Exhibit 99.1
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| News Release | |  |
Contacts Investors William Craumer 650.638.6382 craumewc@appliedbiosystems.com | | an Applera Corporation Business 850 Lincoln Centre Drive Foster City, CA 94404-1128 U.S.A. T (650) 570-6667 F (650) 572-2743 www.appliedbiosystems.com |
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Investors (Europe) | | Media |
Katherine Genis | | Peter Dworkin |
+44 (0)20 8780 5029 | | 650.554.2479 |
katherine.genis@eur.appliedbiosystems.com | | dworkipg@appliedbiosystems.com |
APPLIED BIOSYSTEMS REPORTS FISCAL 2008
SECOND QUARTER RESULTS
| | • | | Q2 net revenues increased 6% to $561.9 million |
| | • | | Q2 fully diluted GAAP EPS of $0.49 |
| | • | | Q2 non-GAAP EPS of $0.50 |
FOSTER CITY, CA, January 24, 2008–Applied Biosystems Group (NYSE: ABI), an Applera Corporation business, today reported net revenues of $561.9 million for the second quarter of fiscal 2008, an increase of approximately 6% over the prior year quarter revenues of $530.0 million. The net effect of foreign currency on net revenues was a favorable impact of approximately 4% compared to the prior year quarter.
For the second quarter of fiscal 2008, the Group reported net income of $86.3 million, or $0.49 per share, compared to net income of $74.8 million, or $0.39 per share, for the prior year quarter. Compared to the prior year quarter, the net effect of foreign currency was a benefit of approximately $0.05 per share. Results in both periods were affected by the specified items described in the reconciliation below. Earnings per share (EPS) on a non-GAAP basis, excluding the items specified below, were $0.50, a 35% increase compared to $0.37 for the prior year quarter. The Group’s accelerated share repurchase (ASR) transaction reduced quarterly per-share results by approximately two tenths of one cent. All per share amounts refer to Applera Corporation-Applied Biosystems Group Common Stock.
“During the second fiscal quarter we were pleased with our ability to deliver very strong earnings growth,” stated Tony L. White, Chief Executive Officer, Applera Corporation. “We have freed
up costs in the business, some of which we intend to redeploy in our growth areas in subsequent quarters. While the magnitude of the margin and earnings improvement might not be fully sustainable due to some factors that may not repeat in future quarters, it is clear that we are moving aggressively to expand our operating margins and mitigate the effects of this period of modest revenue growth.”
Mark Stevenson, President and Chief Operating Officer of Applied Biosystems, commented further, “The strong market focus we have developed continued to drive favorable growth in our consumables product lines and in the Real-Time PCR /Applied Genomics revenue category. We have experienced strong interest in our SOLiD™ next-generation sequencing platform and will start booking revenue in the current quarter, which ends on March 31, from systems we shipped during the second quarter. As we continue development of this new technology, our priority is to support existing SOLiD system customers and ensure platform robustness, so we are limiting shipments to new customers to make sure we can provide the level of service and support that customers expect from Applied Biosystems. This is similar to the approach taken nearly a decade ago when we launched the ABI Prism® 3700 DNA Analyzer, the platform which evolved to become the mainstay of the human genome sequencing project.”
During the second quarters of both fiscal 2008 and 2007, the Group recorded items that affected the comparability of results. For the second quarter of fiscal 2008, the Group recorded pre-tax items that decreased income before taxes by approximately $2.9 million. These items included severance charges of $2.9 million, amortization expense of $2.6 million related to acquired intangibles and gains on sales of investments of approximately $2.6 million. The second quarter of fiscal 2008 also included a tax charge of $0.5 million related to foreign tax settlements.
During the second quarter of fiscal 2007, the Group recorded pre-tax items that increased income before taxes by approximately $4.9 million. These items included gains of $7.8 million related to legal settlements and amortization expense of $2.9 million related to acquired intangibles.
The following table summarizes the impact of these items on EPS calculations:
Reconciliation of GAAP amounts to Non-GAAP amounts
(Dollar amounts in millions)
| | | | | | | | | | | | | |
| | | Three months ended December 31, 2007 | | Three months ended December 31, 2006 |
| | | GAAP
amounts | | Adj. | | | Non-GAAP
amounts | | GAAP
amounts | | Adj. | | Non-GAAP amounts |
Operating income | | $121.7 | | $ (5.5 | ) | | $127.2 | | $101.0 | | $ 4.9 | | $ 96.1 |
Income before income taxes | | 125.4 | | (2.9 | ) | | 128.3 | | 105.3 | | 4.9 | | 100.4 |
Provision for income taxes | | 39.1 | | (0.3 | ) | | 39.4 | | 30.5 | | 1.6 | | 28.9 |
Net income | | 86.3 | | (2.6 | ) | | 88.9 | | 74.8 | | 3.3 | | 71.5 |
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Earnings per share allocations(1) | | - | | - | | | - | | 0.2 | | 0.2 | | - |
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Adjusted net income
for earnings per share | | $ 86.3 | | $ (2.6 | ) | | $ 88.9 | | $ 75.0 | | $ 3.5 | | $ 71.5 |
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Total diluted earnings per share | | $ 0.49 | | (0.01 | ) | | $ 0.50 | | $ 0.39 | | $0.02 | | $ 0.37 |
(1) | Represents allocation of intercompany sales of assets and interperiod taxes to adjust net income for purposes of calculating earnings per share. |
Quarterly Financial Highlights
| | • | | Revenues by source and the change relative to the prior year quarter were: $233.3 million for Instruments, essentially flat with the prior year quarter; $230.6 million for Consumables, a 12% increase; and $98.0 million for Other Sources, including service and support, royalties, licenses and consulting, a 10% increase. |
| | • | | Revenues for major geographic regions and their change relative to the prior year quarter were: $215.5 million in the United States, essentially flat; $210.2 million in Europe, a 13% increase including favorable foreign currency effects of approximately 8%; $47.8 million in Japan, a 10% decrease which was net of favorable foreign currency effects of approximately 5%; and $60.3 million in Other Asia Pacific countries, a 15% increase including favorable foreign currency effects of approximately 2%. The Other Asia Pacific category now includes revenues from India and other countries in West Asia, which had previously been managed by our Europe region. Revenues from the prior year’s second quarter have been reclassified to reflect this change. |
| | • | | Gross margin in the second quarter of fiscal 2008 was 58.1%, versus 55.6% in the prior year quarter. The increase in gross margin was primarily driven by lower costs for enzymes and the favorable impact of currency. |
| | • | | Selling, general, and administrative (SG&A) expenditures in the second quarter of fiscal 2008 were $155.1 million, or 27.6% of revenues, compared to $147.5 million, or 27.8% of revenues, in the prior year quarter. The increase was primarily due to the unfavorable impact of currency and employee-related costs. |
| | • | | Research, development, and engineering (R&D) expenditures in the second quarter of fiscal 2008 decreased 12.8% to $44.4 million, or 7.9% of revenues, compared to $50.9 million, or 9.6% of revenues, in the prior year quarter. The decrease in R&D expenditures was primarily due to lower employee-related costs, the termination in June 2007 of a contract with the U.S. Department of Defense and the timing of R&D project expenses. |
| | • | | Cash flow from continuing operations was $128.8 million and capital expenditures were $10.6 million for the quarter. Depreciation and amortization expense was $19.6 million. As of the end of the quarter, cash and short term investments were $ 355.9 million, down from $494.5 million as of June 30, 2007. This decrease was largely a result of the $602 million payment to Morgan Stanley for the ASR transaction, a portion of which was funded with available cash and the balance of which was funded by $275.0 million in short-term debt. Of the original amount borrowed, there was $225.0 million outstanding at the end of the quarter. Accounts receivable were $411.0 million, representing 53 days sales outstanding, and inventory was $157.3 million, representing 3.5 months of inventory on hand. |
Recent Business Developments
| | • | | Morgan Stanley has exercised its option to settle the ASR transaction, referenced above, and will deliver to the company 1.9 million shares of Applied Biosystems stock. These new shares supplement the 16 million shares that were received in October. |
| | • | | Earlier in January, Applera management reiterated a preference of its Board of Directors to dissolve the current tracking stock structure and create separate, publicly traded companies for Applied Biosystems and Celera. Although no final decision has been reached, Applera expects to file a registration statement with the Securities and Exchange Commission (SEC) by the end of the current quarter in an effort to finalize a separation by June 30, the end of its 2008 fiscal year. |
| | • | | Also in January, Applied Biosystems launched its SOLiD system service provider program and named its first four participants. The program enables researchers who don’t own or can’t access SOLiD system technology an effective channel for generating high-quality genomic data at a reasonable cost and/or evaluating our next-generation sequencing technology prior to system purchase. |
| | • | | In December, the Board of Directors of Applera Corporation named Mark P. Stevenson a Senior Vice President of Applera and President and Chief Operating Officer of Applied Biosystems. |
| | • | | Also in December, the Group launched GeneMapper®ID-X, a powerful new software application designed to help forensic laboratories deliver faster DNA results by automating routine DNA data analysis, facilitating more efficient manual review of complex samples and improving the overall workflow of forensic analysis. GeneMapperID-X software is an expert system developed with feedback obtained from many of the more than a thousand forensic laboratories that Applied Biosystems supports worldwide. |
| | • | | In November, Applied Biosystems announced an exclusive agreement and collaboration with BioTrove, Inc. to deploy and market TaqMan® genotyping assays on BioTrove’s mid-density OpenArray platform, enabling customers to cost-effectively identify tens to hundreds of single nucleotide polymorphisms (SNPs) in thousands of samples. The product offering is expected to address commercial screening applications in human health and agriculture. |
Applied Biosystems Outlook
The Group believes that its fiscal year 2008 outlook and financial performance could be affected by a number of factors, including: the introduction, manufacturing ramp-up and adoption of new products including the SOLiD system; global economic uncertainty including the level of commercial investments in life science R&D and the level of government funding for life science research; legislation and funding for applications in the applied markets; the outcome of pending litigation matters; and competitive product introductions and pricing. Subject to the inherent uncertainty associated with these factors, Applied Biosystems has the following expectations for fiscal year 2008:
| | • | | Fiscal 2008 Revenue Growth Rate: The Group expects mid single digit growth assuming current exchange rates. Revenues are expected to be comparable to the prior year level for Instruments and to increase for Consumables. |
| | • | | Fiscal 2008 Growth by Product Category: The Group anticipates growth across all product categories with the exception of Other Product Lines, where we expect a decline. Quarterly year-over-year revenue changes may be different from our annual expectations due to a variety of factors, including the timing of customer orders and disbursements of government funding. |
| | • | | Fiscal 2008 Margins and Expenses: The Group expects gross margin improvement in fiscal 2008 compared to the fiscal 2007 gross margin of 55.3%. SG&A as a percent of total revenues is expected to be slightly higher than the prior year level of 28.3%. R&D as a percentage of total revenues is expected to be below the prior year level of 9.7%. The Group expects less quarter-to-quarter fluctuation in R&D and SG&A between quarters three and four than between quarters one and two; the average of R&D and SG&A as a percent of revenues in quarters one and two should be more informative about expense ratios for the remainder of the year than the ratios in either the first or second fiscal quarter alone. The Group expects an increase in operating margin in fiscal 2008 of approximately two hundred basis points compared to the operating margin of 17.2% in the prior year, excluding special items in both fiscal years as described in the Use of Non-GAAP Financial Information section below. |
| | • | | Fiscal 2008 Effective Tax Rate: The Group expects the effective annual tax rate used to calculate non-GAAP financial measures to be approximately 31%, compared to approximately 30% in fiscal 2007. |
| | • | | Fiscal 2008 non-GAAP Earnings Per Share Growth:The group expects that excluding the impact of currency, non-GAAP EPS will grow at a double-digit rate. This includes the incremental impact of stock based compensation and the increase in the effective tax rate over the prior fiscal year. The total impact of these items on fiscal 2008 non-GAAP EPS is expected to be approximately $0.05. Additionally, the Group expects the ASR transaction to increase earnings per share by approximately two cents. |
| | • | | The total pre-tax impact of FAS 123R (accounting for stock-based compensation) in fiscal 2008 is expected to be approximately $22.0 million, with an EPS impact of approximately $0.08. |
| | • | | Fiscal 2008 Capital Spending: The Group expects capital spending to be in the range of $60-65 million. |
Other risks and uncertainties that may affect Applied Biosystems’ financial performance are detailed in the “Forward-Looking Statements” section of this release.
The comments in the Outlook section of this press release reflect management’s current outlook. Applera does not have any current intention to update this outlook and plans to revisit the outlook for its businesses only once each quarter when financial results are announced.
Use of Non-GAAP Financial Measures
This press release contains non-GAAP financial measures, both historical and forward-looking, and including earnings per share and operating margin adjusted to exclude some costs, expenses, gains and losses and other specified items. These measures are not in accordance with, or an alternative for, generally accepted accounting principles, or GAAP, and may be different from non-GAAP financial measures used by other companies. Among the items included in GAAP earnings but excluded for purposes of determining adjusted earnings or other non-GAAP financial measures that we present are: gains or losses from sales of operating assets and investments; restructuring charges, including severance charges; charges and recoveries relating to significant legal proceedings; asset impairment charges; amortization of acquired intangibles and special tax items. In addition, for non-GAAP financial measures, we have also excluded the allocation of interperiod taxes and intercompany sales. We believe the presentation of non-GAAP financial measures provides useful information to management and investors regarding various financial and business trends relating to our financial condition and results of operations, and that when GAAP financial measures are viewed in conjunction with non-GAAP financial measures, investors are provided with a more meaningful understanding of our ongoing operating performance. In addition, these non-GAAP financial measures are among the primary indicators we use as a basis for evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting future periods. Non-GAAP financial measures are not intended to be considered in isolation or as a substitute for GAAP financial measures. To the extent this release contains historical non-GAAP financial measures, we have also provided corresponding GAAP financial measures for comparative purposes. However, in the case of forward-looking non-GAAP financial measures, we have not provided corresponding forward-looking GAAP financial measures because these measures are not accessible to us. We cannot predict the occurrence, timing, or amount of all non-GAAP items that we exclude from our non-GAAP financial measures but which could potentially be significant to the calculation of our GAAP financial measures for future fiscal periods.
Conference Call & Webcast
A conference call with Applera Corporation executives will be held today at 11:00 a.m. (ET) to discuss these results and other matters related to the businesses. The call will be formatted to focus on each of the Applera businesses separately. The Applied Biosystems Group portion of the call will start at 11:00 a.m. (ET). The Celera Group portion of the call will start at 11:45 a.m. (ET), or immediately following the end of the Applied Biosystems portion of the call, if later.
During each segment, the management team will make prepared remarks and answer questions from securities analysts and investment professionals. Investors, securities analysts, representatives of the media and other interested parties who would like to participate should dial 617.213.4866 and enter passcode 89496444 at any time from 10:45 a.m. until the end of the call. This conference call will also be webcast. Interested parties who wish to listen to the webcast should visit the “Investors & Media” section of eitherwww.applera.com,www.celera.com, orwww.appliedbiosystems.com. A digital recording will be available approximately two hours after the completion of the conference call on January 24 until February 7, 2008. Interested parties should call 617.801.6888 and enter passcode 84165724.
About Applera Corporation and Applied Biosystems
Applera Corporation consists of two operating groups. Applied Biosystems serves the life science industry and research community by developing and marketing instrument-based systems, consumables, software, and services. Customers use these tools to analyze nucleic acids (DNA and RNA), small molecules, and proteins to make scientific discoveries and develop new pharmaceuticals. Applied Biosystems’ products also serve the needs of some markets outside of life science research, which we refer to as “applied markets,” such as the fields of: human identity testing (forensic and paternity testing); biosecurity, which refers to products needed in response to the threat of biological terrorism and other malicious, accidental, and natural biological dangers; and quality and safety testing, such as testing required for food and pharmaceutical manufacturing. Applied Biosystems is headquartered in Foster City, CA, and reported sales of approximately $2.1 billion during fiscal 2007. The Celera Group is a diagnostics business delivering personalized disease management through a combination of products and services incorporating proprietary discoveries. Berkeley HeartLab, a subsidiary of Celera, offers services to predict cardiovascular disease risk and optimize patient management. Celera also commercializes a wide range of molecular diagnostic products through its strategic alliance with Abbott and has licensed other relevant diagnostic technologies developed to provide personalized disease management in cancer and liver diseases. Information about Applera Corporation, including reports and other information filed by the company with the Securities and Exchange Commission, is available at http://www.applera.com, or by telephoning 800.762.6923. Information about Applied Biosystems is available at http://www.appliedbiosystems.com.
Forward-Looking Statements
Certain statements in this press release, including the Outlook section, are forward-looking. These may be identified by the use of forward-looking words or phrases such as “believe,” “expect,” “should,” “anticipate,” and “planned,” among others. These forward-looking statements are based on Applera Corporation’s current expectations. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for such forward-looking statements. In order to comply with the terms of the safe harbor, Applera Corporation notes that a variety of factors could cause actual results and experience to differ materially from the anticipated results or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect the operations, performance, development, and results of Applied Biosystems businesses, including its activities in the clinical diagnostics instrumentation market, include but are not limited to: (1) rapidly changing technology and evolving industry standards could adversely affect demand for Applied Biosystems’ products, and its business is dependent on development and customer acceptance of new products; (2) Applied Biosystems’ sales are dependent on customers’ capital spending policies and government-sponsored research; (3) Applied Biosystems has significant overseas operations, and fluctuations in the value of foreign currencies could affect Applied Biosystems’ financial and operating results; (4) Applied Biosystems’ growth depends in part on its ability to acquire complementary technologies through acquisitions, investments, or other strategic relationships or alliances, which may not be successful, may absorb significant resources, may cause dilution, and may result in impairment or other charges; (5) Applied Biosystems may be subject to liabilities related to its use,
manufacture, sale, and distribution of hazardous materials; (6) some of Applied Biosystems’ principal facilities are subject to the risk of earthquakes, which could interrupt operations; (7) Applied Biosystems’ products are based on complex, rapidly developing technologies, which has resulted in some ongoing legal actions against Applied Biosystems and which creates a constant risk of lawsuits, arbitrations, investigations, and other legal actions with private parties and governmental entities, particularly involving claims for infringement of patents and other intellectual property rights; (8) some of the intellectual property that is important to Applied Biosystems’ business is owned by other companies or institutions and licensed to Applied Biosystems, and legal actions against these companies or institutions could harm Applied Biosystems’ business; (9) Applied Biosystems may need to license intellectual property from third parties to avoid or settle legal actions brought against Applied Biosystems; (10) Applied Biosystems is dependent on the operation of computer hardware, software, and Internet applications and related technology for its businesses, particularly those focused on the development and marketing of information-based products and services; (11) new clinical diagnostic instruments to be developed by Applied Biosystems may not receive required regulatory clearances and/or may not be accepted and adopted by the market; (12) Applied Biosystems relies on a single supplier or a limited number of suppliers for some key products and key components of some of its products; and (13) other factors that might be described from time to time in Applera Corporation’s filings with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and Applera does not undertake any duty to update this information, including any forward-looking statements, unless required by law.
Copyright 2008. Applera Corporation. All Rights Reserved. AB (Design), Applied Biosystems, Applera, and Celera are registered trademarks, and SOLiD is a trademark of Applera Corporation or its subsidiaries in the U. S. and/or certain other countries. Ambion is a registered trademark of Ambion, Inc. Ambion and Berkeley HeartLab are wholly owned subsidiaries of Applera Corporation. TaqMan is a registered trademark of Roche Molecular Systems, Inc.
APPLERA CORPORATION
APPLIED BIOSYSTEMS GROUP
CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Dollar amounts in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | |
| | | Three months ended December 31, | | | Six months ended December 31, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Net revenues | | $561.9 | | | $530.0 | | | $1,063.1 | | | $1,006.3 | |
Cost of sales | | 235.2 | | | 235.5 | | | 456.5 | | | 456.2 | |
| | | | | | | | | | | | |
Gross margin | | 326.7 | | | 294.5 | | | 606.6 | | | 550.1 | |
Selling, general and administrative | | 155.1 | | | 147.5 | | | 303.5 | | | 282.6 | |
Research and development | | 44.4 | | | 50.9 | | | 95.0 | | | 96.0 | |
Amortization of purchased intangible assets | | 2.6 | | | 2.9 | | | 5.2 | | | 5.6 | |
Employee-related charges, asset impairments and other | | 2.9 | | | | | | 2.9 | | | | |
Asset dispositions and legal settlements | | | | | (7.8 | ) | | (7.6 | ) | | 1.3 | |
Acquired research and development | | | | | | | | | | | 114.3 | |
| | | | | | | | | | | | |
Operating income | | 121.7 | | | 101.0 | | | 207.6 | | | 50.3 | |
Gain on investments, net | | 2.6 | | | | | | 2.6 | | | 0.2 | |
Interest income (expense), net | | (0.1 | ) | | 3.4 | | | 3.5 | | | 6.0 | |
Other income (expense), net | | 1.2 | | | 0.9 | | | 2.3 | | | 2.2 | |
| | | | | | | | | | | | |
Income before income taxes | | 125.4 | | | 105.3 | | | 216.0 | | | 58.7 | |
Provision for income taxes | | 39.1 | | | 30.5 | | | 68.8 | | | 42.6 | |
| | | | | | | | | | | | |
Net income | | $ 86.3 | | | $ 74.8 | | | $ 147.2 | | | $ 16.1 | |
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| | | | |
| Earnings per share analysis | | | | | | | | | | | | |
| | | | |
Net income | | $ 86.3 | | | $ 74.8 | | | $ 147.2 | | | $ 16.1 | |
Allocated intercompany sales of assets(1) | | (0.1 | ) | | (0.1 | ) | | (0.1 | ) | | (0.2 | ) |
Allocated interperiod taxes(1) | | 0.1 | | | 0.3 | | | 0.2 | | | 0.1 | |
| | | | | | | | | | | | |
Total net income allocated | | 86.3 | | | 75.0 | | | 147.3 | | | 16.0 | |
Less dividends declared on common stock | | 7.2 | | | 7.8 | | | 15.0 | | | 15.6 | |
| | | | | | | | | | | | |
Undistributed earnings | | $ 79.1 | | | $ 67.2 | | | $ 132.3 | | | $ 0.4 | |
| | | | | | | | | | | | |
| | | | |
Allocation of basic earnings per share | | | | | | | | | | | | |
Basic distributed earnings per share | | $ 0.04 | | | $ 0.04 | | | $ 0.08 | | | $ 0.09 | |
Basic undistributed earnings per share | | 0.46 | | | 0.37 | | | 0.75 | | | | |
| | | | | | | | | | | | |
Total basic earnings per share | | $ 0.50 | | | $ 0.41 | | | $ 0.83 | | | $ 0.09 | |
| | | | | | | | | | | | |
| | | | |
Allocation of diluted earnings per share | | | | | | | | | | | | |
Diluted distributed earnings per share | | $ 0.04 | | | $ 0.04 | | | $ 0.08 | | | $ 0.08 | |
Diluted undistributed earnings per share | | 0.45 | | | 0.35 | | | 0.73 | | | | |
| | | | | | | | | | | | |
Total diluted earnings per share | | $ 0.49 | | | $ 0.39 | | | $ 0.81 | | | $ 0.08 | |
| | | | | | | | | | | | |
| | | | |
Weighted average number of common shares | | | | | | | | | | | | |
Basic | | 171,561,000 | | | 183,507,000 | | | 177,266,000 | | | 182,793,000 | |
Diluted | | 177,361,000 | | | 191,393,000 | | | 182,900,000 | | | 190,321,000 | |
(1) | Represents allocation of intercompany sales of assets and interperiod taxes to adjust net income for purposes of calculating earnings per share. |
APPLERA CORPORATION
APPLIED BIOSYSTEMS GROUP
Revenues By Product Categories
(Dollar amounts in millions)
(Unaudited)
| | | | | | |
| | | Three months ended December 31, | | |
| | | 2007 | | 2006 | | Change |
DNA Sequencing | | $ 146.8 | | $ 146.8 | | 0% |
% of total revenues | | 26% | | 28% | | |
Real-Time PCR/Applied Genomics | | 200.5 | | 172.6 | | 16% |
% of total revenues | | 36% | | 32% | | |
Mass Spectrometry | | 137.6 | | 135.9 | | 1% |
% of total revenues | | 24% | | 26% | | |
Core PCR & DNA Synthesis | | 50.2 | | 49.2 | | 2% |
% of total revenues | | 9% | | 9% | | |
Other Product Lines | | 26.8 | | 25.5 | | 5% |
% of total revenues | | 5% | | 5% | | |
| | | | | | |
Total | | $ 561.9 | | $ 530.0 | | 6% |
| | | | | | |
| | |
| | | Six months ended December 31, | | |
| | | 2007 | | 2006 | | Change |
DNA Sequencing | | $ 275.8 | | $ 278.3 | | -1% |
% of total revenues | | 26% | | 28% | | |
Real-Time PCR/Applied Genomics(1) | | 380.6 | | 328.7 | | 16% |
% of total revenues | | 36% | | 33% | | |
Mass Spectrometry | | 258.7 | | 251.9 | | 3% |
% of total revenues | | 24% | | 25% | | |
Core PCR & DNA Synthesis | | 96.8 | | 95.4 | | 1% |
% of total revenues | | 9% | | 9% | | |
Other Product Lines(1) | | 51.2 | | 52.0 | | -2% |
% of total revenues | | 5% | | 5% | | |
| | | | | | |
Total | | $1,063.1 | | $1,006.3 | | 6% |
| | | | | | |
(1) | Certain fiscal 2007 amounts have been reclassified. |
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended December 31, 2007
(Dollar amounts in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | |
| | | Applied
Biosystems
Group | | | Celera Group | | | Eliminations | | | Consolidated |
Net revenues | | $561.9 | | | $40.3 | | | $(0.8 | ) | | $601.4 |
Cost of sales | | 235.2 | | | 11.3 | | | (0.3 | ) | | 246.2 |
| | | | | | | | | | | |
Gross margin | | 326.7 | | | 29.0 | | | (0.5 | ) | | 355.2 |
Selling, general and administrative | | 155.1 | | | 20.1 | | | (0.1 | ) | | 175.1 |
Research and development | | 44.4 | | | 10.6 | | | (0.3 | ) | | 54.7 |
Amortization of purchased intangible assets | | 2.6 | | | 2.1 | | | | | | 4.7 |
Employee-related charges, asset impairments and other | | 2.9 | | | 0.4 | | | | | | 3.3 |
| | | | | | | | | | | |
Operating income (loss) | | 121.7 | | | (4.2 | ) | | (0.1 | ) | | 117.4 |
Gain on investments, net | | 2.6 | | | | | | | | | 2.6 |
Interest income (expense), net | | (0.1 | ) | | 4.5 | | | (0.1 | ) | | 4.3 |
Other income (expense), net | | 1.2 | | | 0.2 | | | | | | 1.4 |
| | | | | | | | | | | |
Income before income taxes | | 125.4 | | | 0.5 | | | (0.2 | ) | | 125.7 |
Provision for income taxes | | 39.1 | | | 0.2 | | | (0.2 | ) | | 39.1 |
| | | | | | | | | | | |
Net income | | $ 86.3 | | | $ 0.3 | | | $ - | | | $ 86.6 |
| | | | | | | | | | | |
| | | | |
Net income per share | | | | | | | | | | | |
Basic | | $ 0.50 | | | $0.00 | | | | | | |
Diluted | | $ 0.49 | | | $0.00 | | | | | | |
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Three Months Ended December 31, 2006
(Dollar amounts in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | |
| | | Applied
Biosystems
Group | | | Celera Group | | | Eliminations | | | Consolidated | |
Net revenues | | $530.0 | | | $ 13.2 | | | $(1.3 | ) | | $541.9 | |
Cost of sales | | 235.5 | | | 4.5 | | | (0.6 | ) | | 239.4 | |
| | | | | | | | | | | | |
Gross margin | | 294.5 | | | 8.7 | | | (0.7 | ) | | 302.5 | |
Selling, general and administrative | | 147.5 | | | 7.3 | | �� | 0.1 | | | 154.9 | |
Research and development | | 50.9 | | | 12.0 | | | (0.7 | ) | | 62.2 | |
Amortization of purchased intangible assets | | 2.9 | | | | | | | | | 2.9 | |
Employee-related charges, asset impairments and other | | | | | 2.5 | | | | | | 2.5 | |
Asset dispositions and legal settlements | | (7.8 | ) | | (2.4 | ) | | | | | (10.2 | ) |
| | | | | | | | | | | | |
Operating income (loss) | | 101.0 | | | (10.7 | ) | | (0.1 | ) | | 90.2 | |
Interest income, net | | 3.4 | | | 7.0 | | | | | | 10.4 | |
Other income (expense), net | | 0.9 | | | 0.1 | | | | | | 1.0 | |
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Income (loss) before income taxes | | 105.3 | | | (3.6 | ) | | (0.1 | ) | | 101.6 | |
Provision (benefit) for income taxes | | 30.5 | | | (3.1 | ) | | (0.3 | ) | | 27.1 | |
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Net income (loss) | | $ 74.8 | | | $ (0.5 | ) | | $ 0.2 | | | $ 74.5 | |
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Net income (loss) per share | | | | | | | | | | | | |
Basic | | $ 0.41 | | | $(0.01 | ) | | | | | | |
Diluted | | $ 0.39 | | | $(0.01 | ) | | | | | | |
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 2007
(Dollar amounts in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | | |
| | | Applied Biosystems Group | | | Celera Group | | | Eliminations | | | Consolidated | |
Net revenues | | $1,063.1 | | | $56.5 | | | $(1.6 | ) | | $1,118.0 | |
Cost of sales | | 456.5 | | | 14.5 | | | (0.6 | ) | | 470.4 | |
| | | | | | | | | | | | |
Gross margin | | 606.6 | | | 42.0 | | | (1.0 | ) | | 647.6 | |
Selling, general and administrative | | 303.5 | | | 28.2 | | | (0.1 | ) | | 331.6 | |
Research and development | | 95.0 | | | 21.3 | | | (0.8 | ) | | 115.5 | |
Amortization of purchased intangible assets | | 5.2 | | | 2.1 | | | | | | 7.3 | |
Employee-related charges, asset impairments and other | | 2.9 | | | 0.4 | | | | | | 3.3 | |
Asset dispositions and legal settlements | | (7.6 | ) | | | | | | | | (7.6 | ) |
| | | | | | | | | | | | |
Operating income (loss) | | 207.6 | | | (10.0 | ) | | (0.1 | ) | | 197.5 | |
Gain on investments, net | | 2.6 | | | | | | | | | 2.6 | |
Interest income, net | | 3.5 | | | 11.6 | | | | | | 15.1 | |
Other income (expense), net | | 2.3 | | | (0.1 | ) | | (0.1 | ) | | 2.1 | |
| | | | | | | | | | | | |
Income before income taxes | | 216.0 | | | 1.5 | | | (0.2 | ) | | 217.3 | |
Provision for income taxes | | 68.8 | | | 0.5 | | | (0.3 | ) | | 69.0 | |
| | | | | | | | | | | | |
Net income | | $ 147.2 | | | $ 1.0 | | | $ 0.1 | | | $ 148.3 | |
| | | | | | | | | | | | |
| | | | |
Net income per share | | | | | | | | | | | | |
Basic | | $ 0.83 | | | $0.01 | | | | | | | |
Diluted | | $ 0.81 | | | $0.01 | | | | | | | |
APPLERA CORPORATION
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
For the Six Months Ended December 31, 2006
(Dollar amounts in millions except per share amounts)
(Unaudited)
| | | | | | | | | | | |
| | | Applied Biosystems Group | | Celera Group | | | Eliminations | | | Consolidated | |
Net revenues | | $1,006.3 | | $ 23.4 | | | $(2.4 | ) | | $1,027.3 | |
Cost of sales | | 456.2 | | 8.3 | | | (1.0 | ) | | 463.5 | |
| | | | | | | | | | | |
Gross margin | | 550.1 | | 15.1 | | | (1.4 | ) | | 563.8 | |
Selling, general and administrative | | 282.6 | | 14.5 | | | 0.1 | | | 297.2 | |
Research and development | | 96.0 | | 25.2 | | | (1.1 | ) | | 120.1 | |
Amortization of purchased intangible assets | | 5.6 | | | | | | | | 5.6 | |
Employee-related charges, asset impairments and other | | | | 6.0 | | | | | | 6.0 | |
Asset dispositions and legal settlements | | 1.3 | | (2.4 | ) | | | | | (1.1 | ) |
Acquired research and development | | 114.3 | | | | | | | | 114.3 | |
| | | | | | | | | | | |
Operating income (loss) | | 50.3 | | (28.2 | ) | | (0.4 | ) | | 21.7 | |
Gain on investments, net | | 0.2 | | | | | | | | 0.2 | |
Interest income, net | | 6.0 | | 13.5 | | | 0.1 | | | 19.6 | |
Other income (expense), net | | 2.2 | | 0.2 | | | | | | 2.4 | |
| | | | | | | | | | | |
Income (loss) before income taxes | | 58.7 | | (14.5 | ) | | (0.3 | ) | | 43.9 | |
Provision (benefit) for income taxes | | 42.6 | | (7.0 | ) | | (0.2 | ) | | 35.4 | |
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Net income (loss) | | $ 16.1 | | $ (7.5 | ) | | $(0.1 | ) | | $ 8.5 | |
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| | | | |
Net income (loss) per share | | | | | | | | | | | |
Basic | | $ 0.09 | | $(0.10 | ) | | | | | | |
Diluted | | $ 0.08 | | $(0.10 | ) | | | | | | |
