IDEXX Announces Year-End Results
WESTBROOK, Maine, February 5, 1999—IDEXX Laboratories, Inc. (NASDAQ - IDXX), today reported a net loss of $15,215,000, or $0.40 per share for diluted earnings per share, for the year ended December 31, 1998, compared to a net loss of $21,120,000, or $0.56 per share for diluted earnings per share for the prior year. Revenues for 1998 increased 22% to $319,889,000 from $262,970,000 in 1997. The 1998 results of operations include a write-off of in-process research and development costs of $37,162,000 associated with the acquisition of Blue Ridge Pharmaceuticals, Inc. in October 1998. The 1997 results of operations include a non-recurring operating charge of $34,500,000 relating to the write-off of in-process research and development associated with two acquisitions, the settlement of a patent infringement lawsuit, and certain restructurings. Excluding the write-offs, net income for the year ended December 31, 1998 would have increased to $21,947,000 from $1,344,000 in 1997, and diluted earnings per share would have increased to $0.55 per share in 1998 from $0.03 per share in 1997.
For the three months ended December 31, 1998, the net loss was $30,070,000, or $0.78 per share for diluted earnings per share, compared to a net loss of $3,092,000, or $0.08 per share for diluted earnings per share, for the fourth quarter of 1997. Revenues for the three months ended December 31, 1998, increased 15% to $82,723,000, from $71,819,000 for the same period in 1997. The results of operations for the quarter ended December 31, 1998 include the write-off of in-process research and development of $37,162,000 discussed above, and the results of operations for the quarter ended December 31, 1997 include a non-recurring charge of $6,500,000. Excluding the write-offs, net income for the quarter ended December 31, 1998 would have increased to $7,092,000 from $385,000 in 1997, and diluted earnings per share would have increased to $0.17 per share in 1998 from $0.01 in 1997.
The increase in revenues in the fiscal year 1998 and the quarter ended December 31, 1998 compared to 1997 periods is primarily attributable to increased sales of veterinary test kits and consumables, practice management software products and services, veterinary reference laboratory services, and products and services for use in food and water testing. These increases were offset in part by decreased sales of veterinary instruments. International revenue increased 6% to $88,677,000, or 28% of total company revenue, in 1998, compared to $83,870,000, or 32% of total company revenue, in 1997.
According to David E. Shaw, Chairman and CEO: "Fourth quarter results reflect the trend of sequential improved performance throughout 1998. In particular, revenue growth in key areas of our business was strong, and profit goals were achieved. We look forward to this momentum continuing in 1999, along with increased emphasis on our key investment areas of veterinary pharmaceuticals and informatics."
IDEXX Laboratories, Inc. is a world leader in diagnostic and detection systems for veterinary, food and environmental testing applications. The Company also operates an international network of veterinary laboratories and is a leader in the veterinary software and informatics market. Headquartered in Westbrook, Maine, IDEXX employs more than 2,000 people and offers over 350 products to customers in more than 50 countries.
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