Surging flu revenue helps Inverness post 3Q profit

Inverness Medical turns profit in 3Q as flu revenue up almost sixfold, acquisitions lift sales

• On 2:22 pm EDT, Tuesday October 27, 2009

WALTHAM, Mass. (AP) -- Diagnostics company Inverness Medical Innovations Inc. said Tuesday it turned a profit in the third quarter as sales of flu tests jumped more than fivefold.

Inverness reported a profit of $14.3 million, or 17 cents per share. Leaving out one-time costs such as amortization, restructuring and stock-based compensation, it earned $66.6 million, or 74 cents per share. Inverness lost $9.1 million, or 12 cents per share, a year ago.

According to Thomson Reuters, analysts expected a profit of 61 cents per share, on average. Inverness shares set an annual high of $42.99 Tuesday. In afternoon trading they returned some of their earlier gains, but were still up 68 cents at $40.92.

The company said its net revenue climbed 22 percent to $535.8 million from $438.8 million. That included $40.4 million in North American flu product revenue, compared to $6.8 million a year ago. Inverness also reported $37.4 million in revenue from acquisitions, such as a diagnostic kit business it bought from ACON Laboratories in March, and its recent purchase of Concateno PLC.

Analysts had expected $491.7 million in revenue.