The Dow Jones Industrial Average traded above 13,000 in February for the first time since April 2008. Market momentum was stimulated by employment growth, manufacturing data, rising consumer sentiment and strong technology earnings. On February 29, fourth-quarter GDP growth was revised up to 3.0% from initial estimates of 2.8%. However, concerns emerged as economic data from Europe and China hinted of slower growth. In addition, Fed Chairman Ben Bernanke provided a cautious tone on the overall economy and rising oil prices. The Chairman also avoided any comments on further quantitative easing. As a result, the Dow slipped just below 13,000 but gained 2.5% for the month. The S&P 500 and NASDAQ ended the month up 4.1% and 5.4%, respectively. For the year, the Dow, S&P 500 and NASDAQ have gained 6.0%, 8.6% and 13.9%, respectively.

All four IBO Stock Indexes improved. The Lab Consumables/Equipment and Laboratory Instrumentation Stock Indexes advanced 3.0% and 0.9%, respectively. The Diversified Instrumentation and Process/Metrology/Motion Instrumentation Stock Indexes each grew 2.3%.

Laboratory Instrumentation Stock Index

The Laboratory Instrumentation Stock Index edged 0.9% higher by for the month to close at 634.89. Eleven companies traded higher, and eight declined. Luminex led the Index, climbing 14%, while Affymetrix slumped 13%. For the year, the Index has gained 12.3%, with 16 companies advancing and three trading lower. Illumina has the largest year-to-date return, having gained 68%, while Transgenomic is down 7%.

In February, nine of the ten Index companies followed by analysts beat fourth-quarter 2011 estimates. However, 2012 outlooks were mixed. On February 2, PerkinElmer projected full-year 2012 EPS to grow 11% to $1.98–$2.04, which was above analysts’ consensus of $1.91. Shares jumped 6.2% the next day. Other companies, such as Thermo Fisher Scientific, Luminex, Illumina and Bruker, provided outlooks in line with analysts’ estimates. On February 1, Thermo projected full-year 2012 EPS to grow 12%–16% to $4.67–$4.82. On February 6, Luminex forecast revenues to grow 11%–17% to $205–$215 million and announced a $22.7 million stock repurchase plan. Shares rose 1.6% the next day. Illumina projected on February 7 first-quarter and full-year 2012 EPS of $0.29–$0.32 and $1.40–$1.50, respectively. Shares traded slightly higher the next day. On February 22, Bruker estimated 2012 Scientific Instruments earnings of $0.94–$0.98 per share and first-quarter EPS of $0.11–$0.13. Shares rose 1.6%.

Becton Dickinson (BD) and Bio-Rad Laboratories offered more restrained outlooks. On February 7, BD lowered its full-year 2012 EPS estimates by 3% to $5.60–$5.70 due to currency. Shares fell 3.8%. Despite strong EPS, Bio-Rad missed fourth-quarter revenue estimates (see page 12) and provided a cautious outlook due to increased investments and slower European sales. Shares fell 3.1% the next day.

Two other companies not followed by analysts also reported this month. On February 28, Pressure BioSciences narrowed its fourth-quarter EPS loss by 9% to $0.30 but warned of declining cash reserves. Shares fell 9.5%. The next day, MOCON reported a 7% decline in fourth-quarter EPS to $0.25 due to higher operating expenses and taxes. Shares fell 13.0%. Earlier in the month, on February 22, the company announced a 5% increase in its quarterly dividend to $0.11.

On February 2, Sequenom announced a new validation study for the identification of trisomy 18 and 13 with its MaterniT21 test. Shares climbed 8.6% the next day. Pacific Biosciences climbed 4.4% on February 13 after the company released an upgrade for its sequencing system. On February 17, sequencing companies such as Illumina and Pacific Biosciences fell 3.9% and 7.5%, respectively, following the introduction of a tiny portable DNA sequencer by Oxford Nanopore Technologies.

In other news, on February 3, Transgenomic reported a $22 million private placement, leading shares up 7.7%. On February 29, Thermo declared its first dividend payment of $0.13.

Both Credit Agricole and CLSA downgraded BD on February 1 to “Buy” from “Outperform.” Barclays Capital upgraded Affymetrix on February 9 to “Equal Weight” from “Underweight.” On February 29, AMI Research initiated coverage of Pressure BioSciences with a “Buy” rating.

Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/Motion Instrumentation Stock Index advanced 2.3% to 548.6 in February. Five companies recorded gains, and two contracted. For the year, the Index is up 12.1%, with six companies in positive territory and one losing ground. Veeco Instruments has gained the most value for both the month and year, climbing 11% and 30%, respectively, while Nanometrics has declined 13% and 5%, respectively.

Both MKS Instruments and MTS Systems provided strong guidance. On February 1, MKS Instruments projected first-quarter EPS of $0.31–$0.44, which was above analysts’ consensus. Shares rose 4.9%. MTS Systems raised its 2012 revenue growth outlook on February 2 and projected EPS to rise in the low to mid-teens. Shares climbed 4.8% the next day. On February 6, Veeco predicted first-quarter EPS of $0.13–$0.34, compared with analysts’ consensus of $0.41, yet shares were flat. On February 8, Nanometrics projected first-quarter EPS to decline by roughly half to $0.09–$0.16 due to contracting margins. Shares fell 7.8% the next day.

In other news, on February 6, SDIX jumped 6.4% after the company announced a collaboration agreement with BD Diagnostics for the development of a microbiology detection solution. BD plans to pay SDIX a $1.25 million up-front fee, as well as milestone payments and royalties.

Lab Consumables/Equipment Stock Index

The Laboratory Consumables/Equipment Stock Index grew 3.0% this month to 647.52. Four companies increased in value, and three lapsed. Pall recorded the largest gain, rising 6%, while Kewaunee Scientific sank 11%. Year to date, the Index has risen 13.6%, with all seven companies advancing. Life Technologies leads the Index, having gained 22%.

On February 7, Life Technologies guided full-year 2012 EPS of $3.90–$4.05, which was in line with analysts’ consensus of $4.04. Shares rose 1.7% the next day. However, on February 29, the company lowered its first-quarter and full-year EPS guidance by $0.01 and $0.02, respectively, due to a litigation settlement (see page 2). The company was upgraded by Citigroup on February 21 from a “Neutral” to “Buy.”

Sigma-Aldrich missed fourth-quarter sales estimates on February 9, leading shares down 1.4%. The company projected full-year 2012 EPS of $3.90–$4.05. Kewaunee Scientific reported on February 28 a fiscal third-quarter loss of $0.05, compared with a profit of $0.03 a year ago. Shares declined slightly.

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index rose 2.3% for the month to 147.70. Six companies traded higher, and Roper Industries contracted 2%. Illinois Tool Works led the Index, climbing 5%. For the year, the Index is up 16.6%, with all seven companies trading higher. Agilent Technologies boasts the highest return, having gained 25%.

Roper missed fourth-quarter revenue guidance, but forecast first-quarter and full-year EPS of $1.01–$1.05 and $4.67–$4.87, respectively, which were in line with analysts’ consensus. Shares fell 3.2%. Mettler-Toledo raised its 2012 EPS outlook by 2% on February 8 to $9.20–$9.50 for growth of 10%–12%. First-quarter EPS are projected to grow 10%–12% to $1.59–$1.63. Shares rose 0.9% the next day. Agilent narrowed its fiscal 2012 EPS range on February 15 to $3.13–$3.23, which was in line with analysts’ estimates. The company also projected fiscal second-quarter EPS of $0.71–$0.73. Shares traded slightly higher the next day.

International

For the month, all six Pacific Region companies improved, led by Hitachi High-Technologies, which gained 13%. Year to date, five companies have increased in value, led by JEOL, which is up 21%. Techcomp is down 1%.

On February 14, HORIBA reported a 5.1% decline in fourth-quarter EPS to ¥65.4 ($0.85) (see page 12) and projected a decline of 13% for 2012 EPS to ¥177.33 ($2.36). Yet shares rose 1.4%. On February 10, Shimadzu reported a 58% decline in fiscal third-quarter net income to ¥358 million ($4.6 million) (see page 12) due to tax adjustments. Shares fell 3.0% the next business day.

In February, nine European companies recorded positive returns, and four declined. Oxford Instruments led all companies, rising 28%, while Analytik Jena fell 7%.

For the year, values for 10 companies have increased, and values for three have dropped. Renishaw has improved the most, jumping 43%, while Abcam has lost 7% of its value.

On February 2, Sartorius reported 32% adjusted EPS growth for the year to €3.02 ($4.72) and projected 2012 operating profit to grow 10%. Shares climbed 3.2% the next day. On February 14, Analytik Jena reported that fiscal first-quarter EPS grew 14% to €0.25 ($0.34), yet shares were flat. On the same day, Biotage reported fourth-quarter EPS of SEK 0.22 ($0.03), which was similar to a year ago. Shares advanced 12.7%. On February 17, Spectris reported that full-year EPS increased 31% to £1.07 ($1.67). Shares rose 2.7%.

 Line Graph: IBO Instrument Industry Stock Index

         Lab Instrument Stock Index     S&P 500

 Feb-10            566.22               264.81

 Mar-10            585.87               280.38

 Apr-10            596.47               284.51

 May-10            557.61               261.19

 Jun-10            531.11               247.12

 Jul-10            513.20               264.12

 Aug-10            499.94               251.58

 Sep-10            556.95               273.61

 Oct-10            579.40               283.69

 Nov-10            589.00               283.04

 Dec-10            565.27               301.52

 Jan-11            657.02               308.36

 Feb-11            661.02               317.14

 Mar-11            661.90               317.88

 Apr-11            703.32               326.93

 May-11            721.22               322.52

 Jun-11            712.55               316.63

 Jul-11            676.63               309.83

 Aug-11            635.47               292.24

 Sep-11            577.75               271.27

 Oct-11            602.13               300.49

 Nov-11            569.85               298.97

 Dec-11            565.27               301.52

 Jan-12            628.98               314.66

 Feb-12            634.89               327.43

 2011                                   2010

 Cos.    Date Rept.    FQ    Adj.EPS     Consensus  Vs.Est.   Grw.   Adj.EPS

 Laboratory Instrumentation   

 AFFX        8-Feb     4Q    ($0.21)    ($0.07)     -$0.14     NM    $0.06 

 BDX         7-Feb     1Q      $1.21      $1.17      $0.04   -10%    $1.35 

 BIO        23-Feb     4Q      $2.08      $1.67      $0.41    -4%    $2.17 

 BRKR       22-Feb     4Q      $0.30      $0.29      $0.01    11%    $0.27 

 FLDM       14-Feb     4Q    ($0.17)    ($0.21)      $0.04     NA       NA

 ILMN        7-Feb     4Q      $0.35      $0.31      $0.04    21%    $0.29 

 LMNX        6-Feb     4Q      $0.08      $0.07      $0.01    14%    $0.07 

 PACB        7-Feb     4Q    ($0.42)    ($0.50)      $0.08    57%  ($0.97)

 PKI         2-Feb     4Q      $0.62      $0.51      $0.11    41%    $0.44 

 TMO         1-Feb     4Q      $1.18      $1.15      $0.03    18%    $1.00 

 Process/Metrology/Motion Instrumentation 

 FEIC        8-Feb     4Q      $0.63      $0.63      $0.00    19%    $0.53 

 MKSI        1-Feb     4Q      $0.38      $0.24      $0.14   -43%    $0.67 

 MTSC        2-Feb     1Q      $0.98      $0.83      $0.15    14%    $0.86 

 NANO        8-Feb     4Q      $0.06      $0.00      $0.06     NM  ($0.34)

 VECO        6-Feb     4Q      $0.72      $0.67      $0.05   -56%    $1.62 

 ZIGO        2-Feb     2Q      $0.33         NA         NA    57%    $0.21 

 Lab Consumables/Equipment   

 LIFE        7-Feb     4Q      $1.06      $1.04      $0.02    18%    $0.90 

 SIAL        9-Feb     4Q      $0.91      $0.89      $0.02    10%    $0.83 

 Diversified Instrumentation   

 A          15-Feb     1Q      $0.69      $0.69      $0.00    15%    $0.60 

 MTD         8-Feb     4Q      $2.88      $2.79      $0.09    13%    $2.56 

 ROP         2-Feb     4Q      $1.23      $1.21      $0.02    12%    $1.10

 Company:  Exchange            Market Value   52 Week    Price      Change   Change  P/E  EPS       EPS   LTD/   FY   R&D/

                                (US $000s)    Low   High  2/29/2012  1 Month    YTD       12 Month  FY   Equity  ROE  Sales

 Laboratory Instrumentation            

 Accelrys: o                    $439,662      5.68  8.90   $7.94       6%      18%    NM   0.46    -0.44   5%    NM     28%

 Affymetrix: o                  $291,437      3.68  8.16   $4.17      -13%     2%     NM  -0.40    -0.40   39%   NM    24%

 Becton, Dickinson and Company:n$16,588,063  69.59  89.75  $76.22     -3%      2%     14   5.44     5.59   107%  26%   6%

 Bio-Rad Laboratories:n         $2,900,847   84.02 126.98  $101.92     0%      6%     16   6.26     6.26   51%   10%   9%

 Bruker: o                      $2,672,201   11.48  21.65  $16.03      13%     29%    29   0.55     0.55   53%   15%   11%

 Cepheid: o                     $2,589,524   24.47  45.00  $40.39      -8%     17%   1010  0.04     0.04   2%    1%    21%  

 Fluidigm: o                    $292,351     11.64  20.20  $14.42      -3%     10%    NM  -1.81    -1.81  -1%    NM    33%

 Harvard Bioscience: o          $124,068      3.80  6.26   $4.15       2%      7%     23   0.18     0.65   22%   21%   4%

 Illumina: o                    $6,400,510   25.57  79.40  $51.25      -1%     68%    83   0.62     0.62   82%   8%    19%

 Luminex: o                     $924,708     17.30  24.70  $22.47      14%     6%     66   0.34     0.34   4%    6%    18%

 MOCON: o                       $97,369      12.20  20.40  $17.20      8%      8%     18   0.98     0.98   1%    16%   6%

 Pacific Biosciences: o         $228,769     2.25   15.22  $4.17       -7%     49%    NM  -2.03    -2.03   3%    NM    225%

 PerkinElmer: n                 $3,043,089   17.45  28.75  $27.00      13%     35%    450  0.06    0.06    76%   0%    6%

 Pressure BioSciences: o        $4,340       0.50   1.40    $0.65      -10%    8%     NM  -0.77    -0.77   -2%   NM    98% 

 Sequenom: o                    $428,630     3.57   8.71   $4.32        0%     -3%    NM  -0.77    -1.69   13%   NM    92%

 Thermo Fisher Scientific: n    $21,283,458  43.06  65.86  $56.62      7%      26%    16   3.46    3.46    58%   9%    3%

 Transgenomic: o                $59,193      0.66   1.85   $1.20       1%      -7%    NM  -0.21   -0.04   -1301% NM    11% 

 Waters: n                      $8,114,714  70.88 100.00   $89.60      4%      21%    19   4.69    4.69    73%   35%   5%

 X-Rite: o                      $392,855     3.26  5.08    $4.53       0%     -2%    51    0.09    0.04    72%   2%    11%

 Process/Metrology/Motion Instrumentation           

 FEI Company: o                 $1,838,364   26.61 48.31   $44.52      1%      9%    18    2.51    2.51    2%   15%    9%

 MKS Instruments: o             $1,590,495   20.01 34.99   $29.95     -1%      8%    12    2.45    2.45    3%   13%    7%

 MTS Systems: o                 $777,510     28.00 50.00   $49.11      7%     21%    15    3.36    3.24    9%   24%    3%

 Nanometrics: o                 $404,949     13.49 21.56   $17.55     -13%    -5%    14    1.22    1.22    8%   14%    10%

 SDIX: o                        $41,549      1.51  2.78    $2.03       6%     10%    NM   -0.12   -0.05    NM   NM     11%

 Veeco Instruments: o           $1,048,368  20.35  57.67   $27.04      11%    30%    9    3.11     3.11    1%   17%    10%

 Zygo: o                        $347,116     9.40  20.12   $19.18      8%     9%     15   1.28     1.05    2%   15%    10%

 Lab Consumables/Equipment            

 Enzo Biochem: n                $99,580      1.98  4.88    $2.58       1%     15%    NM   -0.43    -0.34   0%   NM     8%

 Kewaunee Scientific: o         $21,406      7.90  12.73   $8.30      -11%    2%    830    0.01     0.72   29%  6%     NM

 Life Technologies: o           $8,730,777  35.30  56.71   $47.31     -2%     22%    24    1.99     1.99   67%  8%     10%

 Pall: n                        $7,437,863  39.81  64.55   $63.45      6%     11%    24    2.65     2.67   63%  21%    3%

 QIAGEN: o                      $3,616,302  12.47  22.20   $15.28     -6%     11%    38    0.40     0.40   28%  4%     11%

 Sigma-Aldrich: o               $8,758,380  56.18  76.16   $71.79      6%     15%    19    3.72     3.72   25%  21%    3%

 Techne: o                      $2,650,835  62.04  86.43   $71.59      5%     5%     24    3.04     3.02   2%   19%    9%

 Diversified Instrumentation            

 Agilent Technologies: n        $15,354,240 28.67  55.33   $43.62      3%     25%    15    2.96     2.85   64%  23%    10%

 AMETEK: n                      $7,688,162  30.87  49.71   $47.60      1%     13%    20    2.37     2.37   79%  19%    3%

 Danaher: n                     $37,585,111 39.34  56.09   $52.83      1%     12%    17    3.11     3.11   52%  11%    6%

 Illinois Tool Works: n         $26,941,362 39.12  59.27   $55.69      5%     19%    13    4.19     4.19   50%  21%    1%

 Mettler-Toledo Int'l: n        $5,838,811  126.10 193.56  $180.28     3%     22%    22    8.21     8.21   104% 35%    %5 

 Roper Industries: n            $9,029,546  64.90  96.91   $91.52     -2%      5%    21    4.34     4.34   49%   13%   4%

 Teledyne Technologies: n       $2,223,080  43.82  62.29   $59.60      5%     9%     9     6.84     6.84   52%   15%   5%

 Laboratory Instrumentation Stock Index                    634.89     0.9%   12.3%  24                     64%   11%   7%

 Process/Metrology/Motion Instrumentation                  548.61     2.3%   12.1%  13                     3%    15%   8%

 Lab Consumables/Equipment Stock Index                     647.52     3.0%   13.6%  24                     48%   12%   7%

 Diversified Instrumentation Stock Index                   147.70     2.3%   16.6% 17                     55%   16%   5%

 Dow Jones Industrial Average                              12,952.07  2.5%   6.0%      

 S&P 500                                                   1,365.68   4.1%   8.6%      

 NASDAQ Composite                                          2,966.89   5.4%   13.9%      

              

                                                  

                             Market      Market       Price

 Region                      Value       Value        2/12/2012   Change   Change  P/E   EPS       EPS    LTD/    FY    R&D/

                             (US $000s)  (Local 000s)  (Local)    1 month   YPD        12 months   FY     Equity  ROE   Sales Company                              

 Hitachi High-Technologies:t $3,227,298  ¥259,086,551  ¥1,881      13%      13%    14   ¥130.80   ¥129.07  11%    7%    3%

 HORIBA: t                   $1,400,830  ¥112,458,241  ¥2,659       9%      15%    13   ¥204.41   ¥204.41  16%    8%    8%

 JEOL: t                     $230,347    ¥18,492,185   ¥233         9%      21%    348  ¥0.67     ¥0.67    100%   0%    6%

 Precision System Science:os$35,922      ¥2,883,816    ¥31,600      8%      9%     NM  -¥4,698   -¥4,018   43%    NM    14%

 Shimadzu: t                 $2,619,329  ¥210,278,961  ¥711         7%      9%     21   ¥33.81    ¥36.00   26%    6%    3%

 Techcomp: si                $74,746     SGD 93,000   SGD 0.40      3%     -1%     10   $0.04     $0.04     9%    18%   0%

 European Shares             

 Abcam: I                    $991,152   £622,207      £3.39         1%     -7%     26   £0.13     £0.13     1%    32%   4%

 Halma: l                    $2,356,499 £1,479,320    £3.93         11%    19%    20    £0.19     £0.19     46%   20%   5%

 Oxford Instruments: l       $1,024,401 £643,080      £11.65        28%    23%    20    £0.58     £0.64     39%   34%   7%

 Renishaw: l                 $1,666,191 £1,045,971    £14.37        3%     43%    17    £0.87     £0.91     37%   30%   10%

 Scientific Digital Imaging:l$2,688     £1,687        £0.10        -5%     -5%    8     £0.01     £0.01     0%    NM    5%

 Spectris: l                 $32,317    £2,028,737    £17.45        14%     35%   16    £1.07     £1.07     75%   21%   7%

 Alpha MOS: c                $12,389    €9,216        €2.36        -4%     5%     NM   -€0.05    -€0.14     16%   NM    13%

 Analytik Jena: g            $78,009    €58,029       €11.15       -7%     4%     NM    €0.00    -€0.03     53%   NM    15%

 Sartorius: g                $952,758   €708,739      €37.86        7%     25%    13    €2.95     €2.29     85%   12%   6%

 Tecan: s                    $936,990   CHF 839,967  CHF 73.6      10%     16%    14   CHF 5.10   CHF 4.43  5%    7%    10%

 Datacolor: s                $62,424    CHF 55,960   CHF 370.0     -3%     -6%    17   CHF 21.48  CHF 21.48 8%    0%    12%  

 Biotage: st                 $820       SEK 5,376    SEK 6.8       26%     30%    NM  -SEK 4.82  -SEK 4.91  6%    NM    9%

 Exiqon:  no                 $80,894    DKK 447,440  DKK 13.2      22%     38%    NM  -DKK 0.93  -DKK 1.28  3%    NM    32%