On May 1, Invitrogen (NASDAQ:IVGN) released first-quarter earnings for the period ended March 31.

  • Top-line growth was solid, although keep in mind that three percentage points came from positive currency effects and not from product sales.
  • Diluted shares outstanding declined by 11.9% in the first quarter, primarily a result of the continued execution of the share-repurchase program. The company repurchased 1.5 million shares for $100 million in first quarter of 2007.
  • Invitrogen divested two of its business units, BioReliance and BioSource Europe, in the first quarter of 2007.
  • Management expects revenue from continuing operations to increase in the low-to-mid-single digits in 2007.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$308.7

$280.0

10.2%

Net Profit*

$29.9

$18.3

63.3%

EPS

$0.62

$0.34

82.4%

Diluted Shares

48.3

54.8

(11.9%)

*Income from continuing operations.

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

64.4%

64.2%

0.2

Operating Margin

14.4%

9.9%

4.5

Net Margin

9.7%

6.5%

3.1

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$333.6

$711.0

(53.1%)

Accounts Rec.

$178.0

$195.1

(8.7%)

Inventory

$152.9

$145.8

4.9%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable**

$195.1

$206.4

(5.5%)

Long-Term Debt

$1,151.3

$1,341.6

(14.2%)

**Includes accrued expenses and other current liabilities.

The balance sheet reflects the company's health.

Cash Flow Highlights

 2007

 2006

Change

Cash From Ops.

$69.0

$33.2

108.0%

Capital Expenditures

$12.0

$14.2

(15.4%)

Free Cash Flow

$57.0

$19.0

200.2%

Free cash flow is a Fool's best friend.

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