Inverness Medical Innovations announces its financial results for the third-quarter

Oct 27 2009

Inverness Medical Innovations, Inc. (NYSE: IMA), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, today announced its financial results for the quarter ended September 30, 2009.

Financial results for the third quarter of 2009:

• Net revenue of $535.8 million for the third quarter of 2009, compared to $438.8 million for the third quarter of 2008.
• GAAP net income available to common stockholders and earnings per share of $14.3 million and $0.17 per diluted common share, compared to GAAP net loss available to common stockholders and loss per share of $9.1 million and $0.12 per common share, for the third quarter of 2008.
• Adjusted cash basis net income available to common stockholders and earnings per share of $66.6 million and $0.74 per diluted common share, compared to $37.7 million and $0.46 per diluted common share, for the third quarter of 2008.

Highlights for the third quarter of 2009:

• Currency adjusted organic revenue growth of 9.2% in our Professional Diagnostics business, excluding North American influenza sales.
• North American influenza sales totaled $40.4 million for the third quarter of 2009, compared to $6.8 million for the third quarter of 2008.
• Recent acquisitions contributed $37.4 million of incremental net revenue, compared to the third quarter of 2008.

The Company's GAAP results for the third quarter of 2009 include amortization of $65.4 million, $6.2 million of restructuring charges, $7.8 million of stock-based compensation expense, a $0.7 million charge associated with the write-up to fair market value of inventory acquired in connection with the acquisition of Concateno plc, a $1.9 million compensation charge incurred in connection with the acquisition of Concateno plc, a $0.3 million loss recorded in connection with deferred purchase price consideration to be paid with our common stock and $5.1 million of acquisition-related costs recorded in accordance with our adoption of ASC 805, Business Combinations, offset by a $3.4 million gain on the disposition of our Diamics, Inc. operations and a $2.9 million net realized foreign currency gain associated with restricted cash established in connection with the Concateno plc acquisition. GAAP results for the third quarter of 2008 include amortization of $60.0 million, $5.8 million of restructuring charges and $7.0 million of stock-based compensation expense. These amounts, net of tax, have been excluded from the adjusted cash basis net income per common share for the respective quarters.

A detailed reconciliation of the Company's adjusted cash basis net income, which is a non-GAAP financial measure, to net income (loss) under GAAP, as well as a discussion regarding this non-GAAP financial measure, is included in the schedules to this press release.

The Company will host a conference call beginning at 10:00 a.m. (Eastern Time) today, October 27, 2009, to discuss these results as well as other corporate matters. During the conference call, the Company may answer questions concerning business and financial developments and trends and other business and financial matters. The Company's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been previously disclosed.