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Meridian Bioscience Reports Flat Fiscal Q4 Revenues, FY16 Revenues Up 1 Percent

NEW YORK (GenomeWeb) – Meridian Bioscience today reported flat fiscal fourth quarter revenues and a 1 percent increase in fiscal year 2016 revenues.

The results were consistent with preliminary earnings announced last month that sent the firm's stock tumbling.

For the quarter ended Sept. 30, the Cincinnati, Ohio-based molecular diagnostics manufacturer saw fourth quarter revenue of $47.1 million compared to $47.0 million in the prior year, missing the analysts' consensus estimate of $47.7 million.

"Our financial condition is strong and we remain committed to using our leverage to seek complementary acquisitions," said Meridian Chairman and CEO John Krautler, in a statement.

Revenues from the firm's diagnostics segment were flat at $34.9 million versus $34.8 million in the previous year, while revenues in the life science segment were down slightly to $12.1 million from $12.3 million.

Meridian's net earnings fell to $5.5 million, or $.13 per share, from $8.5 million, or $.20 per share, in fiscal Q4 of 2015. On an adjusted basis, the firm reported earnings of $.14 per share, meeting the consensus Wall Street estimate of $.14 per share.

In fiscal Q4, Meridian's R&D expenses rose 31 percent to $3.8 million from $2.9 million, while its SG&A expenses jumped 20 percent to $16.4 million from $13.7 million.

For the full fiscal year, the firm reported revenues rose to $196.1 million from $194.8 million in 2015, missing the analysts' consensus estimate of $196.5 million.

Revenues from the diagnostics segment fell to $145.1 million from $146.1 million in 2015, while revenues in the life science segment rose to $51.0 million from $48.7 million. Overall, the diagnostics business benefitted from the acquisition of Magellan Diagnostics, but this was offset by an 8 percent decrease in core diagnostics revenues in the Americas.

The firm's net earnings for the year fell to $32.2 million, or $.76 per share, from $35.5 million, or $.85 per share, in FY 2015. On an adjusted basis, the firm reported earnings per share of $.80, in line with Wall Street estimates.

For the fiscal year, R&D expenses rose 10 percent to $13.8 million from $12.6 million, while SG&A spending rose 14 percent to $60.5 million from $53.2 million.

Meridian noted that its Illumigene product line now includes 10 tests, and the firm expects three to four new tests to be introduced over the next 18 months.

The company ended the year with $47.2 million in cash and cash equivalents. It also announced an annual indicated cash dividend rate of $.80 per share for fiscal 2017, the same as fiscal 2016.

For fiscal 2017, Meridian reaffirmed its guidance for revenues of $205 million to $210 million, and earnings per share of $.81 to $.85. Analysts are expecting revenues of $206.1 million and earnings per share of $.82 for 2017.

In Thursday afternoon trade on the Nasdaq, shares of Meridian were up nearly 2 percent at $17.25.