First-quarter revenue growth for IBO’s Laboratory Instrument Sales Index slowed to 2.4%, 2.6% excluding currency, to $5,784 million. Operating profit climbed 8.4% to $1,251 million, and operating margin fell 90 basis points to 18.3% of sales. Financial estimates are included for Oxford Instruments, Spectris and Tecan, which have not yet reported first-quarter financial data. QIAGEN was removed from the Index due the size of the company’s molecular diagnostics business.

Affymetrix’s first-quarter sales fell 11.5% to $65.2 million (see page 12) due to lower academic sales in North America and weak consumable sales, primarily for in vitro transcription (IVT) arrays. Overall, Consumables revenue fell 14.4% to make up 82% of sales. Instruments, and Services and Other sales grew 2.0% and 7.9% to account for 7% and 10% of sales, respectively. By business unit, Expression sales contracted 20.4% to account for 49% of sales. IVT array sales accounted for 60% of Expression revenue. However, the 4% sequential decline was slightly better than expected, as Panomics product sales climbed 15%, or 20% sequentially. Genetic Analysis and Clinical Applications sales improved 4.6% to represent 29% of sales. Demand for the CytoScan HD and Axiom Genotyping systems was particularly strong but was partially offset by lower sales of SNP 6.0 arrays. Clinical applications represented 38% of Genetic Analysis and Clinical Applications sales. Life Science Reagents sales declined 7.9% to account for 13% of sales, as a result of lower demand for membrane extraction detergent products and the transition to a direct-sales force. Asia and Europe performed well due to increased sales personnel, while US sales lagged. Operating loss was $3.4 million, compared with a profit of $3.1 million a year ago. Gross profit margin fell 514 basis points to 58.1% of sales. The company’s outlook was unchanged from the fourth quarter (see IBO 2/15/2012).

Analytik Jena’s fiscal second-quarter sales grew 10.2% to €22.9 million ($30.1 million = €0.76 = $1) (see page 12). Operating profit jumped 286.3% to €1.4 million ($1.9 million). Gross profit margin improved 298 basis points to 50.7% of sales. Analytical Instrument revenue climbed 16.2% to account for 67% of sales due to a new distribution agreement for X-ray fluorescence systems. Segment operating profit soared 192.8% to $1.7 million ($2.2 million). Life Science revenue fell 5.4% to represent 26% of sales as a result of lower CyBio sales. Segment operating loss widened 19.8% to $0.4 million ($0.5 million). For the company, Asian sales jumped 30.7% to account for 42% of revenues, including strong demand in Japan. Sales in Germany and to America grew 13.2% and 6.8% to make up 28% and 7%, respectively. Sales to other European countries slumped 15.8% to account for 21%. Fiscal 2012 sales are projected to grow 5%–8% to €91–€93 million ($121–$124 million), with all three segments contributing.

Harvard Bioscience’s first-quarter revenues grew 7.6%, 4.2 organically, to $28.3 million (see page 12). Acquisitions boosted sales growth by 4.4%, while currency lowered revenue growth by 1.0%. Orders improved 6% organically. Sales for each of the Harvard Apparatus, Denville and Hoefer businesses grew organically. Adjusted operating income fell 18.6% to $2.1 million due to increased R&D expenses, especially for the Regenerative Medicine Device business. Gross profit margins improved 30 basis points to 47.3% of sales due to product mix. The company reaffirmed its full-year revenue outlook of $115–$120 million for growth of 5%–10%. Second-quarter sales are projected to grow 4%–7% to $28–$29 million.

For the fiscal fourth quarter ending March 31, Shimadzu’s Analytical and Measuring Instrument (AMI) division sales grew 3.2% to ¥49,755 million ($628.1 million = ¥79.21 = $1) to represent 56% of total revenues (see page 12). Segment operating profit fell 9.4% to ¥7,535 million ($95.1 million). Fiscal full-year AMI division sales grew 8.9% to ¥153,249 million ($1,941 million = ¥78.95 = $1) to represent 58% of total revenues. Within Japan, sales benefited from new products, increased capital and R&D spending, and higher sales of LC and MS products to academic and government customers. Chinese sales were strong, especially for LC and MS in food safety markets and for GC in petrochemical markets. North American sales increased due to strong demand for high-end MS systems and for LC products from pharmaceutical markets. European sales improved as a result of higher sales of microorganism-inspection products. Segment operating product expanded 6.7% to ¥15,130 million ($191.6 million).

Luminex’s first-quarter revenues grew 12.6%, 5% excluding the acquisitions of EraGen Biosciences (see IBO 6/30/11), to $48.7 million (see page 12). Assay revenue jumped 80.5% to make up 35% of sales due to the acquisition and higher sales of Cystic Fibrosis products. Royalty and Other revenues improved 13.6% and 14.3% to account for 17% and 9%, respectively. Consumable revenue fell 20.7% to account for 24% of sales due to one partner’s decline in bulk purchases. Despite increased demand, Systems revenue fell 8.9% to make up 14% due to product mix. The number of multiplexing analyzers shipped increased 5.1% to 206, including a 44.7% increase in MAGPIX placements to 55 units and the sale of 13 sample preparation systems. Operating profit fell 24.4% to $8.7 million, and gross margin slipped 173 basis points to 69.3% of sales. Revenue for the Technology and Strategic Partnerships segment declined 5.4% to $30.2 million, and operating income slumped 51.5% to $4.2 million due to lower consumable sales. Sales for the Assays and Related Products segment grew 63.2% to $18.5 million, with infectious disease and genetic testing representing 65% and 35% of segment sales, respectively. Segment operating profit was $1.4 million, compared with a loss of $0.4 million a year ago. Luminex reaffirmed its 2012 revenue forecast of $205–$215 million for growth of 11%–17%, including flat Consumables sales.

In the first quarter, SDIX revenues fell 14.0% to $5.6 million due to timing of in vitro diagnostic orders and lower demand from biopharmaceutical customers. As a result, Life Science sales declined 11% to $4.0 million, but were partially offset by revenues of $920,000 from an agreement with Becton Dickinson’s BD Diagnostics segment. Food Safety product sales fell 18% to $1.5 million due to lower sales of E. coli products. Ag-GMO product sales fell 45% to $0.2 million. Adjusted operating loss widened 14.3% to $1.2 million, but gross margin improved 108 basis points to 56.7% of sales due to the agreement with BD.

 Column Chart: Quarterly Organic Sales Change 

            January 2009–March 2012

          Q1      Q2       Q3      Q4

 2009   -2.2%   -5.7%    -4.5%    0.5%

 2010    8.0%    9.1%    10.5%    7.1%

 2011    7.1%    8.3%     5.7%    7.4%

 2012    2.5%

 Column Chart: Quarterly Operating Profit Margins 

            January 2009–March 2012

          Q1      Q2      Q3      Q4

 2009   17.4%   17.9%   18.3%   19.9%

 2010   19.8%   18.9%   19.8%   19.9%

 2011   19.2%   18.9%   19.0%   20.5%

 2012   18.4%

 Laboratory Instrument Index              % Change  

                                  2009     2010     2011     2012     2009–10   2010–11   2011–12

 Total Annual Revenues ($M)    $19,756  $21,505  $23,456    -----       8.9%      9.1%     -----

 Annual Oper. Profits ($M)      $3,676   $4,308   $4,883    -----      17.2%     13.4%     -----

 1st Quarter Revenues ($M)      $4,713   $5,241   $5,647   $5,784      11.2%      7.8%     2.4%

 1st Quarter Oper. Profits ($M)   $822   $1,040   $1,154   $1,251      26.5%     10.9%     8.4%