IDEXX Announces Year-End Results
WESTBROOK, Maine, February 12, 1998—IDEXX Laboratories, Inc. (NASDAQ - IDXX), today reported a net loss of $21,120,000 for the year ended December 31, 1997, or $0.56 per share for both basic and diluted earnings per share, compared to income of $32,640,000 or $0.88 per share for basic earnings per share and $0.83 per share for diluted earnings per share for the prior year. Revenues for 1997 decreased 2% to $262,970,000, from $267,677,000 in 1996. The 1997 results of operations includes a non-recurring operating charge of $34,500,000, and an additional cost of sales charge of $2,900,000. The non-recurring operating charge relates to the write-off of in-process research and development associated with the acquisitions of Professionals' Software, Inc. (PSI) and Advanced Veterinary Systems (AVS) in 1997, the settlement of the patent infringement lawsuit brought by Barnes-Jewish Hospital plus related legal costs, and other costs associated with the consolidation of certain European operations and US veterinary operations. The non-recurring operating and additional cost of sales charges total $0.64 per share after tax for the year ended December 31, 1997.
For the three months ended December 31, 1997, the net loss was $3,092,000, or $0.08 per share for both basic and diluted earnings per share compared to net income of $9,236,000 or $0.25 per share for basic earnings per share and $0.23 for diluted earnings per share for the fourth quarter of 1996. The results of operations for the quarter ended December 31, 1997 includes a non-recurring operating charge of $6,500,000 and an additional cost of sales charge of $2,900,000. The non-recurring operating charge relates to the finalization of the write-off of in-process research and development associated with the acquisition of PSI and AVS, discussed above, costs associated with U.S. workforce reductions, and the closing of certain US facilities. The cost of sales charge arises from several recent strategic management decisions. The total non-recurring operating and additional cost of sales charges total $0.14 per share after tax for the quarter ended December 31, 1997. Revenues for the three months ended December 31, 1997, decreased 4% to $71,819,000, from $74,565,000 for the same period in 1996.
The decrease in revenues in 1997 compared to 1996 is primarily attributable to decreased sales of veterinary instruments, feline test products and canine test products. These decreases were offset by increased sales of veterinary laboratory services, resulting from the 1996 acquisitions of four veterinary laboratories, the inclusion of revenues from the veterinary practice management software companies acquired in the first and third quarters of 1997, and increased sales of food and environmental testing products. International revenue decreased 8% to $83,870,000, or 32% of total company revenue, in 1997, compared to $91,469,000, or 34% of total company revenue, in 1996.
According to David E. Shaw, Chairman and CEO: "Our fourth quarter operating results reflect another positive step forward in returning to more customary performance levels. The management team is committed in 1998 to an aggressive plan to return IDEXX to levels of profitability consistent with the outstanding quality of our business franchises. We have taken a series of actions in this quarter, including the hiring of several key new managers and a commitment to more aggressive restructuring of certain of our businesses, to help achieve that goal. We are confident in both the near and longer term potential of IDEXX."
IDEXX Laboratories, Inc. is a worldwide leader in developing detection, diagnostic, and information products and services for applications in animal health and food and water quality. The Company sells over 400 products to customers in more than 50 countries. IDEXX is headquartered in Westbrook, Maine.
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