Company delivers significant increases in profitability and cash flow
BILLERICA, Mass. - January 31, 2024 - Millipore Corporation (NYSE:MIL), a life science leader that provides technologies, tools and services for bioscience research and biopharmaceutical manufacturing, today reported financial results for its fourth quarter and full year ended December 31, 2007.
Revenues for the fourth quarter grew 6 percent, totaling $405.2 million. Excluding a 6 percent benefit from changes in foreign currency, revenues in the fourth quarter were unchanged from the previous year. Excluding changes in foreign currency, Millipore’s Bioscience Division’s revenues grew 6 percent, offsetting a 4 percent decline in revenues from the Company’s Bioprocess Division.
For the full year 2007, revenues rose 22 percent, totaling $1.53 billion. Changes in foreign exchange rates contributed 5 percent to total revenue growth during 2007. Excluding currency rate changes and acquisitions not in the comparable period, Millipore’s total revenue growth in 2007 was 6 percent, which reflects 8 percent growth from its Bioscience Division and 5 percent growth in its Bioprocess Division.
On a GAAP basis, the Company reported fourth quarter net income of $45.1 million, or $0.81 per share, compared to $18.5 million, or $0.34 per share in 2006. Non-GAAP net income grew approximately 15 percent in the fourth quarter to $54.1 million, or $0.98 per share, compared to $46.9 million, or $0.86, in the fourth quarter of 2006. On a pre-tax basis, stock-based compensation expense in the fourth quarter of 2007 was $4.4 million, or $0.06 per share, and is reflected in both GAAP and non-GAAP earnings per share. A reconciliation of GAAP to non-GAAP financial measures is provided in the Company’s financial tables accompanying this press release.
For the full year, Millipore’s GAAP net income grew 41 percent to $136.5 million, or $2.48 per share, compared to $97.0 million, or $1.79 per share in 2006. Non-GAAP net income for 2007 grew 18 percent to $184.8 million, or $3.36 per share. On a pre-tax basis, stock-based compensation expense in 2007 was $16.0 million, or $0.20 per share, and is reflected in both GAAP and non-GAAP earnings per share.
“During 2007, we remained focused on advancing our innovation strategy by creating new alliances and increasing the number of our new product launches,” said Martin Madaus, Chairman & CEO of Millipore. “We generated solid financial performance, with 6 percent organic revenue growth, 16 percent growth in our non-GAAP earnings per share, and $121 million of free cash flow in 2007. This financial performance is the result of our balanced business portfolio and our commitment to driving improvements in profitability and cash flow.
“While we are pleased with our 2007 results overall, our fourth quarter performance was adversely affected by a pronounced slowdown in our Bioprocess business. A few of our largest North American biotech customers are lowering their inventories and reducing their purchases, which is negatively affecting our U.S. sales. We expect the lower level of spending from these customers to continue at least through the first half of 2008. Other than the slowdown in these few accounts, our Bioprocess Division generated double-digit growth from biotech customers in all geographic regions, and we remain confident in the long-term attractiveness of the global biotech industry. Over the next few quarters, we expect that growth in our Bioscience Division will help mitigate the near-term weakness we expect in our Bioprocess business until our largest customers resume more typical purchasing patterns.”
During 2007, Millipore continued to implement its five-year strategic plan designed to accelerate top and bottom-line growth. Three years ago, the Company outlined this strategic plan that included goals for enhancing its revenue growth, increasing its scale, expanding into new markets, and substantially improving its profitability and cash flow. Since 2004, the Company has made significant progress toward achieving these goals, generating compound annual revenue growth of 20 percent, increasing its revenues from $883 million to $1.53 billion, and expanding into new markets through four acquisitions. Additionally, Millipore has increased its non-GAAP operating margins from 16.8 percent in 2004 to 20.3 percent in 2007 and generated $555 million in cash flow from operations over the past three years.
“The successful execution of our strategic initiatives and the achievement of integration cost synergies were significant drivers of the 160 basis points of improvement in non-GAAP operating margin during 2007,” said Charles Wagner, Chief Financial Officer of Millipore. “We also had a strong year of cash flow performance, which enabled us to pay down approximately $200 million of debt. The reduction of our debt will continue to be a significant priority for the Company.”
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