Millipore Falls Short of Ests

Millipore Corp. (MIL - Snapshot Report) reported third-quarter earnings per share of 71 cents, well below the Zacks Consensus Estimate of 93 cents per share.

Revenues for the third quarter grew 4% from the previous year, totaling $412 million. Excluding a 3% unfavorable impact from changes in foreign currency, Millipore generated organic revenue growth of 7%. On a divisional basis, excluding changes in foreign currency, Millipore’s Bioprocess Division generated organic revenue growth of  8%, while the company’s Bioscience Division generated organic revenue growth of 4% from the previous year. In the Americas, revenue grew by 4% year over year while Asia recorded a 16% growth in revenues when compared to a similar period.

Bioprocess Division is sustaining its strong momentum and generating very attractive growth. The division’s performance has returned to tracking the strong fundamentals of the biotech industry and there was also an additional benefit of an increase in vaccine productions.

The company continues to increase its R&D spending in the third quarter and it is improving its innovation capabilities. Higher growth and profitability gives it the opportunity to invest while the general market is in a downturn. This investment will benefit its competitive position over time. The company completed the acquisition of BioAnaLab to extend the Company’s biopharmaceutical services offering to the European market.

Cash and equivalents were $190 million with long-term debt at $907 million and shareowner’s equity was at $1.4 billion.

It generated approximately $112 million of free cash flow, representing 74 % growth over the third quarter of 2008.  It also paid down $57 million of borrowings under the company’s $678 million primary revolving credit facility, leaving approximately $14 million drawn against it at the end of the quarter.

Millipore is a life science leader providing cutting-edge technologies, tools, and services for bioscience research and biopharmaceutical manufacturing. As a strategic partner, it collaborates with customers to confront the world's challenging human health issues. From research to development to production, its scientific expertise and innovative solutions help customers tackle their most complex problems and achieve their goals. The company was founded in 1954 and is headquartered in Billerica, Massachusetts. Major competitors of the company include Pall Corp. (PLL - Analyst Report).

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