Meridian Bioscience Provides Sales and Earnings Guidance for Fiscal 2007 and Reaffirms Fiscal 2006 Guidance
CINCINNATI--(BUSINESS WIRE)--Aug. 9, 2006--Meridian Bioscience, Inc., (NASDAQ:VIVO) today provided the financial community with guidance regarding the Company's fiscal 2007 sales and earnings estimates. Based on the Company's business planning and budgeting activities for the fiscal year ending September 30, 2007, management expects net sales to be in the range of $118 to $123 million and per share diluted earnings to be between $0.83 and $0.87. The per share estimates assume an increase in average shares outstanding from approximately 26.8 million at fiscal 2006 year end to 27 million at fiscal 2007 year end. Net income is expected to increase between 20% and 25% from fiscal 2006 to fiscal 2007. The sales and earnings guidance provided in this press release is from expected internal growth and does not include the impact of any acquisitions the Company might complete during fiscal 2007.
John A. Kraeutler, President and Chief Operating Officer, stated, "For 2007 we expect continued strong revenue and profit contribution from our diagnostics business units driven by increased unit demand for our broad line of upper respiratory tests, our tests for gastrointestinal infections especially C. difficile and, our products that aid in the diagnosis of peptic ulcers. In addition, new diagnostic tests are due for introduction throughout 2007 to support our organic growth rates. New contract business is underway in our Life Science unit and we expect continued strengthening in this area as well."
William J. Motto, Chairman & Chief Executive Officer added, "We see a strong fiscal 2006 fourth quarter and continue to be comfortable with our guidance of sales in the $106 to $109 million range and diluted per share earnings of between $0.63 and $0.66 for the fiscal year ending September 30, 2006. Fiscal 2006 was a solid year of organic growth, adding cash to the balance sheet, and positioning the business for continued double-digit internal growth in both revenues and earnings. In addition, we are reviewing possible acquisition opportunities to pursue during fiscal 2007. Management intends to recommend another increase in the regular cash dividend rate to the Board of Directors at the November meeting, if approved it will be our 15th increase since establishing a cash dividend policy sixteen years ago. Building shareholder value through higher sales, earnings, cash flow, and dividends coupled with a sound financial condition continues to be our objective."
FORWARD LOOKING STATEMENTS
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 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. Such statements are based upon current expectations of the Company and speak only as of the date made. The Company assumes no obligation to publicly update any forward-looking statements. These statements are subject to various risks, uncertainties and other factors that could cause actual results to differ, 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. 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. Ongoing consolidations of reference laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and distribution. Costs and difficulties in complying with laws and regulations administered by the United States Food and Drug Administration can result in unanticipated expenses and delays and interruptions to the sale of new and existing products. Changes in the relative strength or weakness of the U.S. dollar can change expected results. One of Meridian's main growth strategies is the acquisition of companies and product lines. There can be no assurance that additional acquisitions will be consummated or that, if consummated, will be successful and the acquired businesses successfully integrated into Meridian's operations.
Meridian is a fully integrated life science company that 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 diagnostic products and tests provide accuracy, simplicity and speed in the early diagnosis and treatment of common medical conditions, such as gastrointestinal, viral, urinary and respiratory infections. Meridian 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 healthcare. Meridian has strong market positions in the areas of gastrointestinal and upper respiratory infections, serology, parasitology and fungal disease diagnosis. 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, veterinary testing centers, physician offices, diagnostics manufacturers and biotech companies in more than 60 countries around the world. The Company's shares are traded through Nasdaq's National Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.
CONTACT: Meridian Bioscience, Inc.
John A. Kraeutler, 513-271-3700
SOURCE: Meridian Bioscience, Inc.