CINCINNATI, Ohio — Meridian Bioscience Inc. reported record revenue and net income for its fiscal first quarter, despite increased competition for sales of C. difficile test kits.
The Cincinnati company that makes diagnostic tests and other laboratory products has been working on an answer to growing competition from new immunoassays and emerging molecular methods for detecting C. difficile: illumigene.
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Illumigene is Meridian’s first molecular test kit that amplifies DNA in samples with technology licensed from Eiken Chemical Co. of Japan, the company said in its earnings statement.
In January, Meridian began clinical trials of its illumigene C. difficile product. The trials are expected to last eight weeks and the company said it is encouraged by preliminary trials of illumigene and response from key customers who have previewed the test.
If the trials go according to plan, Meridian expects to ask the U.S. Food and Drug Administration for clearance to sell the kits in April. “We are expecting flat sales in this product line until the launch of our new illumigene molecular-based technology platform later this fiscal year,” John A. Kraeutler, Meridian’s chief executive, said in his company’s release.
For the quarter ended Dec. 31, Meridian reported net income of $8.9 million, or 22 cents a diluted share, up 10 percent from $8.1 million, or 20 cents a diluted share, a year ago. Net sales were $42.5 million in the recent quarter, up 24 percent from $34.3 million a year ago. Strength of respiratory test sales, especially influenza tests, boosted both net income and revenue.
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The company boosted its quarterly dividend to 19 cents a share from 17 cents, payable Feb. 11 to shareholders as of Feb. 1. It was the 19th dividend hike for Meridian, which began paying dividends in 1991, and indicated an annualized raise of 12 percent.
“The outlook for fiscal 2010 is bright,” Kraeutler said. “Our Diagnostics business units continue to add market share and improved profitability in respiratory testing. The growth of food-borne testing continues at double-digit rates. … New products, new technologies and potential acquisitions are likely to drive further growth this year.”
The company that does not do earnings conference calls with equity analysts repeated its expectations for the year ending Sept. 30: Per-share diluted earnings of between 90 cents and 95 cents, and net sales in the range of $160 million to $165 million. Meridian’s shares fell 26 cents to $21.38 Thursday on the Nasdaq Stock Market.
“We look forward to the commercial introduction of our illumigene molecular-based platform later this fiscal year, as well as other new product introductions and continued efficiency improvements,” said William J. Motto, executive chairman, in his company’s statement. “Our financial condition is sound and our cash flow, strong.”
