Millipore Reports 2008 Results

Published: 05-Feb-2009

Millipore Corporation (Millipore) has reported total revenues of $1.60 billion, for the full year of 2008, compared with the total revenues of $1.53 billion in the previous year-end. It reported net income of 145.8 million, or $2.62 per diluted share, for the full year of 2008, up 42%, compared with the net income of $136.5 million, or $2.48 per diluted share, in the previous year-end.

Revenues for the fourth quarter down 2% from the previous year, totaling $396.8 million. Excluding a 4% unfavorable impact from changes in foreign currency, revenues in the quarter grew 2%. On a divisional basis, excluding changes in foreign currency, Millipore’s Bioscience Division grew 7%, while the company’s Bioprocess Division revenues declined 2% from the previous year. The Bioscience Division’s revenue growth was reduced by 1% due to the elimination of a small product line.

Millipore’s fourth quarter net income totaled $33.3 million, or $0.60 per share, against $45.1 million, or $0.81 per share in the fourth quarter of 2007. Non-GAAP net income in the fourth quarter totaled $52.7 million, or $0.95 per share, against $54.1 million, or $0.98 per share, in the fourth quarter of 2007. A reconciliation of GAAP to non-GAAP financial measures is provided in the company’s financial tables accompanying this press release.

“Our Bioscience Division delivered a strong fourth quarter, continuing the pattern of consistent, profitable growth it has exhibited over the past four years,” said Martin Madaus, chairman & chief executive officer of Millipore. “This performance enabled us to offset the revenue decline we experienced in our Bioprocess Division and generate solid earnings growth and outstanding cash flow performance in 2008. While revenues in our Bioprocess Division declined organically in 2008, the division’s performance stabilized in the second half of the year and we believe it will enter 2009 as a stronger division with a very promising future. I am pleased with how quickly and effectively the entire organization implemented initiatives to adapt our cost structure, improve our working capital, and advance key strategic programs during a difficult year.

“As we look ahead, we expect the strong fundamentals of our market, our high%age of revenues generated by consumable products, and our balanced product portfolio will allow us to generate solid results in 2009. One of our highest priorities will be to accelerate our new product innovation through internal R&D, partnerships, and strategic acquisitions. The recent announcement of our acquisition of Guava Technologies is a good example of the attractive opportunities that exist to expand our product portfolio into fast growing market segments.”

For the full year 2008, Millipore’s revenues grew 5%, totaling $1.6 billion. Excluding a 4% benefit from changes in foreign currency, revenues grew 1% over 2007. On a divisional basis, excluding changes in foreign currency, Millipore’s Bioscience Division revenues grew 6%, offsetting down 4% in revenues from the company’s Bioprocess Division. The Bioscience Division’s revenue growth was reduced by 1% in 2008 due to the elimination of a small product line. Non-GAAP net income for 2008 was $200.1 million, or $3.59 per share, resulting in 7% non-GAAP earnings per share growth over 2007.

“During 2008, we significantly improved our cash flow performance, generating a 60% increase in our free cash flow and repaying $85 million of debt,” said Charles Wagner, Chief Financial Officer of Millipore. “One of the company’s highest priorities is improving its cash flow performance and we are launching several initiatives that will enable us to increase our cash flow by driving higher levels of profitability and improving our working capital efficiency.”

2008 Highlights

Bioscience Division generated organic revenue growth of 6%. The division’s growth rate was lowered by 1% due to the elimination of a small product line. The results in 2008 were driven by strong performance from the Laboratory Water Business Unit, successful new product launches, and solid performance in Europe and Asia. Over the past four years, the Bioscience Division has averaged approximately 8% organic revenue growth.

Bioprocess Division generated strong growth in its Process Monitoring Tools Business Unit, particularly for its NovaSeptum product line, a sterile sampling system used in biopharmaceutical manufacturing processes. The division also significantly expanded its presence in the disposable manufacturing market.

Accelerated product innovation with the successful launch of several key products, including Snap i.d. for protein detection, Milli-Q Integral for laboratory water purification, MILLIPLEX MAP for multiplex immunoassays, Guava Flow Cytometry System for cell analysis, and Viresolve Pro for virus clearance.

Expanded key sites and facilities, including unveiling an expanded Drug Discovery facility in St. Charles, Missouri; opening a new membrane manufacturing line in Cork, Ireland; announcing plans to open a new state-of-the-art applications and training facility in Singapore; and expanding the Danvers, Massachusetts plant to manufacture disposable manufacturing products.

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