Meridian Bioscience, Inc. Comments on Preliminary Fiscal 2016 Operating Results and Provides Fiscal 2017 Revenue and Earnings Guidance
These preliminary results reflect fourth quarter revenues of approximately
FISCAL 2017 REVENUE AND EARNINGS GUIDANCE
Based on planning and budgeting activities for fiscal 2017, incorporating the recent Magellan acquisition and new Diagnostics sales and marketing leadership, net revenues for fiscal 2017 are expected to be
"Core diagnostics revenue growth in fiscal 2017 is anticipated to come from continued emphasis on our broad menu, best value illumigene® molecular platform. The illumigene system now includes ten tests and larger growth opportunities are expected to come from our Group A Strep, Mycoplasma Direct, Pertussis, HSV and Malaria tests. Testing for C. difficile and Group B Strep will continue to be highly competitive; however, we expect to maintain our current levels of revenues. In addition to mid-single digit illumigene growth, we are expecting low single-digit growth in our H. pylori product line, including several newly introduced tests. With new leadership focus, we anticipate growth in most of our international markets. Weakness in the foodborne products is expected to continue, but moderate, and slightly declining sales in this product family are considered in our guidance.
"Magellan Diagnostics, acquired in March of 2016 and included in our Diagnostics Segment, has exceeded expectations thus far. For fiscal 2017, we are expecting low double-digit revenue growth on a normalized annual basis from continued success in placing the LeadCare II platform in the domestic market. Expansion into international markets, including
"Life Science segment revenue is expected to grow at a mid-single-digit rate driven by continued success with our expansion into
"Finally, our entire team recognizes that fiscal 2017 has to demonstrate that Meridian is moving and growing again. We believe the opportunities we have been building will provide that positive inflection that increases shareholder value.
"Our financial condition remains strong and we continue to be one of the most financially efficient companies in our space, generating strong returns on invested capital. Our cash position and cash flows from operating activities remain strong. We plan to recommend to the Board maintaining our dividend at its current annual indicated rate of
The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements accompanied by meaningful cautionary statements. Except for historical information, this report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, which may be identified by words such as “estimates”, “anticipates”, “projects”, “plans”, “seeks”, “may”, “will”, “expects”, “intends”, “believes”, “should” and similar expressions or the negative versions thereof and which also may be identified by their context. All statements that address operating performance or events or developments that Meridian expects or anticipates will occur in the future, including, but not limited to, statements relating to per share diluted earnings and revenue, are forward-looking statements. Such statements, whether expressed or implied, are based upon current expectations of the Company and speak only as of the date made. Specifically, Meridian’s forward-looking statements are, and will be, based on management’s then-current views and assumptions regarding future events and operating performance. Meridian assumes no obligation to publicly update or revise any forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially, including, without limitation, the following:
Meridian’s continued growth depends, in part, on its ability to introduce into the marketplace enhancements of existing products or new products that incorporate technological advances, meet customer requirements and respond to products developed by Meridian’s competition, and its ability to effectively sell such products. While Meridian has introduced a number of internally developed products, there can be no assurance that it will be successful in the future in introducing such products on a timely basis. Meridian relies on proprietary, patented and licensed technologies, and the Company’s ability to protect its intellectual property rights, as well as the potential for intellectual property litigation, would impact its results. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Recessionary pressures on the economy and the markets in which our customers operate, as well as adverse trends in buying patterns from customers, can change expected results. Costs and difficulties in complying with laws and regulations, including those administered by the
Meridian is a fully integrated life science company that develops, manufactures, markets and distributes a broad range of innovative diagnostic test kits, purified reagents and related products and offers biopharmaceutical enabling technologies. Utilizing a variety of methods, these products and diagnostic tests provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions, such as gastrointestinal, viral and respiratory infections and blood lead levels. Meridian’s diagnostic products are used outside of the human body and require little or no special equipment. The Company's products are designed to enhance patient well-being while reducing the total outcome costs of health care. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections; serology, parasitology and fungal disease diagnosis, and blood lead level testing. In addition, Meridian is a supplier of rare reagents, specialty biologicals and related technologies used by biopharmaceutical companies engaged in research for new drugs and vaccines. The Company markets its products and technologies to hospitals, reference laboratories, research centers, diagnostics manufacturers and biotech companies in more than 70 countries around the world. The Company’s shares are traded on the NASDAQ Global Select Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.
John A. KraeutlerChairman, Chief Executive Officer Meridian Bioscience, Inc.Phone: 513.271.3700 Email: firstname.lastname@example.org