stated Gioacchino De Chirico, president and chief executive officer. “We have what I believe to be the leading technology for automating the blood bank, which positions us well as the market moves towards automation.”
Six-Month Results
For the first six months of fiscal 2009, revenue was $146.2 million, compared with $125.6 million in the prior year period. Gross margin was 73.2%, up from 69.9% in the prior year period. Net income was $37.3 million, or $0.52 per fully diluted share, compared with $33.9 million, or $0.48 per fully diluted share in the prior year period. Cash flow from operations was $32.3 million for the first six months of fiscal 2009, compared with $26.6 million for the first six months of fiscal 2008.
Consolidated revenue increased approximately $11.1 million, or 18%, over the second quarter of fiscal 2008, driven by both price and instrument volume increases in the US as well as increased sales outside of the US price increases accounted for approximately two-thirds of the total consolidated revenue increase. Revenue in the quarter was negatively impacted by approximately $1.1 million from foreign currency translation as compared with the second quarter of fiscal 2008.
The year-over-year improvement in consolidated gross margins was driven by price increases in the US as well as instrument product mix with fewer sales that required the instrument to be expensed at time of sale.
Operating Expenses
Operating expenses for the second quarter increased approximately $7.2 million, or 39%, over the prior year quarter primarily attributable to the BioArray acquisition as well as investments being made in the French and the UK markets to sell our products directly to the end user.
“On a year-to-date basis, we have received 176 Echo orders, which demonstrates the tremendous market acceptance of our instrument,” stated Dr. De Chirico. “Of the cumulative 430 Echo orders, approximately 193 were generating reagent revenue, which is an increase of 64 instruments in the quarter.”
Raising 2009 EPS Guidance
The company continues to expect revenue for the fiscal year ending May 31, 2009, to range from $292 million to $300 million, unchanged from the company’s previous estimate. Gross margin is now expected to be in the range of 71.0% to 73.0%, compared with the company’s previous guidance of 70.0% to 71.0%. Fully diluted earnings per share are now expected to be in the range of $0.97 to $1.02 for the fiscal year, compared with the company’s previous estimate of $0.94 to $0.98.
“In summary, our business is doing well in this troubled economic environment because of our strong product offering as well as our strong balance sheet and cash flow,” stated De Chirico. “I am pleased with our projected performance for the remainder of fiscal 2009.”