Thermo Reports 22% Revenue Rise in Q1 2014

First Quarter Highlights

• Completed the acquisition of Life Technologies to enhance our offering for customers in life sciences and applied markets worldwide and significantly strengthen our strategic position.
• Grew adjusted earnings per share (EPS) by 12% to $1.53.
• Increased revenue by 22% to $3.90 billion.
• Expanded adjusted operating margin by 200 basis points to 21.3%.
• Launched innovative new Thermo Scientific and Life Technologies products, including a new version of our Chromeleon chromatography data system, the Lab Execution informatics platform, Quantifiler Trio and HP kits for forensic analysis and Ion Chef system for automated preparation of DNA samples.

Adjusted EPS, adjusted operating income, adjusted operating margin and free cash flow are non-GAAP measures that exclude certain items detailed later in this press release under the heading “Use of Non-GAAP Financial Measures.”

“We had a number of key accomplishments during the quarter that demonstrate the intensity of our teams and position us for another successful year,” said Marc N. Casper, president and chief executive officer. “We closed our acquisition of Life Technologies, began to integrate the business and completed the related divestitures – all while staying focused on our customers and executing well to deliver solid first quarter results.

“I’m pleased to report that the integration is on track, and we are confident that we will deliver on our previously outlined synergy targets. Our enhanced technology offering was already apparent when we showcased innovative new Thermo Scientific and Life Technologies products side by side at industry conferences. In Asia-Pacific and emerging markets, our combined scale is a key advantage in providing customers with solutions to achieve their goals. Our unique customer value proposition is now even stronger, and we are committed to fully leveraging our new capabilities to drive growth and create shareholder value.”

First Quarter 2014

For the first quarter of 2014, adjusted EPS grew 12% to $1.53, versus $1.37 in the first quarter of 2013. Revenue for the quarter grew 22% to $3.90 billion in 2014, versus $3.19 billion in 2013. Organic revenue grew 2%, with currency translation having a negligible effect and acquisitions, net of divestitures, increasing revenue by 20%. Adjusted operating income for the first quarter of 2014 increased 35% compared with the year-ago period, and adjusted operating margin expanded to 21.3%, compared with 19.3% in the first quarter of 2013.

GAAP diluted EPS for the first quarter of 2014 was $1.36, versus $0.93 in the same quarter last year. GAAP operating income for the first quarter of 2014 was $875 million, compared with $387 million in 2013. The increases in GAAP EPS and operating income were largely due to gains as a result of the divestitures. GAAP operating margin increased to 22.4%, compared with 12.1% in the first quarter of 2013.