Idexx Laboratory Inc. reports profits soared in third quarter

WESTBROOK – Idexx Laboratories Inc., which makes testing kits and other products for veterinarians, reported its net income jumped 28 percent in the third quarter as revenue increased.

The company also raised its full-year earnings view Monday.

Idexx reported third-quarter net income of $16 million, or 44 cents a share, compared with $12.5 million, or 36 cents per share, in the same quarter a year ago.

The company beat its July projection, when it forecast earnings of 39 to 41 cents a share. Analysts surveyed by Thomson First Call had projected earnings of about 41 cents a share.

Revenue for the period increased 15 percent to $120.1 million from $104.5 million.

Revenue from the company’s Companion Animal Group rose 18 percent to $97.1 million, while Food and Environment Group revenue rose 3 percent to $23 million.

Idexx said Monday it entered an agreement with Ortho-Clinical Diagnostics Inc., a unit of health care products giant Johnson & Johnson, extending the collaboration of the two companies in the veterinary clinical-chemistry market through 2018.

As a result of this agreement, Idexx has decided to discontinue certain internal development activities involving an alternative clinical chemistry instrument. This will result in a fourth-quarter noncash charge of about $7.3 million, or 12 cents a share after tax.

For the fourth quarter, Idexx expects net income of 27 to 28 cents a share. Excluding the charges, the company expects to report earnings of 39 to 40 cents a share on revenue of about $120 million.

In last year’s fourth quarter, the company earned 36 cents a share on revenue of $105.9 million.

Idexx expects full-year 2003 earnings of $1.65 a share, excluding the charge, on revenue of about $470 million. The company had previously projected earnings of $1.62 a share for 2003. Including the charge, the company expects earnings of $1.53 a share.

For 2002, Idexx had earnings of $1.30 per share, on revenue of $412.7 million.

For 2004, the company expects earnings of $1.83 to $1.85 a share, on revenue of about $520 million.

Shares of Westbrook-based Idexx closed at $46.04 Monday, up $2.39, or 5.48 percent, on Nasdaq.