Tecan reports sales of $55.6 million and net profit of $4.1 million
sales but higher profits in the first quarter of 2004, which it
said was largely the result of the restructuring measures
implemented in 2003.
The company reported first-quarter sales rose by 1.2 per cent to $55.6 million (€45.7 million), an increase of 1.2 per cent compared with $54.9 million in 2003. In local currency terms the increase was 1.7 per cent. In 2003 Tecan posted revenues of $230 million.
Tecan specialises in the development, production and distribution of solutions for discovery of pharmaceutical substances, as well as for genomics, proteomics, and diagnostics.
The first quarter results are a welcome indication that growth throughout last year has been maintained into 2004.
The company's operating profits increased by 23.1 per cent to $5 million. This compared favourably with $4 million in the first quarter of 2003. The increase in profits was achieved even with a special, one-time charge of $1.2 million which was due to a change in the Tecan pension plan.
Aitor Galdos, chief executive officer of Tecan, said: "Due to the positive effect of the restructuring measures implemented in 2003, Tecan was able to increase its profitability despite a constant sales level during the first quarter. Our new management structure is now in place."
In terms of markets, Tecan's sales in genomics and proteomics continued to show a strong performance with an increase of 16.1 per cent to $16.8 million.
However drug discovery sales declined by 10.5 per cent to $16.6 million. This decrease was primarily due to the continuing low market demand in this specific market segment. Diagnostics sales were consistent with the previous six quarters, reaching $22.1 million (€18.1 million) or 39.9 per cent of total sales in 2004, an increase of 1.1 per cent .
Galdos commented: "During the quarter, we introduced a number of new products that will help the company reach its objectives for 2004."
These products included Freedom EVO, a series of scalable and upgradeable automation platforms for clinical diagnostic laboratories for the clinical market as well as the Freedom EVOware, a software package for Tecan's new range of liquid handling platforms.
Tecan has also launched the Safire2 microplate reader, a modular monochromator-based microplate detection system that offers a new level of speed and versatility in detection.
In addition last month saw Tecan sign an €8.4 million agreement with the South African Police Service to provide a fully automated DNA typing system for national forensic databank
While Tecan's order book entry during the first quarter was below the average orders registered over the last two years, for 2004, Tecan maintained its previous guidance of low single digit sales growth in local currencies and an operating profit margin of at least 11 per cent of sales.
