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Zurich, Switzerland, May 4, 2004 – Tecan today reported its first quarter results 2004.
First quarter sales 2004 reached CHF 70.7 million, an increase of 1.2% compared with CHF 69.9 million in 2003. Excluding the impact of currency, Q1 sales increased by 1.7% versus the prior year.
Biopharma (Genomics/Proteomics/Drug Discovery) sales reached CHF 42.4 million during the first quarter 2004, or 60.1% of total sales, an increase of 1.2%. Sales in Genomics/Proteomics continued to show a strong performance with an increase of 16.1% in Swiss Francs or 18.6% in local currency to CHF 21.4 million. Drug Discovery sales declined by 10.5% in Swiss Francs, or 10.0% in local currency, to CHF 21.1 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 CHF 28.2 million or 39.9% of total sales in 2004, an increase of 1.1% in Swiss Francs or 0.6% in local currency over the first quarter 2003.
Aitor Galdos, Chief Executive Officer of Tecan, commented: “Our results are in line with expectations. 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. Based on our strategic business assessment, we also continued our efforts to improve operational efficiencies and strengthen the company’s organization. Our new management structure is now in place.” He added: “During the quarter, we introduced a number of new products that will help the company reach its objectives for 2004.”
Operating profit increased by 23.1% to CHF 6.4 million compared with CHF 5.2 million in the first quarter 2003. This increase was largely the result of the restructuring measures implemented in 2003. Without a special, one-time charge of CHF 1.6 million, which was due to a change in the Tecan pension plan, operating profit would have reached CHF 8.0 million. Net profit increased by 53.1% to CHF 5.3 million, representing 7.5% of sales (2003: CHF 3.5 million or 5.0% of sales). Earnings per share increased by 71.4% to CHF 0.48 (2003: CHF 0.28).
Tecan’s order book entry during the first quarter was below the average orders registered over the last two years, which means a second quarter in line with the result of last year. For the full year 2004, Tecan maintains its previous guidance of low single digit sales growth in local currencies and an operating profit margin of at least 11% of sales.
Tecan’s goal is to continue providing cutting edge solutions of the highest possible quality to its customers worldwide. The company is committed to achieving sustainable growth and above average profitability.
Chief Executive Officer
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