Life Technologies Corporation (NASDAQ: LIFE) today announced results for
its fourth quarter and full year ending December 31, 2009. Non-GAAP
revenue for the fourth quarter was $874 million, resulting in full year
non-GAAP revenues of $3.30 billion, an increase of 5 percent over the
$3.14 billion reported for 2008, as if Invitrogen and Applied Biosystems
had been combined. Excluding the impact of currency and completed
divestitures, organic revenue for the quarter grew 11 percent over the
same period in the previous year and full year organic growth for 2009
was 7 percent.
“I’m very pleased with our organic growth in the fourth quarter and
throughout 2009”
“I’m very pleased with our organic growth in the fourth quarter and
throughout 2009,” said Gregory T. Lucier, Chairman and Chief Executive
Officer of Life Technologies. “Our results, on both the top and the
bottom line, demonstrate the value we have been able to bring to our
shareholders by combining the best of Invitrogen and Applied Biosystems
to create a technological leader in the life sciences. Moving forward,
we aim to leverage those strengths to further expand our position in
areas such as sequencing, applied markets and clinical applications.”
Fourth quarter GAAP diluted earnings per share were $0.26, which
includes $0.29 per share of acquisition related intangible amortization
expense, $0.04 per share of non-cash interest expense associated with
the adoption of FSP APB14-1, and $0.19 per share of business integration
costs and other items. In addition, GAAP earnings per share include
$0.02 per share of accelerated amortization of debt issuance cost
resulting from the early payment of debt incurred as a result of the
Applied Biosystems merger. On a non-GAAP basis, which excludes these
items, diluted earning per share was $0.80.
For the full year GAAP diluted earnings per share were $0.80, which
includes $1.43 per share of acquisition related amortization expense,
$0.17 per share of non-cash interest expense associated with the
adoption of convertible debt accounting guidance (FSP APB14-1), $0.59
per share of business integration costs and other items, and $0.05 per
share of accelerated amortization of debt issuance cost resulting from
the early payment of debt. On a non-GAAP basis, which excludes these
items, diluted earnings per share were $3.04.
Analysis of Fourth Quarter 2009 and Fiscal Year 2009 Results
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Fourth quarter non-GAAP 2009 revenue increased 14 percent over the
previous year as if Invitrogen and Applied Biosystems had been
combined for the entire fourth quarter in 2008. Revenue growth without
the impact from currency and completed divestitures was 11 percent,
which was a result of double-digit growth in Europe and Asia Pacific
and high single-digit growth in the Americas and Japan. Revenue from
foreign currency exchange had a positive 4-point effect on reported
revenue growth. The completed divestiture of the SQL*LIMS business had
a negative 1 point effect on reported revenue growth.
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Full year 2009 non-GAAP revenue increased 5 percent over the previous
year. Excluding the impact of currency and completed divestitures,
revenue growth was 7 percent organically
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Non-GAAP gross margin in the fourth quarter was 65 percent, an
improvement of 130 basis points over the prior year. Gross margin
expansion was a result of positive price realization across the
portfolio, positive currency impact, synergy realization and lower
royalty expense slightly offset by the negative impact of lower
royalty revenue. Full year non-GAAP gross margin was 66.3 percent, an
increase of 70 basis points over prior year. Full year gross margin
expansion was a result of positive price realization, lower royalty
expense and synergy realization, offset partially by the negative
impact of lower royalty revenue and currency.
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Non-GAAP operating margin was 25.8 percent in the fourth quarter,
representing an increase of approximately 300 basis points over the
same period in 2008. The increase in operating margin primarily
resulted from gross margin expansion and synergies. Full year
operating margin was 26.6 percent; an increase of 300 basis points
over the prior year, resulting from improved gross margin and
decreased headcount and travel related expenses; partially offset by
increases in depreciation and purchased services costs.
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Fourth quarter non-GAAP tax rate was 26.2 percent and 28.5 percent for
the full year. The tax rate in the fourth quarter was lower than in
previous quarters due to a shift of pre-tax income to lower tax rate
jurisdictions such as Singapore.
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Diluted weighted shares outstanding were 187.3 million in the fourth
quarter.
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Cash flow from operating activities for the fourth quarter was $264
million. Fourth quarter capital expenditures were $77 million and
resulting free cash flow was $187 million. Full year cash flow from
operating activities was $715 million, capital expenditures were $181
million and free cash flow was $534 million. The company ended the
year with $648 million in cash and short-term investments, including
$41 million held as restricted cash.
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