Despite certain companies being negatively affected by the natural disaster in Japan, first-quarter revenues for IBO’s Laboratory Instrument Sales Index climbed 6.9% to $5,600.42 million, including a loss of 1.0% from currency transactions. Operating profit improved 11.6% to $1,160.42 million, but operating margin slipped 60 basis points to 19.2% of sales. Financial estimates are included for Oxford Instruments, Spectris and Tecan, which have yet to report first-quarter financial data.

First-quarter revenues for Affymetrix fell 8.1%, 9% excluding currency, to $73.7 million. Sales were negatively impacted by a shift toward lower-priced array plate formats and weak demand from whole-genome association studies. Product sales fell 8.1% to account for 92% of sales. Consumables revenue declined 5.0% to $62.9 million, including a drop of 3.9% and 9.2% for RNA and DNA revenues to $36.5 million and $21.7 million, respectively. Other Consumables, which include reagents and biochemical products, grew 7.0% to $4.6 million. Despite lower RNA revenues, sales for in-vitro transcription reagents, gene-level products and microRNA arrays grew. Within the DNA business, sales of products for cytogenetics and cancer grew by more than 20%. Instruments revenue tumbled 35.8% to $4.6 million due to lower placements of the GeneTitan system. Service revenue improved 1.0% to $4.5 million, and Royalty and Other revenue slumped 23.1% to $1.8 million. Sales to the Americas were mixed as industrial demand was strong but academic revenues were weak due to competing technologies. Demand from Asia remained strong, while Europe was challenged. Operating expenses were reduced by 13%, yielding an operating profit of $3.1 million, compared with a loss of $2.7 million a year ago. Gross profit margin climbed 445 basis points to 63.2% of sales due to a shift in product mix and lower material expenses.

Analytik Jena’s fiscal second-quarter sales grew 7.7% to €20.7 million ($28.4 million = €0.73 = $1) (see page 12). Operating profit declined 66.1% to €0.4 million ($0.5 million) due to increased selling and administrative expenses. Gross profit margin slipped 61 basis points to 47.8% of sales. Analytical Instrumentation revenue climbed 10.1% to €13.2 million ($18.1 million) due to strong demand for instrumentation and LIMS systems. Segment operating profit fell 62.2% to €0.6 million ($0.8 million) due to product development and sales expansion. Life Science revenue grew 7.1% to €6.3 million ($8.7 million) due to a weak year-over-year comparison, and operating loss narrowed 55.4% to $0.4 million ($0.5 million). Optic sales contracted 10.6% to €1.2 million ($1.6 million), and operating profit dropped 59.5% to €0.1 million ($0.2 million). Sales within Germany and to America fell 22.7% and 9.2% to account for 27% and 7% of revenues, respectively. Total company sales to other European countries and Asia rose 41.1% and 20.7% to represent 28% and 36% of sales, respectively. For fiscal 2011, the company anticipates higher revenue growth for all three segments.

Harvard Bioscience’s first-quarter revenues were flat but declined 2.1% organically to $26.3 million (see page 12). Currency transactions and acquisitions contributed 0.9% and 1.3% to revenue growth, respectively. Sales were negatively impacted by temporary events, including the earthquake in Japan and lower NIH funding. Adjusted operating income fell 26.7% to $2.6 million due to increased sales and marketing expenses. Gross profit margins declined 160 basis points to 47.0% of sales due to unfavorable product mix. Full-year sales for the core Life Science Research Tool business are projected to grow 5%–6% to $113–$115 million and 8%–11% to $28–$29 million for the second quarter.

For the fiscal first quarter, HORIBA’s Process and Environmental Instruments & Systems (P&E) revenue slipped 3.2% to ¥2,917 million ($35.4 million = ¥82.32 = $1) (see page 12). Sales were led by stable demand for air pollution and stack gas analyzers, but were offset by currency translation. Sales to Japan and the Americas declined 7.4% and 19.0% to account for 70% and 7% of P&E revenue, respectively. Asian and European revenues improved 4.8% and 30.9% to make up 9% and 15% of segment revenue, respectively. P&E operating income improved 2.6% to ¥246 million ($3.0 million). Sales for the Scientific Instruments & Systems segment grew 0.3% to ¥5,376 million ($65.3 million), but operating income declined 42.3% to ¥188 million ($2.3 million) due to increased R&D expenses. Sales to Japan and the Americas contracted 4.1% and 5.3% to make up 42% and 17% of Scientific sales, respectively. Asian and European sales grew 6.8% and 9.0% to represent 18% and 24% of segment sales, respectively. The company maintained its full-year P&E segment revenue and operating income forecast of ¥12,000 million ($146 million) and ¥1,000 million ($12 million), respectively. Full-year sales for the Scientific segment were reaffirmed at ¥21,000 million ($255 million), but segment operating income was lowered by 8% to ¥1,100 million ($13 million).

Luminex’s first-quarter revenues climbed 30.1% to $43.3 million (see page 12), led by strong Consumable sales, which jumped 52.8% to account for 35% of sales. Assay and System revenues grew 25.1% and 14.6% to make up 22% and 18% of sales, respectively. The number of multiplexing analyzers shipped was equal to a year ago at 197, including 38 MAGPIX and 34 BSD sample handling systems. Royalty and All Other revenues improved 24.1% and 16.4% to make up 17% and 9% of sales, respectively. Operating profit soared 121.3% to $8.3 million, and gross margin improved 251 basis points to 71.0% of sales. Revenue for the Technology and Strategic Partnerships segment grew 26.6% to $31.9 million, and operating income soared 101.5% to $8.7 million. Sales for the Assays and Related Products segment grew 41.1% to $11.3 million, and operating loss narrowed 33.9% to $0.4 million. Luminex reaffirmed its 2011 revenue forecast of 15%–20% growth to $163–$170 million. The company projected long-term annual revenue growth of more than 20%.

In the first quarter, SDIX revenues climbed 11.7% to $7.5 million (see page 12). Life Science revenues grew 19% to $4.5 million, driven by a 30% increase in IVD and biopharmaceutical product sales. Kit revenues were mixed, as Food Safety product sales jumped 28% to $1.8 million, Water & Environmental product sales were flat at $0.9 million, and Ag-GMO product sales fell 50% to $0.3 million. Adjusted operating loss widened by 43.7% to $0.7 million due to increased sales, marketing and R&D investments. Gross margins declined 320 basis points to 55.7% of sales due to product mix and distribution expansion.

 Column Graph: Quarterly Sales Change, January 2008—March 2011

         Q1      Q2      Q3      Q4

 2008    10.2%   13.0%   6.6%   -0.8%

 2009    -6.4%  -10.4%  -5.6%    4.7%

 2010    11.2%    8.9%   9.6%    6.1%

 2011     6.9%

 Column Graph: Quarterly Operating Profit Margins, January 2008—March 2011

 Year    Q1      Q2      Q3      Q4

 2008    17.6%   17.2%   18.1%   19.1%

 2009    17.4%   17.9%   18.3%   19.9%

 2010    19.8%   18.9%   19.8%   19.9%

 2011    19.2%

 Laboratory Instrument Index, Total                                     % Change  

                              2008       2009       2010       2011     08/09      09/10      10/11

 Total Annual Revenues ($M)   $20,660    $19,756    $21,501    -----    -4.4%       8.8%      -----

 Annual Oper. Profits ($M)     $3,719     $3,676     $4,314    -----    -1.2%      17.4%      -----

 Annual Oper. Profits (%)       18.0%      18.4%      19.6%    -----    -----      -----      -----

 1st Quarter Revenues ($M)     $5,037     $4,713     $5,239   $5,600    -6.4%      11.2%       6.9%

 1st Quarter Oper. Profits ($M)  $881       $822     $1,040   $1,160    -6.6%      26.5%      11.6%

 1st Quarter Oper. Profits (%)  17.6%      17.4%      19.8%    19.2%    -----      -----      -----