General and administrative (G&A) expenses in the first quarter of 2008 were $11.9 million, compared to $11.3 million in the prior year period, an increase of 5% that resulted primarily from higher legal costs.
Gen-Probe continues to have a strong balance sheet. As of March 31, 2008, the Company had $487.6 million of cash, cash equivalents and short-term investments, and no debt. In the first quarter of 2008, Gen-Probe generated net cash of $67.5 million from its operating activities, more than double net income of $31.9 million.
Updated 2008 Financial Guidance
"We believe our strong operating performance in the first quarter has
us off to a good start in 2008, and we are therefore raising our full-year
revenue and EPS guidance," said Herm Rosenman, the Company's senior vice
president of finance and chief financial officer.
For the full year 2008, Gen-Probe now expects:
-- Total revenues of $450 million to $455 million.
-- Product gross margins approximating 68% to 70% of product sales.
-- R&D expenses approximating 23% to 24% of total revenues. The Company
expects quarterly R&D expenses to average more than $27 million for
the rest of 2008, with much of the increase associated with the US
clinical trial of the APTIMA HPV assay.
-- Marketing and sales expenses approximating 9% to 10% of total
-- G&A expenses approximating 11% of total revenues.
-- EPS of between $1.72 and $1.76, based on 55 million to 56 million
fully diluted shares outstanding for the year and a tax rate of
34% to 35%.
-- Regulatory Application for PROCLEIX ULTRIO Assay Submitted. On
February 21, Gen-Probe announced that the Company had submitted to the
|SOURCE Gen-Probe Incorporated|
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