Bio-Rad Reports Third-Quarter Financial Results

HERCULES, Calif., Nov. 3  /PRNewswire-FirstCall/ -- Bio-Rad Laboratories, Inc. (AMEX: BIO; BIOb), a multinational manufacturer and distributor of life science research products and clinical diagnostics, announced financial results today for the third quarter ended September 30, 2005.  Third-quarter net sales from continuing operations were $283.2 million, up 9.4 percent compared to the $258.8 million reported for the third quarter of 2004.  On a currency-neutral basis, sales were up by 8.4 percent for the period.  This growth was driven by strong sales in the areas of protein expression analysis, process chromatography, diabetes monitoring, blood virus screening, and quality control products.  Third-quarter income from continuing operations was $16.2 million, or $0.62 per share, up 157.9 percent from the same period last year.  Third-quarter 2004 earnings were affected, however, by $13.7 million, or $9.5 million net of taxes, of one-time purchased in-process R&D costs. Excluding the one-time charges from the comparison, year-over-year earnings increased about 3 percent.

Year-to-date revenues from continuing operations grew by 11.7 percent to $873.7 million as compared to the same period last year.  Normalizing for the impact of currency effects, growth was 9.0 percent.  Income from continuing operations increased by 30.4 percent to $64.1 million, or $2.47 per share, compared to $49.2 million, or $1.91 per share, for the first nine months of 2004.  Year-to-date gross margin was 55.4 percent compared to 56.5 percent in the same period last year.

Third-Quarter Highlights

-- Overall net sales for the quarter grew by 9.4 percent to $283.2 million compared to $258.8 million reported in the third quarter of 2004.  On a currency-neutral basis, revenues were up 8.4 percent versus third-quarter 2004 results.

-- Basic earnings from continuing operations were $0.62 per share, or $0.61 per share on a diluted basis, compared to both basic and diluted earnings per share of $0.24 in the same period of 2004.

-- Life Science segment net sales for the quarter were $132.1 million, up 9.5 percent over the same period last year, which includes a 0.8 percent increase due to currency effects.  Sales growth in the third quarter was the result of a combination of factors including increased sales of process chromatography products as well as of products such as the Bio-Plex(R) platform (and associated protein expression analysis reagents) and the Experion(TM) automated electrophoresis system, both of which are gaining market acceptance.  The Life Science segment also introduced the BioOdyssey(TM) Calligrapher(TM) miniarrayer, which brings microarray chip writing performance to individual researchers.  Segment growth was somewhat tempered, however, by erosion in the average selling price of BSE tests and competition in the real-time PCR instrumentation business.

-- Clinical Diagnostics segment net sales for the quarter were $148.3 million, an increase of 8.7 percent compared to the $136.4 million reported in the third quarter of 2004.  Normalizing for the impact of currency effects, sales growth for the segment was 7.5 percent.  Strong sales of blood virus screening products in the U.S. transfusion sector, increased blood typing sales in Europe, and expanding worldwide demand for the Company's quality control products were the primary contributors to increased quarterly net sales.  Other gains in the Clinical Diagnostics segment include increased sales of newborn screening products in Northern Europe and strong demand for the Company's diabetes monitoring, and HIV and Hepatitis testing products in the U.S. and Asia Pacific.

-- On August 30th, the Federal District Court in Connecticut granted a permanent injunction in our ongoing litigation with Applera and Roche.  Among other things, the injunction prevents us from selling the MJ Research line of thermal cycling products that we acquired in August 2004 in the United States. However, the Company believes that a settlement agreement with Applera and Roche had been reached and the Company has made motions to the court asking that the settlement agreement be enforced and requesting a stay of the injunction during an appeal.  Although the timing and outcome of these motions are uncertain at this time, if the injunction continues in place throughout the fourth quarter, our Life Science business could be negatively impacted with sales being reduced by as much as $10 to 15 million and pre-tax operating profit reduced by $8 to 10 million versus prior expectations.

-- Also during the fourth quarter, we anticipate recording a gain on the sale of our shares in Instrumentation Laboratory S.p.A. and BioSource International of approximately $10 to 11 million.

"Overall, we are pleased with the Company's performance during the third quarter, in spite of ongoing litigation we acquired as part of our acquisition of MJ Research last fall.  We continue to be optimistic about resolving these matters in due course," said President and Chief Executive Officer Norman Schwartz.

Management will discuss these results in a conference call scheduled for 2:00 p.m. PT (5:00 p.m. ET) today, November 3, 2005. Interested parties can access the call by dialing 800-706-7748 (in the U.S.), or 617-614-3473 (international), access number 85706260. The live web cast can be accessed at http://www.bio-rad.com/. A replay of the call will be available at 888-286-8010 (in the U.S.), or 617-801-6888 (international), access number 28916822 for seven days following the call and the web cast can be accessed at http://www.bio-rad.com/ for 30 days.

Bio-Rad Laboratories, Inc. (http://www.bio-rad.com/) is a multinational manufacturer and distributor of life science research products and clinical diagnostics. It is based in Hercules, California, and serves thousands of research and industry customers worldwide through a network of more than 30 wholly owned subsidiary offices.

Various statements made within this press release may constitute "forward-looking statements" for purposes of the Securities and Exchange Commission's "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 and Rule 3b-6 under the Securities Exchange Act of 1934. The forward-looking statements contained herein involve risks and uncertainties that could cause results to differ materially from the Company's expectations.

                        Bio-Rad Laboratories, Inc.
               Condensed Consolidated Statements of Income

                  (in thousands, except per share data)
                               (UNAUDITED)

                                    Three Months Ended    Nine Months Ended
                                        September 30,       September 30,
                                       2005      2004      2005      2004

  Net sales                          $283,225  $258,849  $873,698  $782,144
  Cost of goods sold                  126,413   116,036   389,837   340,406
  Gross profit                        156,812   142,813   483,861   441,738

  Selling, general and
   administrative expense             102,738    90,183   306,458   267,439
  Product research and development
   expense                             28,673    26,581    83,995    76,459
  Purchased in-process research and
   development expense                     --    13,720        --    14,620
  Interest expense                      8,210     4,995    24,371    14,964
  Foreign exchange (gains) losses,
   net                                    (97)      873    (1,296)    1,620
  Other (income) expense, net          (3,506)   (2,656)  (14,033)   (3,306)
  Income from continuing operations
   before taxes                        20,794     9,117    84,366    69,942
  Provision for income taxes            4,575     2,827    20,239    20,761
  Income from continuing operations    16,219     6,290    64,127    49,181
  Discontinued operations
      Discontinued operations (net
       of tax)                             --        --        --    (1,487)
      Gain on divestiture (net of
       tax)                                --        --     3,974     3,437
      Total discontinued operations        --        --     3,974     1,950
  Net income                          $16,219    $6,290   $68,101   $51,131

  Basic earnings per share
      Continuing operations             $0.62     $0.24     $2.47     $1.91
      Discontinued operations              --        --      0.15      0.08
      Net income                        $0.62     $0.24     $2.62     $1.99

      Weighted average common shares   26,115    25,753    26,015    25,692

  Diluted earnings per share
      Continuing operations             $0.61     $0.24     $2.41     $1.86
      Discontinued operations              --        --      0.15      0.07
      Net income                        $0.61     $0.24     $2.56     $1.93

      Weighted average common shares   26,695    26,471    26,620    26,472


                        Bio-Rad Laboratories, Inc.
                  Condensed Consolidated Balance Sheets

                              (In thousands)
                               (UNAUDITED)


                                              September 30,     December 31,
                                                   2005              2004
  Current Assets:
       Cash and cash equivalents                 $243,980          $195,734
       Restricted cash                             35,828                --
       Short-term investments                     114,522           165,899
       Accounts receivable, net                   244,466           261,243
       Inventories, net                           223,146           205,512
       Prepaid expenses, taxes and other
        current assets                             90,701            80,072
            Total current assets                  952,643           908,460

  Net property, plant and equipment               182,045           202,324
  Goodwill                                        113,276           113,276
  Purchased intangibles, net                       50,709            58,638
  Other assets                                    127,318           109,304
            Total assets                       $1,425,991        $1,392,002



  Current liabilities:
       Notes payable and current
        maturities of long-term debt               $8,985            $9,457
       Accounts payable                            68,076            71,194
       Accrued payroll and employee
        benefits                                   70,924            79,061
       Sales, income and other taxes
        payable                                    13,032            15,835
       Other current liabilities                  138,216           139,828
            Total current liabilities             299,233           315,375

  Long-term debt, net of current
   maturities                                     425,812           425,979
  Deferred tax liabilities                         31,287            24,772
  Other long-term liabilities                      20,702            28,988
  Stockholders' equity                            648,957           596,888
            Total liabilities and
             stockholders' equity              $1,425,991        $1,392,002

     Certain items have been reclassified to conform to the current year
                                presentation.


                        Bio-Rad Laboratories, Inc.
              Condensed Consolidated Statement of Cash Flows

                              (In thousands)
                               (UNAUDITED)

                                                       Nine Months
                                                    Ended September 30,

                                                  2005               2004

  Cash flows from operating
   activities:
      Cash received from customers              $865,235           $796,395
      Cash paid to suppliers and
       employees                                (762,788)          (677,032)
      Interest paid                              (24,489)           (18,922)
      Income tax payments                        (30,085)           (32,074)
      Miscellaneous receipts                      12,345              5,715
      Discontinued operations                     (1,327)            (2,019)
      Net cash provided by operating
       activities                                 58,891             72,063

  Cash flows from investing
   activities:
      Capital expenditures, net                  (26,297)           (41,627)
      Other investing activities                  12,002            (23,595)
      Net cash used in investing
       activities                                (14,295)           (65,222)

  Cash flows from financing
   activities:
      Payments on long-term debt                    (273)            (1,675)
      Other financing activities                   4,776             (4,830)
      Net cash provided by (used in)
       financing activities                        4,503             (6,505)

  Effect of exchange rate changes on cash           (853)               783

  Net increase in cash and cash
   equivalents                                    48,246              1,119
  Cash and cash equivalents at
   beginning of period                           195,734             65,395
  Cash and cash equivalents at end of
   period                                       $243,980            $66,514


  Reconciliation of income from
   continuing operations to net cash
   provided by operating activities:

  Income from continuing operations              $64,127            $49,181
  Adjustments to reconcile income from
   continuing operations to net


cash provided by operating

   activities (net of effects of
   acquisitions):
      Depreciation and amortization               44,581             36,731
      Changes in working capital                 (37,674)           (21,142)
      Other                                      (12,143)             7,293
  Net cash provided by operating
   activities                                    $58,891            $72,063

     Certain items have been reclassified to conform to the current year
                                presentation.


DATASOURCE: Bio-Rad Laboratories, Inc.



CONTACT:  Christine Tsingos, Chief Financial Officer, or Ron Hutton,

Treasurer, both of Bio-Rad Laboratories, Inc., [phone], or





Web site:  http://www.bio-rad.com/ 

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