For the fourth quarter of 2007, revenues for IBO’s Laboratory Sales Index grew 13.5% to $4,616 million and operating profits improved 23.0% to $833 million, leading operating margins 140 basis points higher to 18.0% of sales. For the year, the Laboratory Instrument Index reported similar revenue growth, climbing 13.5% to $17,030 million. Operating profits grew 23.4% to $2,814 million, while operating margins improved 130 basis points to 16.5% of sales. Acquisitions and favorable currency effects continued to positively impact revenue growth. For the fourth quarter, 13 of the 22 firms in the Laboratory Instrument Sales Index reported earnings before this issue’s publication. For the other nine companies, modest growth rates are included. Fourth quarter revenues for Affymetrix climbed 3.3% to $107.6 million, while adjusted operating income jumped 16.7% to $16.4 million. Product revenue grew 14.2% to $88.6 million, led by strong sales of arrays. Product-related revenue declined 34.8% to $11.4 million due to slow and variable demand from the pharmaceutical industry. Royalty and other revenue improved 7.0% to $7.0 million, while Perlegen revenue declined 77.3% to $0.6 million. Consumable revenue grew 11% to $79.9 million, with 60% and 40% of sales from RNA and DNA analysis products, respectively. Consumable revenue consist of probe arrays revenue of $61.6 million, reagent sales of $16.3 million, genotyping scientific service revenue of $1.4 million and Perlegen revenue. Instrument revenue remained constant at $10.7 million. The company shipped 44 GeneChip systems this quarter, bringing the total to 1,725 units shipped. For 2007, Affymetrix’s total revenues grew 4.5% to $371.3 million. Product revenue improved 7.3% to $279.8 million, while product-related revenue declined 8.3% $57.8 million. Royalty and other revenue grew 28.8% to $21.7 million, while Perlegen revenue fell 18.0% to $12.0 million. Consumable revenue climbed 8% to $272.5 million, including array revenue of $181.2 million, reagent revenue of $59.9 million, genotyping services revenue of $19.3 million and Perlegen revenue. Instrument sales were $37.8 million, while royalties and other revenues amounted to $21.7 million. For the year, adjusted operating income recorded a profit of $21.4 million compared to a loss of $5.0 million, while total gross margins declined over 100 basis points to 62.6% of sales. For 2008, the company expects revenue to grow 15% to $505–$525 million. Dionex reported fiscal second quarter sales of $98.0 million, an increase of 17.4%, including 6.3% growth from favorable currency transactions. Life sciences, environmental, chemical and petrochemical, and food and beverage industries showed strong demand, but sales to the electronic and power industries declined. Ion chromatography sales rose in the high teens, with equally strong demand for instruments and consumables. HPLC sales sustained strong growth led by the Ultimate 3000 HPLC. North American sales jumped 21%, European sales grew 17% (mid-single digits excluding currency effects) and Asia/Pacific sales improved 15% (11% excluding currency effects) led by China, Korea, India and Australia. Adjusted operating profit jumped 18.6% to $22.8 million, leading operating margins 24 basis points higher to 23.2% of sales. The company raised its year-end revenue forecast by 3% to $363–$370 million for growth of 11%–13%. Fiscal third quarter sales are estimated to be $92–$96 million for 8%–13% growth. Illumina’s quarterly revenue grew 86.3% to $112.6 million, including product and service revenue growth of 105.4% and 2.5% to $101.1 million and $11.5 million, respectively (see page 12). Consumable sales grew 73% to $56.2 million, driven by sales of the Infinium Array product line as well as sales of sequencing consumables. The Human1M BeadChip, which began shipping at the end of the second quarter, became the largest revenue generating array. Instrument sales, which accounted for 37% of total fourth-quarter sales, climbed 216% to $41.8 million due to strong demand for the Genome Analyzer. Adjusted operating profit climbed 37.6% to $22.8 million, while operating margins declined over 700 basis points to 20.3% of sales due to higher sales of instruments, which carry lower gross margins. For the year, Illumina’s revenues grew 98.7% to $366.8 million, including product and service revenue growth of 110% and 39% to $326.7 million and $40.1 million, respectively. Adjusted operating profit jumped 56.5% to $59.2 million, while both gross margins and operating margins declined approximately 400 basis points to 63.9% and 16.1% of sales due to a change in product mix. First-quarter and full-year 2008 revenues are expected to grow 52%–59% and 36%–43% to $110–$115 million and $500–$525 million, respectively. Luminex’s fourth quarter sales jumped 51.3% to $21.5 million, but the company reported an operating loss of $2.9 million compared to a marginal profit in the previous quarter (see page 12). Revenue for the Technology segment grew 31% to $18.6 million, while the Assay group sales amounted to $4.1 million, derived primarily from Tm Biosciences. Consumables and royalty revenues improved 48% and 25%, respectively. For the quarter, system shipments reached a record 250, while year-end system sales increased 21%, for a total of 4,979 systems. Full-year revenues grew 41.6% to $75.0 million, including a gain of 24.4% for the Technology group to account for 88% of total revenues. The Assay group recorded revenues of $12.6 million. Full-year adjusted operating loss widened to $10.0 million from a loss of $0.6 million in the previous year, while gross margins improved 60 basis points to 61.5% of sales. The company expects full-year 2008 revenue growth of 26%–40% to $95–$105 million. QIAGEN NV’s fourth quarter revenues grew 67.0% to $210.2 million and adjusted operating profits improved 54.6% to $51.8 million (see page 12). For 2007, revenues gained 39.5%, or 34% at constant currency, to $649.8 million, led by molecular diagnostic sales, which accounted for 50% of sales. Organically, annual sales rose 12%, including 4% growth from new products, while acquisitions contributed 22% growth. Consumables and Instrument revenues each grew 40% to account for 89% and 10% of sales, while “Other” revenue improved 30%. On a constant currency basis, Consumables, Instrument and “Other” revenues grew 34%, 35% and 22%, respectively. Sales to North America, Europe and Asia climbed 47%, 21% and 39% to make up 46%, 41% and 11% of revenues, respectively, at constant exchanges rates. Adjusted operating profits climbed 36.7% to $163.4 million, while operating margins declined 50 basis points to 25.2% of sales. For 2008, QIAGEN forecasts revenues to grow 35%-40% to $875–$905 million with 12% organic growth.