Invitrogen Announces Third Quarter 2008 Financial Results

Share Name	Share Symbol	Market	Type
Invitrogen (MM)	NASDAQ:IVGN	NASDAQ	Common Stock

Invitrogen (NASDAQ:IVGN)
Historical Stock Chart

From Mar 2020 to Mar 2025

Invitrogen Corporation (Nasdaq:IVGN) today announced results for its third quarter ended September 30,�2008. Revenues for the third quarter were $362�million, an increase of�15�percent over the $315�million reported for the third quarter�of 2007. �We�re extremely pleased with our performance this quarter and our ability to once again deliver value to our shareholders,� said Gregory T. Lucier, Chairman and Chief Executive Officer of Invitrogen. �These results demonstrate we can continue to optimize our core business while dedicating sizable resources to make our integration with Applied Biosystems a success.� Third quarter diluted earnings per share were $0.26, which includes $0.06 per share of stock option expensing, $0.12 per share of amortization expense, $0.19 per share of in-process R&D expenses and $0.06 of business integration costs and other expenses. On a non-GAAP basis, which excludes these items, diluted earnings per share were $0.69, an increase of�21�percent over the same period last year. Analysis of Third Quarter 2008 Results Third quarter�2008 revenues increased�15�percent over the previous year as a result of increased royalty revenue, improved price and volume in all regions, as well as positive currency benefits. Organic revenue growth, without the impact from currency and acquisitions, was 10 percent. Revenue from foreign exchange contributed approximately $11 million, or three points of growth. Gross margin, on a non-GAAP basis,�was 65.6 percent in the third quarter. This represents�an�increase�of�120�basis points from the same period in the prior year, due to positive price realization and increased royalty and licensing revenue. Non-GAAP operating margin was 26.2 percent in the third quarter, representing an increase of 160 basis points over the same period in 2007, mainly as a result of improved gross margin and operating expense leverage. Non-GAAP tax rate was 28 percent, two and a half points below prior year levels. The decrease was a result of earnings growth in lower tax rate jurisdictions and lower than expected taxes due on prior year returns, net of the loss of the federal R&D tax credit, which expired at the end of 2007. Weighted shares outstanding�were�97 million in the third quarter. Cash flow from operating activities for the third quarter was $86 million. Third quarter capital expenditures were $25 million and free cash flow was $61 million. The company ended the third quarter with $676 million in cash & short-term investments. The following analysis of diluted earnings per share identifies specific items that affect the comparability of results between periods. Reconciliations between Invitrogen�s results and non-GAAP results for the periods reported are presented in the attached tables and on the company�s Investor Relations page at www.invitrogen.com. � � Three Months Ending September 30, 2008 � 2007 � % GAAP earnings per share $0.26 $0.32 (19%) Amortization of acquisition related expenses $0.12 $0.18 (33%) Stock option expense (FAS123R) $0.06 $0.06 -- In-process R&D expense $0.19 -- n/a Business integration and other charges $0.06 $0.01 n/a Non-GAAP earnings per share $0.69 $0.57 21% Segment and Geographic�Highlights BioDiscovery revenue was $249�million in the third quarter, an increase of�13�percent over the same period the previous year. Organic revenue growth, which excludes the impact from currency, was 10 percent. Revenue growth was a result of positive price realization, volume growth and royalty and licensing revenue. BioDiscovery non-GAAP gross margins increased 230 basis points year-over-year due to positive price realization, royalty and licensing revenue growth and mix. Cell�Systems revenue was $112�million in the third quarter 2008, an increase of 19 percent�over the same period the previous year. Organic revenue growth, which excludes the impact from currency and acquisitions, was 10 percent. Cell culture research had another quarter of low double digit growth and production media and sera grew in the double digits, as expected. Cell Systems non-GAAP gross margins decreased by 90 basis points year-over-year, as expected, mostly attributable to a higher mix of revenue from production sera and acquisitions, which have lower gross margins. Revenue growth, excluding impact from currency, by region for the third quarter was 11 percent in the Americas,�8 percent in Europe and�11 percent in Asia Pacific. Orders transacted through e-commerce channels�were 63 percent in the Americas during the third quarter and over 50 percent globally. New technology highlights included: -- Further expansion into the applied markets with the launch of the Dynabeads(R) MAX Legionella, which enables a unique process for targeting and concentrating legionella from environmental water samples. � -- Stem cell offerings expanded even further by licensing of the engineered stem cell line BG01 Olig2-GFP from the Buck Institute for Age Research, used in the study of neural cells in neurodegenerative disease. � -- Purchase of Visigen Biotechnologies, a small technology acquisition that further enhances Invitrogen's intellectual property estate in single molecule DNA sequencing. The company was also selected as a new member of the Dow Jones Sustainability World Index (DJSI World) and named the leader of the biotechnology sector for 2008. Invitrogen ranked among the top 10 percent of the world's 2,500 largest companies in terms of sustainability for its performance in corporate governance, labor practices, talent development, community involvement, workplace safety, climate change and environmental management. Fourth Quarter 2008 Outlook Subject to the risk factors detailed in the Safe Harbor Statement section of this release, the company expects fourth quarter 2008 organic revenue, excluding the impact from currency and acquisitions, to increase in the mid single digits. Non-GAAP earnings per share are expected to increase at a rate of one and a half to two times that of total revenue. The company will provide further detail on its business outlook during the conference call today. Conference Call and Webcast Details The company will discuss its financial and business results as well as its business outlook on its conference call at 4:30 p.m. Eastern Time today. This conference call will contain forward-looking information. The conference call will include a discussion of �non-GAAP financial measures� as that term is defined in Regulation G. For actual results, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the company�s financial results determined in accordance with GAAP, as well as other material financial and statistical information to be discussed on the conference call will be posted at the company�s Investor Relations website at www.invitrogen.com. The webcast can be accessed on Invitrogen�s website at www.invitrogen.com on the Investor Relations home page. Alternatively, callers may listen to the live conference call by dialing 800.299.0433 (domestic) or 617.801.9712 (international) and use passcode 59590328. A replay of the webcast will be available on the Company�s website through Tuesday, November 11, 2008. About Invitrogen Invitrogen Corporation (Nasdaq:IVGN) provides products and services that support academic and government research institutions and pharmaceutical and biotech companies worldwide in their efforts to improve the human condition. The company provides essential life science technologies for disease research, drug discovery, and commercial bioproduction. Invitrogen's own research and development efforts are focused on breakthrough innovation in all major areas of biological discovery including functional genomics, proteomics, stem cells, cell therapy, and cell biology -- placing Invitrogen's products in nearly every major laboratory in the world. Founded in 1987, Invitrogen is headquartered in Carlsbad, California, and conducts business in more than 70 countries around the world. The company employs approximately 4,700 scientists and other professionals and had revenues of approximately $1.3 billion in 2007. For more information, visit www.invitrogen.com. Statement Regarding Use of Non-GAAP Measures We regularly have reported non-GAAP measures for net income and earnings per share as non-GAAP results. These measures are provided as supplementary information and are not a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP measures are limited because they do not reflect the entirety of our business results. We define our non-GAAP results as our GAAP results excluding the after tax impact of the following: Acquisition related amortization; In process research and development expenses; Acquisition related gains and losses; Asset impairment charges related to a portfolio review; Business consolidation costs required to realize revenue and cost synergies from combining our acquired entities with our existing operations; Certain significant one time events that are unlikely to recur; and Share based payment expenses as a result of adoption of FAS123R. Management views these excluded items as not indicative of the operating results or cash flows of its operations and excludes these items as a supplemental disclosure to assist investors in evaluating and assessing our past and future operational performance. This presentation of our non-GAAP results is consistent with how management internally evaluates the performance of its operations. We encourage investors to carefully consider our results under GAAP, as well as our non-GAAP disclosures and the reconciliation between these presentations to more fully understand our business. Reconciliations between GAAP results and non-GAAP results are presented on the following pages. Safe Harbor Statement Certain statements contained in this press release and in today�s conference call are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and it is Invitrogen�s intent that such statements be protected by the safe harbor created thereby. Such statements include, but are not limited to statements regarding Invitrogen�s: 1) financial projections, including revenue and non-GAAP earnings per share; 2) plans regarding our share repurchase program; 3) momentum in 2008; 4) plans to sustain and expand organic growth and increase operating margins; and 5) plans to acquire Applied Biosystems, Inc. Such forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to a) the Company�s ability to identify promising technology and new product development opportunities; b) the Company�s repurchase shares of its common stock at prices that are acceptable to its Board of Directors and management; c) the Company�s ability to identify acquisitions and organic growth opportunities that will position it to serve growing markets; and d) the closing conditions in the Agreement & Plan of Merger to acquire Applied Biosystems, as well as other risks and uncertainties detailed from time to time in Invitrogen�s Securities and Exchange Commission filings. Additional Information and Where to Find It In connection with the proposed transaction, Invitrogen and Applied Biosystems have filed a joint proxy statement/prospectus as part of a registration statement on Form S-4 regarding the proposed transaction with the Securities and Exchange Commission, or SEC. The definitive joint proxy statement/prospectus has been mailed to shareholders of both companies. A supplement to the definitive joint proxy statement/prospectus has been filed with the SEC and mailed to stockholders of both companies. Investors and security holders are urged to read the joint proxy statement/prospectus in its entirety, including the supplement thereto, because it contains important information about Invitrogen and Applied Biosystems and the proposed transaction. Investors and security holders may obtain a free copy of the definitive joint proxy statement/prospectus, including the supplement thereto, and other documents at the SEC�s website at www.sec.gov. The definitive joint proxy statement/prospectus, including the supplement thereto, and other relevant documents may also be obtained free of charge from Invitrogen by directing such requests to: Invitrogen Corporation, Attention: Investor Relations, 5791 Van Allen Way, Carlsbad, CA 92008, and from Applied Biosystems Inc. at: Applied Biosystems Inc., Attention: Investor Relations 850 Lincoln Center Drive, Foster City, CA 94404. Participants in the Solicitation Invitrogen and Applied Biosystems and their respective directors, executive officers and certain other members of their management and employees may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information concerning all of the participants in the solicitation is included in the joint proxy statement/prospectus relating to the proposed merger. This document is available free of charge from several sources: the Securities and Exchange Commission�s Web site at http://www.sec.gov; Invitrogen Investor Relations, telephone: 760-603-7200; Invitrogen�s investor relations website at www.invitrogen.com; Applied Biosystems Investor Relations, telephone (650) 554-2449; or Applied Biosystems investor relations website at www.appliedbiosystems.com. INVITROGEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RECONCILIATION OF NON-GAAP ADJUSTMENTS(1) � � � � � For the three months � For the three months (in thousands, except per share data) ended September 30, 2008 ended September 30, 2007 (unaudited) � � � � GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Revenues $ 361,696 $ - $ 361,696 $ 314,959 $ - $ 314,959 Cost of revenues 125,865 (1,405 ) (2)(3) 124,460 113,875 (1,866 ) (2)(3) 112,009 Purchased intangibles amortization � 17,677 � � (17,677 ) (4) � - � � 26,294 � � (26,294 ) (4) � - � Gross profit � 218,154 � � 19,082 � � 237,236 � � 174,790 � � 28,160 � � 202,950 � Gross margin 60.3 % 65.6 % 55.5 % 64.4 % Operating expenses: Sales and marketing 71,678 (2,249 ) (3) 69,429 63,864 (1,486 ) (3) 62,378 General and administrative 46,623 (3,999 ) (3) 42,624 40,430 (4,842 ) (3) 35,588 Research and development 31,430 (918 ) (3) 30,512 28,571 (1,006 ) (3) 27,565 Purchased in-process research and development 18,901 (18,901 ) (4) - - - - Business consolidation costs � 14,176 � � (14,176 ) (5) � - � � 2,267 � � (2,267 ) (5) � - � Total operating expenses � 182,808 � � (40,243 ) � 142,565 � � 135,132 � � (9,601 ) � 125,531 � Operating income 35,346 59,325 94,671 39,658 37,761 77,419 Operating margin 9.8 % 26.2 % 12.6 % 24.6 % Interest income 6,263 - 6,263 7,713 - 7,713 Interest expense (6,860 ) - (6,860 ) (6,933 ) - (6,933 ) Other income (expense), net � (629 ) � - � � (629 ) � 1,516 � � - � � 1,516 � Total other income (expense), net � (1,226 ) � - � � (1,226 ) � 2,296 � � - � � 2,296 � Income from continuing operations before provision for income taxes 34,120 59,325 93,445 41,954 37,761 79,715 Income tax provision � (8,892 ) � (17,229 ) (6) � (26,121 ) � (11,464 ) � (12,881 ) (6) � (24,345 ) Income from continuing operations $ 25,228 $ 42,096 $ 67,324 $ 30,490 $ 24,880 $ 55,370 Income from discontinued operations, net of tax $ - � $ - � $ - � $ 506 � $ (506 ) $ - � Net income $ 25,228 $ 42,096 $ 67,324 $ 30,996 $ 24,374 $ 55,370 Effective tax rate for continuing operations 26.1 % 28.0 % 27.3 % 30.5 % Add back interest expense for subordinated debt, net of tax � 34 � � - � � 34 � � 33 � � - � � 33 � Numerator for diluted continuing earnings per share $ 25,262 � $ 42,096 � $ 67,358 � $ 30,523 � $ 24,880 � $ 55,403 � � Earnings per common share: Basic earnings per share from continuing operations $ 0.27 � $ 0.73 � $ 0.33 � $ 0.60 � Basic earnings per share from discontinued operations $ - � $ - � $ 0.01 � $ - � � Diluted earnings per share from continuing operations $ 0.26 � $ 0.69 � $ 0.32 � $ 0.57 � Diluted earnings per share from discontinued operations $ - � $ - � $ 0.01 � $ - � � Weighted average shares used in per share calculation: Basic 92,298 92,298 92,630 92,630 Diluted 96,995 96,995 96,396 96,396 � (1) The Company has regularly reported Non-GAAP results which exclude the amortization of purchased intangibles, charges for inventory revaluation on products sold that were previously written-up under purchase accounting rules, in-process research and development and acquisition related deferred compensation to provide a supplemental comparison of results of operations. In addition, expenses related to share-based payments as a result of the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," have been excluded from Non-GAAP results. � (2) Add back noncash charges for purchase accounting inventory revaluations of $0.5 million and $0.5 million for the three months ended September 30, 2008 and 2007, respectively. � (3) Add back stock option expense related to Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," of $8.0 million and $8.7 million for the three months ended September 30, 2008 and 2007, respectively. � (4) Add back amortization of purchased intangibles and write off of purchased in-process research and development. � (5) Add back business consolidation costs. � (6) Non-GAAP tax expense is higher than GAAP tax expense primarily because certain acquisition related costs such as charges for inventory revaluation, amortization of acquired intangibles, in-process research and development and deferred compensation are deducted for GAAP purposes but excluded for Non-GAAP purposes. In addition, 2008 GAAP net income includes expenses related to share-based payments as a result of Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," which are deducted for GAAP purposes but excluded for Non-GAAP purposes. These deductions produce a GAAP only tax benefit which is added back for Non-GAAP presentation. INVITROGEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RECONCILIATION OF NON-GAAP ADJUSTMENTS(1) � � � � � For the nine months � For the nine months (in thousands, except per share data) ended September 30, 2008 ended September 30, 2007 (unaudited) � � � � GAAP Adjustments Non-GAAP GAAP Adjustments Non-GAAP Revenues $ 1,079,705 $ - $ 1,079,705 $ 945,302 $ 945,302 Cost of revenues 365,688 (4,495 ) (2)(3) 361,193 341,799 (4,846 ) (2)(3) 336,953 Purchased intangibles amortization � 51,995 � � (51,995 ) (4) � - � � 81,837 � � (81,837 ) (4) � - � Gross profit � 662,022 � � 56,490 � � 718,512 � � 521,666 � � 86,683 � � 608,349 � Gross margin 61.3 % 66.5 % 55.2 % 64.4 % Operating expenses: Sales and marketing 215,315 (5,885 ) (3) 209,430 183,515 (4,661 ) (3) 178,854 General and administrative 132,247 (12,681 ) (3) 119,566 125,742 (15,163 ) (3) 110,579 Research and development 95,235 (2,803 ) (3) 92,432 84,620 (3,150 ) (3) 81,470 Purchased in-process research and development 18,901 (18,901 ) (4) - - - - Business consolidation costs � 16,090 � � (16,090 ) (5) � - � � 4,789 � � (4,789 ) (5) � - � Total operating expenses � 477,788 � � (56,360 ) � 421,428 � � 398,666 � � (27,763 ) � 370,903 � Operating income 184,234 112,850 297,084 123,000 114,446 237,446 Operating margin 17.1 % 27.5 % 13.0 % 25.1 % Interest income 20,535 - 20,535 19,613 - 19,613 Interest expense (20,621 ) - (20,621 ) (21,061 ) - (21,061 ) Other income � 808 � � - � � 808 � � 1,612 � � - � � 1,612 � Total other income (expense), net � 722 � � - � � 722 � � 164 � � - � � 164 � Income from continuing operations before provision for income taxes 184,956 112,850 297,806 123,164 114,446 237,610 Income tax provision � (48,132 ) � (35,083 ) (6) � (83,215 ) � (33,385 ) � (39,110 ) (6) � (72,495 ) Income from continuing operations $ 136,824 $ 77,767 $ 214,591 $ 89,779 $ 75,336 $ 165,115 Income from discontinued operations, net of tax $ 1,359 � $ (1,359 ) $ - � $ 12,361 � $ (12,361 ) $ - � Net income $ 138,183 $ 76,408 $ 214,591 $ 102,140 $ 62,975 $ 165,115 Effective tax rate for continuing operations 26.0 % 27.9 % 27.1 % 30.5 % Add back interest expense for subordinated debt, net of tax � 101 � � - � � 101 � � 113 � � - � � 113 � Numerator for diluted continuing earnings per share $ 136,925 � $ 77,767 � $ 214,692 � $ 89,892 � $ 75,336 � $ 165,228 � � Earnings per common share: Basic earnings per share from continuing operations $ 1.48 � $ 2.32 � $ 0.96 � $ - � $ 1.77 � Basic earnings per share from discontinued operations $ 0.01 � $ - � $ 0.13 � $ - � $ - � � Diluted earnings per share from continuing operations $ 1.41 � $ 2.21 � $ 0.93 � $ - � $ 1.72 � Diluted earnings per share from discontinued operations $ 0.01 � $ - � $ 0.13 � $ - � $ - � � Weighted average shares used in per share calculation: Basic 92,357 92,357 93,420 - 93,420 Diluted 97,329 97,329 96,152 - 96,152 � (1) The Company has regularly reported Non-GAAP results which exclude the amortization of purchased intangibles, charges for inventory revaluation on products sold that were previously written-up under purchase accounting rules, in-process research and development and acquisition related deferred compensation to provide a supplemental comparison of results of operations. In addition, expenses related to share-based payments as a result of the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," have been excluded from Non-GAAP results. � (2) Add back noncash charges for purchase accounting inventory revaluations of $1.4 million and $0.5 for the nine months ended September 30, 2008 and 2007, respectively. � (3) Add back stock option expense related to Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," of $24.5 million and $27.4 million for the nine months ended September 30, 2008 and 2007, respectively. � (4) Add back amortization of purchased intangibles and write off of purchased in-process research and development. � (5) Add back business consolidation costs. � (6) Non-GAAP tax expense is higher than GAAP tax expense primarily because certain acquisition related costs such as charges for inventory revaluation, amortization of acquired intangibles, in-process research and development and deferred compensation are deducted for GAAP purposes but excluded for Non-GAAP purposes. In addition, 2008 GAAP net income includes expenses related to share-based payments as a result of Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," which are deducted for GAAP purposes but excluded for Non-GAAP purposes. These deductions produce a GAAP only tax benefit which is added back for Non-GAAP presentation. INVITROGEN CORPORATION BUSINESS SEGMENT HIGHLIGHTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 � � � � � � Bio- � Cell � � (in thousands)(unaudited) Discovery Systems Unallocated(1) Total Segment results for the three months ended September 30, 2008 Revenues $ 249,391 � $ 112,305 � $ - � $ 361,696 � Gross profit � 178,235 � � 59,001 � � (19,082 ) � 218,154 � Gross margin 71.5 % 52.5 % 60.3 % � Selling and administrative 80,177 31,876 6,248 118,301 Research and development 25,905 4,607 918 31,430 Purchased in-process research and development - - 18,901 18,901 Business consolidation costs � - � � - � � 14,176 � � 14,176 � � Operating income (loss) $ 72,153 � $ 22,518 � $ (59,325 ) $ 35,346 � Operating margin 28.9 % 20.1 % 9.8 % � � Segment results for the three months ended September 30, 2007 Revenues $ 220,366 � $ 94,593 � $ - � $ 314,959 � Gross profit � 152,383 � � 50,567 � � (28,160 ) � 174,790 � Gross margin 69.1 % 53.5 % 55.5 % � Selling and administrative 72,260 25,706 6,328 104,294 Research and development 24,141 3,424 1,006 28,571 Purchased in-process research and development - - - - Business consolidation costs � - � � - � � 2,267 � � 2,267 � � Operating income (loss) $ 55,982 � $ 21,437 � $ (37,761 ) $ 39,658 � Operating margin 25.4 % 22.7 % 12.6 % � (1) � Unallocated items for the three months ended September 30, 2008 and 2007 include noncash charges for purchase accounting inventory revaluations of $0.5 million and $0.5 million, amortization of purchased intangibles of $17.7 million and $26.3 million, business consolidation costs of $14.2 million and $2.3 million, write off of purchased in-process research and development of $18.9 million and zero, and expenses related to share-based payments as a result of the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," of $8.0 million and $8.7 million, respectively. These items are not allocated by management for purposes of analyzing the operations since they are principally noncash or other costs resulting primarily from business restructuring or purchase accounting that are separate from ongoing operations. INVITROGEN CORPORATION BUSINESS SEGMENT HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007 � � � � � � Bio- � Cell � � (in thousands)(unaudited) Discovery Systems Unallocated(1) Total Segment results for the nine months ended September 30, 2008 Revenues $ 749,743 � $ 329,962 � $ - � $ 1,079,705 � Gross profit � 541,817 � � 176,695 � � (56,490 ) � 662,022 � Gross margin 72.3 % 53.6 % 61.3 % � Selling and administrative 237,142 91,854 18,566 347,562 Research and development 79,887 12,545 2,803 95,235 Purchased in-process research and development - - 18,901 18,901 Business consolidation costs � - � � - � � 16,090 � � 16,090 � � Operating income (loss) $ 224,788 � $ 72,296 � $ (112,850 ) $ 184,234 � Operating margin 30.0 % 21.9 % 17.1 % � � Segment results for the nine months ended September 30, 2007 Revenues $ 663,193 � $ 282,109 � $ - � $ 945,302 � Gross profit � 465,866 � � 142,483 � � (86,683 ) � 521,666 � Gross margin 70.2 % 50.5 % 55.2 % � Selling and administrative 215,255 74,178 19,824 309,257 Research and development 71,361 10,109 3,150 84,620 Purchased in-process research and development - - - - Business consolidation costs � - � � - � � 4,789 � � 4,789 � � Operating income (loss) $ 179,250 � $ 58,196 � $ (114,446 ) $ 123,000 � Operating margin 27.0 % 20.6 % 13.0 % � (1) � Unallocated items for the nine months ended September 30, 2008 and 2007 include noncash charges for purchase accounting inventory revaluations of $1.4 million and $0.5 million, amortization of purchased intangibles of $52.0 million and $81.8 million, business consolidation costs of $16.1 million and $4.8 million, write off of purchased in-process research and development of $18.9 million and zero, and expenses related to share-based payments as a result of the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), "Share-Based Payments," of $24.5 million and $27.4 million, respectively. These items are not allocated by management for purposes of analyzing the operations since they are principally noncash or other costs resulting primarily from business restructuring or purchase accounting that are separate from ongoing operations. INVITROGEN CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS � � � � � For the nine months ended September 30, (in thousands)(unaudited) � 2008 � � 2007 � Net income $ 138,183 $ 102,140 Add back amortization and share-based compensation 85,025 117,363 Add back depreciation 30,387 27,745 Balance sheet changes (33,350 ) (28,003 ) Other noncash adjustments � 14,296 � � 5,763 � Net cash provided by operating activities 234,541 225,008 Capital expenditures � (52,846 ) � (35,858 ) Free cash flow 181,695 189,150 Net cash (used in) provided by investing activities (56,438 ) 150,961 Net cash used in financing activities (43,057 ) (118,977 ) Effect of exchange rate changes on cash � (15,265 ) � 6,902 � Net increase in cash and cash equivalents $ 66,935 � $ 228,036 � INVITROGEN CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS � � � � � September 30 December 31, (in thousands) 2008 2007 ASSETS (unaudited) Current assets: Cash and short-term investments $ 675,846 $ 671,293 Trade accounts receivable, net of allowance for doubtful accounts 197,999 192,137 Inventories 206,581 172,692 Deferred income taxes 30,285 20,699 Prepaid expenses and other current assets � 37,371 � 33,663 Total current assets 1,148,082 1,090,484 � Property and equipment, net 344,094 319,653 Goodwill 1,543,167 1,528,779 Intangible assets, net 262,071 286,521 Long-term investments 36,587 753 Other assets � 62,072 � 103,557 Total assets $ 3,396,073 $ 3,329,747 � LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 2 $ 124 Accounts payable, accrued expenses and other current liabilities 243,704 225,218 Income taxes � - � 9,071 Total current liabilities 243,706 234,413 � Liabilities of discontinued operations - 2,506 � Long-term debt 1,150,962 1,150,700 Pension liabilities 21,620 28,428 Income taxes 117,446 129,466 Other long-term liabilities 20,772 18,787 Stockholders' equity � 1,841,567 � 1,765,447 Total liabilities and stockholders' equity $ 3,396,073 $ 3,329,747

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

IVGN Invitrogen (MM)