INVERNESS MEDICAL INNOVATIONS ANNOUNCES
FOURTH QUARTER 2007 RESULTS
WALTHAM, MA...February 20, 2008...
Inverness Medical Innovations, Inc. (AMEX: IMA
), a global
leader in rapid point-of-care diagnostic products, today announced its financial results for the
quarter ended December 31, 2007.
In the fourth quarter of 2007, the Company recorded net revenue of $288.0 million compared to net
revenue of $157.0 million in the fourth quarter of 2006. The revenue increase was primarily due to
increased product sales in our Professional Diagnostics segment which grew from $87.2 million in
the fourth quarter of 2006 to $234.2 million in 2007, principally as a result of businesses
acquired which contributed $139.3 million of the increased product revenue. Partially offsetting
this increase was a decrease of $16.1 million in revenue as compared to the prior years quarter as
a result of our second quarter of 2007 formation of a joint venture for our Consumer Diagnostics
business with the Procter & Gamble Company and a $3.3 million decrease in product sales from our
For the fourth quarter of 2007, the net loss prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP) was $12.5 million, or $0.19 per
diluted common share, compared to net income of $6.0 million, or $0.15 per diluted common share,
for the fourth quarter of 2006. The Company reported adjusted cash basis net income of $27.6
million, or $0.40 per diluted common share, for the fourth quarter of 2007, compared to adjusted
cash basis net income of $13.8 million, or $0.34 per diluted common share, for the fourth
quarter of 2006.
The Companys GAAP results for the fourth quarter of 2007 include amortization of $25.6 million,
the write-off of $4.8 million of in-process research and development acquired in connection with
our acquisition of Diamics, $5.2 million of restructuring charges, $5.3 million of stock-based
compensation expense, a $0.8 million charge related to the write-up to fair market value of
inventory acquired in connection with the Cholestech and HemoSense acquisitions, and an
unrealized foreign currency loss of $3.9 million associated with a cash escrow established in
connection with the acquisition of BBI Holdings Plc. GAAP results for the fourth quarter of
2006 include amortization of $5.4 million, a $1.2 million restructuring charge, and $1.6 million
of non-cash stock-based compensation expense. These amounts, net of tax, have been excluded
from the adjusted cash basis net income per common share for the respective quarters.