CINCINNATI -- (Business Wire)
Meridian Bioscience, Inc., Cincinnati, Ohio (NASDAQ: VIVO) today
provided the financial community with guidance regarding the Company’s
fiscal 2015 sales and earnings estimates. Based on the Company’s
business planning and budgeting activities for the fiscal year ending
September 30, 2015, management expects net revenues to be in the range
of $193 to $200 million, or 2% to 5% growth, and per share diluted
earnings to be between $0.85 and $0.91. The per share estimates assume
an increase in average diluted shares outstanding from approximately
42.2 million at fiscal 2014 year end to 42.4 million at fiscal 2015 year
end. The revenues and earnings guidance provided in this press release
is from expected internal growth and does not include the impact of any
acquisitions the Company might complete during fiscal 2015.
Management reaffirms fiscal 2014 guidance of per share diluted earnings
of between $0.85 - $0.90 on net sales of $190 million to $195 million,
with current revenue and earnings expectations being near the low end of
the range.
John A. Kraeutler, Chief Executive Officer, stated, “Our revenue
guidance range of $193 to $200 million for fiscal 2015 is based upon
expectations that the markets we target will continue to be highly
competitive as established and new diagnostics competitors attempt to
advance their new molecular platforms. For our Life Science units,
double-digit growth should continue for our Bioline molecular components
business, somewhat offset by lower growth rates in our core immunoassay
components business.
“With regard to Diagnostics, we expect that continued growth from our illumigene®molecular platform will be driven by illumigene Group
A Strep, illumigene Group B Strep and our recently-cleared illumigene
Pertussis test. Also, revenue increases are expected in our H. pylori
product portfolio, with somewhat more conservative expectations for our
foodborne category. A number of new product launches are anticipated,
including illumigene Chlamydia/Gonorrhea and illumigene
Herpes Simplex Virus I & II; however, we have not included any revenue
contributions from these products in our guidance estimates. Research
and development has begun on two new assays in the illumigene
platform, a test for Malaria and a test for Campylobacter. Also,
recently we announced a license agreement with the University of
Tennessee Research Foundation for an electrokinetic sensor technology
that has great potential as a highly sensitive, more rapid and simpler
point-of-care platform. Global expansion and new industrial customer
successes will continue to be the primary factors in the growth of our
Life Science business. In addition, we have been encouraged by
opportunities coming from two new market segments, agribio and
epigenetics researchers, that should continue to propel this business
unit forward. Our expansion into China and other Asian markets is going
well and contributions from these markets are meaningful.
“Finally, investment continues in research and development to maintain a
consistent flow of innovative products. At the same time, we are
expanding our global reach with a local presence in China and building
strength in our sales and marketing teams. As our markets become more
competitive, lowering costs of manufacturing becomes more critical.
Active investments are occurring in each of our operating locations to
reduce costs and increase efficiency.”
William J. Motto, Executive Chairman, commented, “The outlook for fiscal
2015 is for modest revenue and profit growth. In the upcoming year we
intend to accelerate our search for new growth opportunities. Of course,
we will continue to drive efficient operations, introduce new products,
and maintain our strong balance sheet. Management will be recommending
to the Board of Directors that the current indicated annual dividend
rate of $0.80 be maintained.”
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a safe
harbor from civil litigation for forward-looking statements accompanied
by meaningful cautionary statements. Except for historical information,
this report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, which may be identified by words
such as “estimates”, “anticipates”, “projects”, “plans”, “seeks”, “may”,
“will”, “expects”, “intends”, “believes”, “should” and similar
expressions or the negative versions thereof and which also may be
identified by their context. Such statements, whether expressed or
implied, are based upon current expectations of the Company and speak
only as of the date made. The Company assumes no obligation to publicly
update or revise any forward-looking statements even if experience or
future changes make it clear that any projected results expressed or
implied therein will not be realized. These statements are subject to
various risks, uncertainties and other factors that could cause actual
results to differ materially, including, without limitation, the
following: Meridian’s continued growth depends, in part, on its ability
to introduce into the marketplace enhancements of existing products or
new products that incorporate technological advances, meet customer
requirements and respond to products developed by Meridian’s
competition, and its ability to effectively sell such products. While
Meridian has introduced a number of internally developed products, there
can be no assurance that it will be successful in the future in
introducing such products on a timely basis. Meridian relies on
proprietary, patented and licensed technologies, and the Company’s
ability to protect its intellectual property rights, as well as the
potential for intellectual property litigation, would impact its
results. Ongoing consolidations of reference laboratories and formation
of multi-hospital alliances may cause adverse changes to pricing and
distribution. Recessionary pressures on the economy and the markets in
which our customers operate, as well as adverse trends in buying
patterns from customers can change expected results. Costs and
difficulties in complying with laws and regulations, including those
administered by the United States Food and Drug Administration, can
result in unanticipated expenses and delays and interruptions to the
sale of new and existing products. The international scope of Meridian’s
operations, including changes in the relative strength or weakness of
the U.S. dollar and general economic conditions in foreign countries,
can impact results and make them difficult to predict. One of Meridian’s
growth strategies is the acquisition of companies and product lines.
There can be no assurance that additional acquisitions will be
consummated or that, if consummated, will be successful and the acquired
businesses will be successfully integrated into Meridian’s operations.
There may be risks that acquisitions may disrupt operations and may pose
potential difficulties in employee retention and there may be additional
risks with respect to Meridian’s ability to recognize the benefits of
acquisitions, including potential synergies and cost savings or the
failure of acquisitions to achieve their plans and objectives. The
Company cannot predict the possible impact of U.S. healthcare
legislation enacted in 2010 – the Patient Protection and Affordable Care
Act, as amended by the Healthcare and Education Reconciliation Act – and
any modification or repeal of any of the provisions thereof, and any
similar initiatives in other countries on its results of operations. In
addition to the factors described in this paragraph, Part I, Item 1A
Risk Factors of our Form 10-K contains a list and description of
uncertainties, risks and other matters that may affect the Company.
Meridian is a fully integrated life science company that develops,
manufactures, markets and distributes a broad range of innovative
diagnostic test kits, purified reagents and related products and offers
biopharmaceutical enabling technologies. Utilizing a variety of methods,
these products and diagnostic tests provide accuracy, simplicity and
speed in the early diagnosis and treatment of common medical conditions,
such as gastrointestinal, viral and respiratory infections. Meridian’s
diagnostic products are used outside of the human body and require
little or no special equipment. The Company's products are designed to
enhance patient well-being while reducing the total outcome costs of
healthcare. Meridian has strong market positions in the areas of
gastrointestinal and upper respiratory infections, serology,
parasitology and fungal disease diagnosis. In addition, Meridian is a
supplier of rare reagents, specialty biologicals and related
technologies used by biopharmaceutical companies engaged in research for
new drugs and vaccines. The Company markets its products and
technologies to hospitals, reference laboratories, research centers,
diagnostics manufacturers and biotech companies in more than 60
countries around the world. The Company’s shares are traded on the
NASDAQ Global Select Market, symbol VIVO. Meridian's website address is www.meridianbioscience.com.
Contacts:
Meridian Bioscience, Inc.
John A. Kraeutler, Chief Executive
Officer, 513-271-3700
Source: Meridian Bioscience, Inc.
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