US biotechnology company Invitrogen reported record second-quarter revenue but warned that top-line growth for the rest of 2004 would be less than expected, citing an increasingly competitive business environment.
However, the company said it still expected to meet its projections of 74 cents to 76 cents a share for the remaining two quarters, in line with analyst's expectations of 75 cents to 77 cents a share.
Invitrogen, which makes tools and provides services for other biotechnology companies, reported net income for the second quarter to be $19.7 million (€16.1 million) versus $16.9 million for the same quarter in 2003.
The company said second-quarter revenue rose 32 per cent to $254 million, while earnings rose 17 per cent to $19.7 million, or 36 cents a share compared to 34 cents per share reported in the second quarter of 2003. Excluding acquisition-related costs, the company earned $42.2 million, or 74 cents a share.
Invitrogen's growth strategy of buying smaller companies and adding their products to its growing catalogue is thought to be behind this double-digit growth in sales. Recent companies acquired include Genicon Sciences, specializing in nanotechnology, and protein microarrays and Informax, which supply desktop software for designing molecular biology experiments.
BioReliance, a company Invitrogen acquired and closed in February, boosted revenue in its BioProduction business by 53 per cent. The acquisition of Molecular Probes drove a 19 per cent increase in Invitrogen's BioDiscovery business, which sells tests and biologic products that help in drug discovery
In a conference call, Gregory Lucier, Invitrogen's chief executive, described the company's performance as strong. He pointed to Invitrogen's growth in revenues, pulling in more than $500 million during the first half of 2004, up 35 percent from a year ago. For the second half of 2004, Invitrogen estimates revenue totals at between $510 million and $520 million.