Apprehensions over the strength of the US economy and the sovereign debt crisis in Greece sent equity markets tumbling in early June. For the first half of the month, ending June 15, the Dow Jones Industrial Average slumped 5.4%. However, equity prices regained some ground as investors focused on the new austerity measures in Greece and marginally optimistic economic data. The final estimate for first-quarter US GDP growth was increased to 1.9% from the prior estimate of 1.8%. Manufacturing data strengthened but was mostly attributed to a buildup in inventory. The Dow, S&P and NASDAQ ended the month down 1.2%, 1.8% and 2.2%, respectively. For the first half of the year, the Dow, S&P 500 and NASDAQ are up 7.2%, 5.0% and 4.5%, respectively.

In alignment with the general market trend, three of the four IBO Stock Indexes traded lower in June. The Process/Metrology/Motion Instrumentation, Laboratory Instrumentation and Diversified Instrumentation Stock Indexes declined 4.9%, 1.2% and 0.6%, respectively. The Lab Consumables/Equipment Stock Index grew 1.5%.

Laboratory Instrumentation Stock Index

Beckman Coulter was removed from the Index following the completed acquisition by Danaher on June 30 (see IBO 2/15/11). For the month, the Laboratory Instrumentation Index slipped 1.2% to close at 712.55. Eleven companies declined in value, and ten advanced, led by Affymetrix, which climbed 30%. For the first half of the year, the Index is up 8.0%, with 16 companies in positive territory and five trading lower. Transgenomic boasts the highest return, having risen 165%. Helicos Biosciences has sustained the largest fall, declining 41% for both the month and year.

On June 1, Affymetrix named Dr. Frank Witney president and CEO (see IBO 6/15/11). Shares jumped 14.8% in the two days ending June 2. Sequenom secured $30 million in financing on June 2 from Silicon Valley Bank to help finance the development and commercialization of new products. The loan package consisted of a $20 million term loan and a $10 million revolving line of credit. Share climbed 4.0% that day. Illumina’s shares climbed 1.5% on June 8 following the announcement of a price reduction for its individual genome sequencing service from $19,500 to $9,500. On June 21, Luminex signed a definitive agreement to acquire the privately held molecular diagnostics company EraGen Biosciences (see page 2), leading shares up 2.3%.

Baird upgraded Affymetrix on June 2 to “Outperform” from “Neutral” and raised its price target 83% to $11 a share. On June 15, Wedbush upgraded the company to “Neutral” from “Underperform.” On June 21, Maxim Group initiated coverage of Affymetrix with a “Buy” rating. Brean Murray initiated coverage of Becton Dickinson on June 15 with a “Hold” rating. On June 21, Maxim Group initiated coverage of Illumina and Pacific Biosciences with “Buy” and “Hold” ratings, respectively.

Process/Metrology/Motion Instrumentation Stock Index

RAE Systems was removed from the Index following the completed acquisition by Vector Capital on June 16 (see IBO 5/31/11). The Process/Metrology/Motion Instrumentation Stock Index contracted 4.9% to 560.40 in June. Four companies declined, led by Veeco Instruments, which slumped 16%, and two improved. Year to date, the Index has gained 24.5%, with all six companies trading higher. Nanometrics had the highest return for both the month and year, rising 20% and 48%, respectively.

Nanometrics climbed 5.7% on June 7 following an announcement that the company will be added to the S&P SmallCap 600 index effective June 9. Veeco Instruments reported on June 14 a multi-unit order for its new MaxBright MOCVD system from Formosa Epitaxy, leading shares up 1.5%.

Lab Consumables/Equipment Stock Index

The Laboratory Consumables/Equipment Stock Index grew 1.5% in June to 669.58. Five companies finished higher, and two declined. Enzo Biochem recorded the highest return, rising 6%. For the first two quarters, the Index is up 6.9%, with four companies improving and three in negative territory. Techne has improved the most, climbing 27%, while Kewaunee Scientific has dropped 5% and 28% for the month and year, respectively.

Three companies reported earnings this month. On June 8, Pall reported better-than-expected fiscal third-quarter EPS (see page 12) and stated that full-year EPS would be near the high end of its pro forma guidance of $2.80–$2.90. Shares rose 0.8% the following day. Enzo Biochem beat fiscal third-quarter EPS estimates on June 9 and announced the following day that it had purchased the marketing rights to a HPV test developed by IncellDx. Shares traded marginally higher. On June 21, Kewaunee Scientific reported lower fiscal fourth-quarter EPS (see page 12) and a 48% decline in full-year EPS to $0.72 due to lower pricing and delayed orders. On June 28, QIAGEN reported that it was added to the Russell 1000 and the Russell 3000 Indices, leading shares up 1.2%.

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index slid 0.6% in June to 150.88. Four companies gained in value, and three declined. AMETEK led the Index, rising 3%, while ITW fell 3%. The second quarter ended with the Index up 12.5% and all seven companies trading higher. Agilent Technologies has shown the largest increase year to date, gaining 23%.

Danaher announced on June 13 a planned public offering of 17.5 million common shares to finance the acquisition of Beckman Coulter. Shares climbed 2.0% the next day. However, shares retracted 2.2% on June 15 as the company priced the stock offering at $51.75 per share. The company expects net proceeds of $877.4 million from the offering. Danaher also priced a senior notes offering, with estimated net proceeds of $1.79 billion, on June 20 to help fund the acquisition. Danaher completed the acquisition on June 30, leading shares up 1.6%. In other news, Auriga upgraded Mettler-Toledo on June 16 to “Buy” from “Hold” and imparted a $185 price target.

International

In June, four Pacific Region companies traded higher, while Techcomp contracted 7%. HORIBA showed the highest return, rising 5%. For the year, two companies have gained, and three have declined. On June 8, Hitachi High-Technologies projected fiscal 2012 EPS growth of 1.4% to ¥130.87 ($1.54).

For the month, half of the 14 European companies traded higher, and the other half dropped. Oxford Instruments improved the most, gaining 21%, while CyBio fell 10%. For the first half of the year, 11 European companies are in positive territory, two are down and one is unchanged. Renishaw has experienced the largest price increase, gaining 43%. Tecan has the largest decline, having fallen 10%.

Scientific Digital Imaging reported on June 1 a trading update for the fiscal year 2011 ending April 30. The company reported full-year revenue growth of more than 4% and a pre-tax loss of less than £0.2 million ($0.3 million). Shares fell 3.1%.

On June 14, Oxford Instruments announced preliminary full-year adjusted EPS growth ending March 31 of 133.1% to £0.42 ($0.67), leading shares up 2.4%. The company also reported the acquisition of two businesses (see IBO 6/15/11) and a placing of five million shares at £7.75 ($12.6) for a total value of £39 million ($63 million) to fund the purchases. On June 21, Halma reported full-year 2011 adjusted EPS growth ending April 2 of 21.3% to £0.20 ($0.33) (see page 12). The company also proposed a dividend increase of 7.1% to £0.09 ($0.14) for the year. Shares climbed 1.7%.

 IBO Instrument Industry Stock Index

  Lab Instrument Stock Index          S&P 500

 Jun-09    479.85                     220.41

 Jul-09    522.15                     236.75

 Aug-09    528.47                     244.70

 Sep-09    543.19                     253.44

 Oct-09    535.42                     248.43

 Nov-09    548.41                     262.68

 Dec-09    565.94                     267.35

 Jan-10    546.93                     257.47

 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    660.07                     301.53

 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    721.22                     322.52

 2011                                  2010

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

 Lab Consumables/Equipment Index

 ENZ    9-June     3Q    ($0.05)  ($0.11)      $0.06    58%     ($0.12)

 KEQU  21-June     4Q     $0.10      NA          NA    -50%      $0.20

 PLL    8-June     3Q     $0.72    $0.71       $0.01    24%      $0.58

 Market Value    52 Week      Price    Change    Change           EPS         EPS     LTD/     FY     R&D/

 Company:Exchange   (US $000s)    Low   High   6/30/2011  1 Month    YTD      P/E  12 Month      FY    Equity    ROE    Sales

 Laboratory Instrumentation           

 Accelrys:o          $401,630     5.96   8.95     $7.11     -2%      -14%     N/A    -0.45      -0.44     4%      N/A     28%

 Affymetrix:o        $565,147     3.75   8.07     $7.93     30%       58%     N/A    -0.01      -0.15    38%      N/A     22%

 Becton, Dickinson 

 & Company:n      $19,428,491   66.47   89.73    $86.17     -2%        2%     17      5.19       4.94    72%      24%      6%

 Bio-Rad Lab:n     $3,388,511   85.88  126.98   $119.36     -4%       15%     18      6.51       6.59    54%      12%      9%

 Bruker:o          $3,394,012   10.52   21.65    $20.36      3%       23%     37      0.55       0.58    32%      23%     11%

 Caliper Life Sc:o   $422,142    3.10    8.15     $8.11     13%       28%    116      0.07       0.08    13%       5%     15%

 Cepheid:o         $2,252,570   13.81   34.96    $34.64      8%       52%    N/A     -0.02      -0.10     8%      N/A     20%

 Fluidigm:o          $180,345   13.13   18.24    $16.77     12%       20%    N/A     -7.52      -8.94    11%      N/A     39%

 Harvard Bioscience:o$157,219    3.22    6.26     $5.33     -6%       31%      8      0.64       0.65    24%      21%      4%

 Helicos BioSciences:o $6,029    0.06    0.85     $0.07    -41%      -41%      0      0.87       0.87    60%      10%     20%

 Illumina:o       $11,507,644   41.08   76.81    $75.15      4%       19%     86      0.87       0.87    60%      10%     20%

 Luminex:o           $884,175   14.25   21.89    $20.90      0%       14%    116      0.18       0.12     5%       2%     17%

 MOCON:o              $84,304   10.02   15.49    $15.37      4%       19%     17      0.91       0.84     1%      16%      7%

 PacificBiosciences:o$617,247   10.27   17.47    $11.70     -2%      -26%    N/A     -2.73     -14.10     2%      N/A     N/A

 PerkinElmer:n     $3,098,417   18.69   28.75    $26.91     -3%        4%     22      1.20       1.15    46%       7%      6%

 PressureBioSciences:o $2,880    0.98    2.29     $1.02     -9%      -27%    N/A     -1.20      -1.35     1%      N/A     92%

 Sequenom:o          $746,914    5.25    8.46     $7.55     -5%       -6%    N/A     -1.55      -1.69     3%      N/A     92%

 ThermoFisher:n   $25,408,294   41.74   65.82    $64.39     -2%       16%     25      2.61       2.53    26%       7%      3%

 Transgenomic:o       $86,263    0.30    1.79     $1.75     16%      165%    N/A     -0.09      -0.04   313%      N/A     11%

 Waters:n          $8,933,787   60.01  100.00    $95.74     -3%       23%     22      4.28       4.06    50%      36%      5%

 X-Rite:o            $423,386    3.13    5.08     $4.97      4%        9%    N/A     -0.12       0.04    89%       2%     11%

 Process/Metrology/Motion Instrumentation  

 FEI Company:o     $1,607,837   16.51   40.24    $38.19     -2%       45%     22      1.77       1.34    19%       8%     10%

 MTS Systems:o       $662,504   26.17   48.72    $41.83      2%       12%     20      2.14       1.14    10%      11%      4%

 Nanometrics:o       $444,309    8.00   20.00    $18.99     20%       48%      7      2.62       2.43    10%      33%     10%

 SDIX:o               $40,972    1.52    3.13     $2.01     -4%       14%    N/A     -0.06      -0.05     1%      N/A     11%

 Veeco Instr.:o    $2,058,926   29.54   56.19    $48.41    -16%       13%      7      6.84       6.13    12%      34%      1%

 Zygo:o              $241,979    6.50   16.51    $13.22     -7%        8%     14      0.96      -0.37     4%      N/A     14%

 Lab Consumables/Equipment           

 Enzo Biochem:n      $163,532    3.33    5.83     $4.25      6%      -20%    N/A     -0.38      -0.59     0%      N/A     10%

 Kewaunee Scientific:o$25,531    9.62   14.25     $9.85     -5%      -28%     14      0.72       0.72    30%       6%      0%

 Life Techn.:o     $9,698,871   41.10   57.25    $52.07      0%       -6%     26      2.01       1.99    70%       9%     10%

 Pall:n            $6,675,794   31.84   59.50    $56.23      0%       13%     24      2.31       2.03    65%      20%      3%

 QIAGEN:o          $4,572,066   16.86   22.20    $19.02     -4%       -3%     33      0.58       0.60    41%       6%     12%

 Sigma-Aldrich:o   $9,025,740   48.80   73.60    $73.38      4%       10%     22      3.28       3.12    24%      19%      3%

 Techne:o          $3,100,864   55.63   83.82    $83.37      2%       27%     28      2.95       2.94    N/A      22%      9%

 Diversified Instrumentation           

 Agilent Tech.:n  $18,144,050   26.68   55.33    $51.11      2%       23%     20      2.52       1.94    78%      20%     11%

 AMETEK:n          $7,171,787   26.46   47.00    $44.90      3%       14%     23      1.96       1.76    84%      16%      2%

 Danaher:n        $36,474,501   35.24   56.09    $52.99     -3%       12%     19      2.82       2.64    34%      13%      5%

 Illinois Tool 

 Works:n          $28,398,088   40.33   58.79    $56.49     -1%        6%     16      3.61       3.03    39%      16%      1%

 Mettler-Toledo

 Int'l.:n          $5,615,300  106.22  193.56   $168.67      1%       12%     24      7.11       6.80   125%      30%      5%

 Roper Industries:n $8,176,145  54.21   88.76    $83.30      0%        9%     23      3.63       3.34    59%      12%      4%

 Teledyne Technol:n $1,873,392  35.34   53.35    $50.36      3%       15%     15      3.45       3.27    87%      15%      3%

 Laboratory Instrumentation Stock Index          712.55   -1.2%      8.0%     22                         39%      10%      7%

 Process/Metrology/Motion Instrumentation        560.40   -4.9%     24.5%     11                         13%      21%      5%

 Lab Consumables/Equipment Stock Index           669.58    1.5%      6.9%     25                         52%      12%      7%

 Diversified Instrumentation Stock Index         150.88   -0.6%     12.5%     20                         48%      15%      4%

 Dow Jones Industrial Average                 12,414.34   -1.2%      7.2%      

 S&P 500                                       1,320.64   -1.8%      5.0%      

 NASDAQ Composite                              2,773.52   -2.2%      4.5%

 Price         

 Region                    Market Value   Market Value  6/30/2011  Change   Change         EPS     EPS      LTD/    FY   R&D/

 Company                    (US $000s)    (Local 000s)   (Local)   1 Month    YTD   P/E  12Month   FY      Equity  ROE  Sales

 Pacific Shares             

 Hitachi High-Technologies:t $3,002,782   ¥241,523,046    ¥1756      3%      -7%     14  ¥129.07   ¥129.07   11%     7%   3%

 HORIBA:t                    $1,367,014   ¥109,953,212    ¥2600      5%      13%     13  ¥205.36   ¥187.11   17%     9%   8%

 JEOL:t                        $263,456    ¥21,190,615     ¥267      4%      -6%     76    ¥3.51     ¥3.51   93%     1%   5%

 Shimadzu:t                  $2,698,904   ¥217,081,234     ¥734      2%      16%     35   ¥20.77    ¥20.77   26%     6%   4%

 Techcomp:si                    $76,625      SGD94,163  SGD0.41     -7%      -4%      8    $0.04     $0.04    8%    18%   0%

 European Shares             

 Halma:l                     $2,497,941     £1,559,894    £4.14      5%      15%     22    £0.19     £0.19   46%    20%   5%

 Oxford Instruments:l          $746,935       £466,440    £9.20     21%      31%     14    £0.64     £0.64   28%    34%   7%

 Renishaw: l                 $2,043,299     £1,275,983   £17.53      4%      43%     29    £0.61     £0.29   28%    13%  16%

 Scientific Digital Imaging:l    $4,295         £2,682    £0.16     -3%       0%    N/A    £0.00     £0.01    0%    13%   9%

 Spectris:l                     $29,522     £1,843,536   £15.92      1%      21%     20    £0.82     £0.82   36%    19%   8%

 Alpha MOS:c                    $11,467        € 7,934   € 3.03     -7%      14%    N/A  -€ 0.14   -€ 0.14   11%    N/A  N/A

 Analytik Jena:g                $69,821       € 48,309   € 9.30     -4%      11%     93   € 0.10    € 0.34   53%     5%  10%

 Biohit:h                       $47,999       € 33,210   € 2.40     -8%      14%    N/A  -€ 0.01    € 0.00   69%     2%   6%

 CyBio:g                         $7,414        € 5,130   € 1.02    -10%       1%      7   € 0.14    € 0.14    2%    13%   6%

 Sartorius:g                   $684,563      € 473,647  € 31.75     -7%      13%     12   € 2.58    € 2.29   88%    12%   6%

 Tecan:s                       $961,309     CHF802,876 CHF 70.4      1%     -10%     16  CHF4.43  CHF 4.43    5%     7%  10%

 Datacolor:s                    $81,599     CHF68,150 CHF 428.0      7%      -2%     15 CHF29.26 CHF 29.26    5%     0%   9%

 Biotage:st                        $941      SEK 5,973  SEK 6.8     -4%       1%    N/A-SEK 4.93 -SEK 4.91    6%    N/A   9%

 Exiqon:no                      $84,619    DKK 436,692 DKK 13.1     15%      38%    N/A-DKK 1.06 -DKK 1.28    4%    N/A  32%