Thirteen of the 16 companies in the IBO Laboratory Sales Index reported quarterly earnings before this issue’s publication. Including estimates for companies yet to report, third quarter revenue for the Index grew more than 5% excluding currency, to $6,304 million. Excluding Illumina, Index sales advanced approximately 3% organically. Operating profit improved more than 10% to $1,355 million, or 5% excluding Illumina. Operating margin expanded 110 basis points to 20.1% of sales.

Affymetrix reported better-than-expected third quarter sales as a result of strong genotyping-services revenue. Sales grew 8.4%, 10.3% excluding the divested Anatrace line (see IBO 10/15/13), to $87.1 million. All figures below are calculated on an organic basis, excluding the divestment. Service and Other revenue jumped 61.7% to make up 10% of revenues. Consumables and Instrument sales expanded 4.4% and 57.3% to account for 85% and 5% of revenues, respectively. Adjusted gross profit margin advanced 90 basis points to 60.7% of sales. Adjusted operating profit soared 42.9% to $8.8 million due to increased R&D and additional sales personnel.

Quarterly Affymetrix Genetic Analysis and Clinical Applications sales jumped 43.1% to account for 40% of revenues. Genotyping products and services were particularly strong, rising 46% as a result of higher sample volume from biobanking and agbio. Sales to agbio account for approximately 25% of genotyping revenues. Genotyping revenue was partially offset by lower demand for SNP 6.0 products. Cytogenetic sales grew 17%. Increased revenue from instruments, and the clinical partnering and licensing business also contributed to segment growth. Life Science Reagents sales were relatively flat excluding the divestment to account for 7% of sales. Expression sales declined 14.5% to make up 21% of revenues, including lower sales of in vitro transcription and gene arrays, and lower demand of whole-transcriptome products. EBioscience sales improved 1.2% to make up 26% of revenues, led by demand for ProCarta Plex products and higher US flow cytometry reagents sales. Segment growth was partially offset by lower sales of QuantiGene products. The company raised its 2014 revenue guidance by $5 million to $345 million for growth of 4.4%, or roughly 7.5% excluding the divestment and one-time $5.3 million licensing payment in 2013. The company also lifted its full-year EBITDA target to 17% from the previous range of 14%–15%.

Third quarter sales for Harvard Bioscience grew 1.2% to $25.4 million but were flat excluding currency. Stronger European sales were offset by weaker-than-expected demand in China as a result of delayed government funding. Sales outside the US accounted for 39% of revenues. Demand from US academic and government markets remained challenged. Bookings were unchanged at $25.7 million, but backlog grew 41.9% to $6.2 million. Gross profit margin was flat at 45.1% of sales. Adjusted operating profit rocketed 67.3% to $2.3 million due to completed restructuring measures. Harvard raised its 2014 sales outlook from $105 million to $107–$108 million to include recent acquisitions.

For the third quarter, HORIBA’s Process and Environmental Instruments & Systems (P&E) revenue improved 0.3% to ¥3,537 million ($34.0 million = ¥103.99 = $1) (see page 12) to account for 11% of company revenues. Excluding currency, segment sales declined in the low single digits. Japanese sales slipped 1.8% to account for 51% of P&E revenue. Sales to the Americas were sharply lower to make up 12% of revenue. Excluding currency, sales to Europe and Asia were strong, making up 15% and 22%, respectively. Orders and backlog improved 13.8% and 3.4% to ¥4,708 million ($45.3 million) and ¥4,730 million ($45.5 million), respectively. HORIBA raised its operating income forecast by 20% to ¥1,800 million ($17.3 million).

HORIBA Scientific Instruments & Systems (SI) sales grew 8.6% to ¥5,701 million ($54.8 million) (see page 12) to account for 17% of revenues. SI organic sales were roughly flat. Japanese sales fell 8.9% to account for 24% of SI sales. Sales to the Americas declined slightly on a currency-neutral basis to make up 23%. Asian and European sales each grew double digits excluding currency to make up 24% and 28%. While orders were flat at ¥6,167 million ($59.3 million), backlog was up 3.4% to ¥7,928 million ($76.2 million). Segment operating loss was ¥61 million ($0.6 million), compared to just above breakeven a year ago. SI’s operating-income outlook was reduced 40% to ¥600 million ($5.8 million).

For the fiscal half year ending September 30, Oxford Instruments sales grew 7.3% to £178.5 million ($297.5 million = £0.60 = $1) (see page 12). Excluding currency headwinds of 6.9% and acquisition contributions of 20.1%, organic sales contracted 5.9%. Organic sales were negatively impacted by 1.7% from the completion of the International Thermonuclear Experimental Reactor (ITER) contract, and weak demand within Plasma Technology. Overall, sales to North America grew 5% organically to account for 34% of sales. European and Asian organic sales fell 11% and 21%, respectively, to each make up 32%. Sales in China and Japan represented 14% and 7% of company sales, respectively. Orders climbed 19.9%, 7.4% organically, to £201.5 million ($335.8 million), including organic growth of nearly 30% in the US and 12.5% in Europe. Organic orders in Asia fell 14%, including weakness in Japan and India but 6% growth in China. Adjusted gross margin declined 100 basis points to 44.0% of sales. Adjusted operating income dropped 14.1% to £18.9 million ($31.5 million) because of lower sales volume, currency, the completed ITER contract and higher interest expenses.

First-half sales for Oxford Nanotechnology Tools (NT) grew 20.4% to account for 52% of sales due to the acquisition of Andor Technology (see IBO 12/15/13) and increased Omicrom sales. Organic NT sales slumped 13.7% due to weak Plasma Technology orders in the second half of fiscal 2014 and soft demand in Japan and Russia. NT operating profit contracted 10.8% to £6.6 million ($11.0 million) as a result of currency and increased investments. Industrial Products (IP) sales fell 6.0%, 0.7% organically, to represent 31% of revenues. Excluding the ITER contract, organic segment sales grew 4.5%. IP operating income fell 32.1% to £5.5 million ($9.2 million) because of currency and completion of the ITER contract. Service sales slipped 1.9% to represent 18% of revenues, but grew 1.9% organically. Service operating profit improved 4.6% to £6.8 million ($11.3 million).

Fiscal second quarter 2014 sales for Shimadzu’s Analytical and Measuring Instrument (AMI) grew 10.9%, roughly 8% excluding currency, to ¥49,525 million ($476.2 million = ¥103.99 = $1) to represent 60% of revenues (see page 12). Japan improved, led by demand for materials-testing and -inspection, LC and MS systems. Overseas sales were driven by LC and MS demand, especially in North America and Europe. In China, demand for LC from pharmaceutical customers and for MS from food-safety markets was partially offset by weak government funding. Demand in India rebounded, driven by LC sales to pharmaceutical customers. Boosted by currency, AMI operating profit jumped 21.9% to ¥7,690 million ($73.9 million).