Life Technologies profit and revenue set records Rockville company earned $9.4 million in 2nd quarter

Biotechnology

July 16, 1998|By Mark Guidera | Mark Guidera,SUN STAFF

Life Technologies Inc. said yesterday that it booked record revenue and earnings for its second quarter.

The Rockville-based company, which markets equipment and research materials to the life sciences and biotechnology industries, said its net income increased 13 percent in the three months that ended June 30 to $9.4 million, up from second-quarter 1997 income of $8.3 million.

Diluted earnings per share were 39 cents for the quarter, up from 35 cents in the same period of 1997.

Revenue in the quarter increased 8 percent to $92.2 million from $85 million in the year-ago period. The company derives revenue from sales and royalties on its products sold by other companies.

The company said fetal bovine serum, which is used in medical research, remains one of its best-selling products. The serum accounted for 12 percent of its $91.5 million in net sales for the second quarter.

Dr. J. Stark Thompson, president and chief executive officer, attributed the record results to a strong performance for the company's business operations in Europe and North and South America.

Business suffered in Asia and the Pacific region as a result of unfavorable currency exchange rates and the region's economic weakness, he said.

For the first six months of 1998, Life Technologies posted net income of $18.1 million, 12 percent more than in the same period a year ago. Revenue for the period was $181 million, an increase of 9 percent.

The company said diluted earnings per share for the first half of 1998 were 75 cents, compared with 68 cents in the first half of 1997.

Shares in Life Technologies closed unchanged yesterday at $38.50.

Dexter Corp., Life Technologies' majority stockholder, made an offer last week to buy the 48 percent of the company it doesn't own for $37 a share. A group of shareholders in Life Technologies has filed a lawsuit to block the transaction, saying the offer is insufficient.

Pub Date: 7/16/98

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