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Meridian Bioscience's Q2 Revenues Up 6 Percent

NEW YORK (GenomeWeb) – Meridian Bioscience today reported a 6 percent increase in its fiscal second quarter revenues on strong growth in its life science segment.

For the three months ended March 31, Meridian's revenues climbed to $54.1 million from $51.3 million, exceeding analysts' consensus estimate of $51.2 million.

Revenues from the company's life science division were up 18 percent to $16.4 million from $13.9 million, driven by a 25 percent increase in immunoassay reagent sales and 10 percent growth in its  molecular tools and components business on a constant currency basis.

Revenues for Meridian's diagnostics segment, meanwhile, edged up slightly to $37.8 million from $37.4 million. The Magellan Diagnostics business, which Meridian acquired in March 2016, posted revenues of $3.6 million, flat with the same period last year.

"The second quarter of fiscal 2017 rebounded from the first quarter both in terms of revenues and net earnings performance," Meridian Chairman and CEO John Kraeutler said in a statement. "The overall portfolio performed well. However, our life science segment was especially strong, posting record revenues."

Kraeutler added that the second quarter is typically Meridian's strongest given its portfolio of respiratory products, and that the company expects to report progress on its growth initiatives — such as the expansion of its Illumigene molecular diagnostic test menu for insect vector diseases — when it releases its fiscal third quarter results.

Meridian's net earnings in the quarter were up 3 percent at $9.3 million, or $.22 a share, from $9.1 million, or $.21 a share. Analysts had, on average, expected earnings per share of $.19.

The firm's R&D spending jumped nearly 26 percent to $3.9 million from $3.1 million, while SG&A costs rose 9 percent to $15.4 million from $14.1 million.

Meridian finished the quarter with cash and cash equivalents totaling $54.7 million.

Looking ahead, Meridian said that it expects its fiscal 2017 net revenues to be in the range of $193 million to $199 million, with earnings per share between $.64 and $.69. The earnings per share guidance assumes an increase in diluted shares outstanding from approximately 42.4 million at the end of fiscal 2016 to approximately 42.6 million at the end of fiscal 2017.

During early morning trading on the Nasdaq, shares of Meridian were up more than 7 percent, climbing $1.05 to $15.25.