Satellite Banner
Scientific Community
Become a Member | Sign in
Home>News>This Article

Life Technologies Announces Fourth Quarter and Fiscal 2012 Results

Published: Tuesday, February 12, 2013
Last Updated: Tuesday, February 12, 2013
Bookmark and Share
Fourth quarter revenue increased 3% to $999 million, or 4.5% excluding currency.

Life Technologies Corporation has announced results for its fourth quarter for the year ended Dec. 31, 2012. Non-GAAP revenue for the fourth quarter was $999 million, an increase of 3 percent over the $970 million reported for the fourth quarter of 2011.

Excluding the impact of currency, revenue growth for the quarter was 4.5 percent compared to the same period of the prior year. Full year 2012 revenue was $3.8 billion, an increase of 2 percent over 2011. Excluding currency, revenue growth was also about 2.2 percent over the prior year.

"We started the year with a promise to our shareholders to grow our underlying business, invest in growth markets and regions, deliver on a balanced capital deployment strategy and introduce innovative new products to serve our customers even better. I am extremely pleased that our team remained focused and delivered against this promise, growing revenue and earnings for the thirteenth year in a row," said Gregory T. Lucier, chairman and chief executive officer of Life Technologies.

"We finished the year strong with fourth quarter revenue growth ahead of our expectations at 4.5 percent driven by strength in our Ion Torrent business, which recorded its highest revenue quarter ever. We also achieved a solid return to growth in our Research Consumables business and continued strong performance in our Bioproduction business. We expect the strength we saw across all regions and end markets as we exited 2012, including continued double digit growth in emerging markets, to provide momentum in 2013."

"With $662 million in free cash flow, we were able to return a significant amount of capital to shareholders. We ended the year having repurchased $635 million, or 13.8 million shares in total, well above our 50 percent target. Additionally, we have already repurchased $105 million, or 2 million shares, year-to-date in 2013."

"Looking ahead to 2013, we expect another significant increase in our Ion Torrent business sales for the third consecutive year and expansion in our applied and emerging markets to drive revenue growth of 3 to 5 percent over 2012 results of $3.8 billion. If sequestration is implemented, we estimate it would reduce our revenue by approximately 1 percent and we would expect to be at the low end of our guidance range, at 3 percent growth for 2013. We are guiding to non-GAAP EPS in a range of $4.30 to $4.45, which would result in 8 to 12 percent growth over 2012 results."

Life Technologies reported results compared to the quarter and fiscal year ended Dec. 31, 2011. Results are non-GAAP unless indicated otherwise. A full reconciliation of the non-GAAP measures to GAAP can be found in the tables of today's press release.

Analysis of Fourth Quarter and Fiscal 2012 Results

• Fourth quarter revenue increased 3 percent over the prior year, or 4.5 percent excluding the impact of currency. Full year 2012 revenue increased 2 percent to $3.8 billion.

Revenue growth for the quarter and the full year were driven by strong sales from the Ion Torrent business and growth in the company's Research Consumables and Bioproduction businesses, partially offset by expected declines in SOLiD® sales and qPCR royalty revenue.

• Gross margin in the fourth quarter was 64.6 percent, a 20 basis point increase compared to the same period of the prior year primarily driven by manufacturing productivity, partially offset by a higher mix of instrument sales and unfavorable currency rates.

Full year gross margin was 65.6 percent, an increase of 40 basis points, primarily due to improved product mix and higher realized price, offset by the decrease in qPCR royalties and unfavorable currency rates.

• Operating margin was 29.9 percent in the fourth quarter, approximately 70 basis points lower than the same period of the prior year. Operating margin was primarily impacted by unfavorable currency rates and expenses related to our acquisitions in molecular diagnostics.

Full year operating margin increased 20 basis points to 29.2 percent. The increase was driven primarily by an increase in gross margins and improvement in currency, partially offset by higher expenses related to our acquisitions in molecular diagnostics.

• The tax rate was 27.2 percent for the fourth quarter and 27.6 percent for the full year.

• Fourth quarter EPS increased 6 percent to $1.11. Full year EPS increased 7 percent to $3.98. Fourth quarter and the full year were negatively impacted by $(0.03) due to the timing of the 2012 federal R&D tax credit benefit being moved from the fourth quarter of 2012 to 2013. The company's fourth quarter and full year 2012 guidance had assumed the reinstatement and benefit of the federal R&D tax credit by the end of 2012.

• Diluted weighted shares outstanding were 175.8 million in the fourth quarter, a decrease of 8.8 million shares over the prior year. The decrease was a result of the continuation of the company's share repurchase program, partially offset by shares issued for employee stock plans. The company repurchased $100 million or 2.0 million shares in the fourth quarter.

• Cash flow from operating activities for the fourth quarter was $221 million. Fourth quarter capital expenditures were $48 million, resulting in free cash flow of $173 million. The company ended the quarter with $276 million in cash and short-term investments.

Business Group Highlights
• Research Consumables revenue was $409 million in the fourth quarter, an increase of 2 percent compared to the prior year. Excluding the impact from currency, revenue for the business group grew 4 percent. Full year revenue increased 1 percent to $1.6 billion, or 2 percent excluding the impact from currency. Growth for the quarter and full year was mainly driven by strong performance in our cell culture, sample prep and benchtop products.
• Genetic Analysis revenue was $401 million in the fourth quarter, an increase of 2 percent over the same period last year. Excluding the impact from currency, revenue increased 4 percent. Full year revenue was flat at approximately $1.5 billion, or up 1 percent excluding the impact from currency. Growth for the quarter and the full year was primarily driven by a substantial increase in our Ion Torrent business, including sales of the Ion PGM™ instruments and Ion Proton™ System, partially offset by an expected decline in SOLiD instrument sales and in qPCR royalty revenue.
• Applied Sciences revenue was $190 million in the fourth quarter, an increase of 8 percent over the same period last year. Excluding the impact from currency, revenue increased 10 percent. Full year revenue increased 7 percent to $719 million, or 8 percent excluding the impact from currency. Growth for the quarter was primarily driven by increased sales in Bioproduction and Forensics products. Growth for the full year was primarily driven by increased sales in Bioproduction.
• Regional revenue growth rates excluding currency for the fourth quarter compared to the same quarter of the prior year were as follows: the Americas were flat, Europe grew 5 percent, Asia Pacific grew 18 percent and Japan grew 6 percent. Full year growth rates excluding currency were as follows: the Americas declined 1 percent, Europe grew 2 percent, Asia Pacific grew 13 percent and Japan grew 3 percent.

Fiscal Year 2013 Outlook
Subject to the risk factors detailed in the Safe Harbor Statement section of this release, the company provided its expectations for fiscal year 2013 financial performance.

The company expects revenue growth, excluding currency, of 3 to 5 percent over 2012 revenues of $3.8 billion. If sequestration is implemented, it would reduce revenue by approximately 1 percent and the company would expect be at the low end of the guidance range, at 3 percent growth for 2013.

The company expects non-GAAP EPS to be in a range of $4.30 to $4.45. At December month end rates, currency negatively impacts revenue by $(2) million and non-GAAP EPS by about $(0.01). The company will provide further detail on its business outlook during the webcast.

Further Information

Join For Free

Access to this exclusive content is for Technology Networks Premium members only.

Join Technology Networks Premium for free access to:

  • Exclusive articles
  • Presentations from international conferences
  • Over 4,000+ scientific posters on ePosters
  • More than 5,300+ scientific videos on LabTube
  • 35 community eNewsletters

Sign In

Forgotten your details? Click Here
If you are not a member you can join here

*Please note: By logging into you agree to accept the use of cookies. To find out more about the cookies we use and how to delete them, see our privacy policy.

Related Content

FBI Approves Life Technologies' Forensics Kit
Ability to upload forensic samples to National DNA Index System using GlobalFiler DNA chemistry enables faster, more powerful data comparisons to solve crimes in the U.S. and globally.
Tuesday, June 24, 2014
Life Tech's Food Pathogen Detection Methods Approved by Australian Government
MicroSEQ Real-Time PCR workflows approved as method for testing Australian export meat and meat products.
Tuesday, December 17, 2013
Life Technologies Awards Digital PCR Innovation Grants to Five Research Labs
The five Innovation Grant recipients in the Digital PCR Applications Grant Program was announced during the ASHG conference in Boston.
Thursday, October 24, 2013
Thermo Acquisition Approved by Life Technologies Stockholders
Company announced that its stockholders voted to adopt the previously announced merger agreement.
Thursday, August 22, 2013
Life Technologies Announces Second Quarter 2013 Results
Revenue increased 1% excluding impact of currency.
Thursday, August 01, 2013
Life Technologies Signs Five-Year Agreement with the FDA
The agreement aims to accelerate and advance food safety testing of E. coli and Salmonella, two foodborne contaminants commonly associated with outbreaks and/or recalls.
Tuesday, July 30, 2013
Life Technologies Expands CEERAM Food Safety Range to Global Market
Award-winning products broaden industry-leading portfolio of food safety solutions.
Friday, July 26, 2013
Life Technologies Expands Line of qPCR Instruments
Company simultaneously introduces two flexible systems in the QuantStudio™ product line designed to meet varying throughput and budget needs of customers.
Thursday, July 25, 2013
Life Technologies to Collaborate with Merck Serono
Long-term collaboration is aimed at developing, obtaining regulatory approval and commercializing companion diagnostics for selected Merck Serono drug development programs.
Wednesday, July 17, 2013
Life Technologies Screening Technology Receives Emergency Use Authorization
Life Technologies supports global effort to help accelerate emergency screening of Novel Middle East Respiratory Syndrome Coronavirus (MERS-CoV).
Wednesday, June 26, 2013
Life Technologies Acquires Life Science Korea
The acquisition strengthens Life Tech's go-direct strategy in South Korea.
Friday, June 14, 2013
Life Technologies Begins Shipping QuantStudio™ 3D Digital PCR System
Disruptive benchtop system makes digital PCR attainable to any lab.
Tuesday, June 11, 2013
Life Technologies Supports Emergency Screening of Avian Influenza (H7N9) Virus
Company's instruments FDA-cleared under Emergency Use Authorization declaration.
Monday, April 29, 2013
Life Technologies to Invest $18 Million in Facility Expansion and Current GMP Compliance Plan
Project aims to broaden product offerings to growing diagnostics and pharmaceutical customer base.
Tuesday, April 02, 2013
Life Technologies Signs Stem Cell Agreement with Harvard University
Research collaboration aimed at yielding standardized method for evaluating iPS cell quality; deepens Life's investment to its expanding stem cell product portfolio.
Tuesday, March 05, 2013
Scientific News
Top 10 Life Science Innovations of 2016
2016 has seen the release of some truly innovative products. To help you digest these developments, The Scientist have listed their top picks for the year.
Using Cancer Cells' Mass to Predict Treatment Response
A device has been developed that can detect changes in cell mass at a minute scale.
NVIDIA Awards $400k to Trailblazers in Cancer Research
NVIDIA Foundation furthers research that could lead to new and more targeted treatments with investments.
Malaria Parasite Evades Rapid Test Detection in Children
A study at the University of North Carolina found that gene deletion poses a threat to Malaria eradication efforts.
Working With Advanced Nanoimagers
Oxford Nanoimaging report on the work of early-adopters for their Nanoimager technology at the MRC Centre for Molecular Bacteriology and Infection.
History of Cells Told Through MEMOIR
MEMOIR technique developed by CalTech researchers enables the life history of cells to be read.
Nanoscale ‘Muscles’ Powered by DNA
Scientists have developed nanoscale "muscles" to integrate with custom DNA, that can force the material to bend, curl and flip.
Dissecting Bacterial Infections at the Single-Cell Level
Researchers have used single-cell analysis technology to provide new insight into the Salmonella infection process.
Peer Review is in Crisis, But Should be Fixed, Not Abolished
After the time to get the science done, peer review has become the slowest step in the process of sharing studies, and some scientists have had enough.
Cancer Stem Cells Fuel Tumor Growth
Mass. General, Broad Institute team finds strong evidence that cancer stem cells are important drivers of tumors in patients.
Skyscraper Banner

SELECTBIO Market Reports
Go to LabTube
Go to eposters
Access to the latest scientific news
Exclusive articles
Upload and share your posters on ePosters
Latest presentations and webinars
View a library of 1,800+ scientific and medical posters
4,000+ scientific and medical posters
A library of 2,500+ scientific videos on LabTube
5,300+ scientific videos