A Setback at Invitrogen: Fool by Numbers

On Feb. 13, biotech company Invitrogen (Nasdaq: IVGN  ) released earnings for the fourth quarter ended Dec. 31.

• Revenues grew by 1.4%; the 2.7% growth in the biodiscovery division was offset by the 1% decline in the cell culture division's revenue.
• The company reported a net loss of $100 million versus a profit of about $50 million in the year-ago quarter, primarily due to merger-related impairments totaling $149 million to amortization and goodwill.
• Free cash flow declined by 26.8% because of a huge net loss and unfavorable changes on the balance sheet.
• Invitrogen has decided to sell its BioReliance business unit to Avista Capital Partners for about $210 million.
• Last year, the company repurchased 5.8 million shares for $350 million.

(Figures in millions, except per-share data)

Income Statement Highlights

	Q4 2006	Q4 2005	Change
Sales	$329.8	$325.3	1.4%
Net Profit	($100.2)	$49.6	N/A
EPS	($2.08)	$0.94	N/A
Diluted Shares	48.1	58.7	(18.0%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q4 2006	Q4 2005	Change*
Gross Margin	58.2%	55.8%	2.5
Operating Margin	(27.0%)	8.3%	(35.3)
Net Margin	(30.4%)	15.3%	(45.6)

*Expressed in percentage points

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Balance Sheet Highlights

Assets	Q4 2006	Q4 2005	Change
Cash + ST Invest.	$380.3	$751.9	(49.4%)
Accounts Rec.	$205.3	$194.9	5.3%
Inventory	$149.7	$136.8	9.5%

Liabilities	Q4 2006	Q4 2005	Change
Accounts Payable	$223.4	$244.3	(8.6%)
Long-Term Debt	$1,155.0	$1,386.2	(16.7%)

Learn the ways of the balance sheet.

Cash Flow Highlights

	2006	2005	Change
Cash From Ops.	$235.1	$309.3	(24.0%)
Capital Expenditures	$61.1	$71.8	(14.9%)
Free Cash Flow	$174.0	$237.6	(26.8%)

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Related companies:

• Techne (Nasdaq: TECH  )
• Bio-Rad Laboratories (AMEX: BIO  )
• Becton, Dickinson (NYSE: BDX  )
• Stratagene ( Nasdaq: STGN)
• Harvard Bioscience (Nasdaq: HBIO  )

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• Strong Start at Meridian Bioscience
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.