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Strategic Diagnostics Inc. Reports Operating Results (10-Q)

August 13, 2012 | About:
10qk

10qk

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Strategic Diagnostics Inc. (SDIX) filed Quarterly Report for the period ended 2012-06-30.

Strategic Diagnostics Inc. has a market cap of $26.3 million; its shares were traded at around $1.266 with and P/S ratio of 1.1.

Highlight of Business Operations:

Revenues for the three months ended June 30, 2012 decreased 9% to $5.5 million, compared to $6.1 million for the same period in 2011. The decrease in revenues in the second quarter of 2012 was the result of a 2% decrease in sales of Kit Products and a 12% decrease in the sale of Life Sciences products and services as discussed below in more detail.

Life Sciences revenues decreased 12% to $3.6 million for the three-month period ended June 30, 2012, compared to $4.2 million for the same period in 2011. This decrease was primarily the result of decreased sales to all of the Company s customer categories, except in-vitro diagnostic. Sales to the Company s in-vitro diagnostic customers increased 0.5% to approximately $2.3 million, sales to biopharma customers decreased 31% to $0.6 million, sales to content/resellers decreased 30% to $0.6 million and sales to academic/government customers decreased 0.5% to $0.1 million. Included in the in-vitro diagnostic sales is $0.1 million recognized pursuant to the Becton Dickinson (BD) Diagnostics multiple-element arrangement as described in Note 1, Revenue Recognition. These decreases were primarily related to a softening biopharmaceutical market.

Kit Products revenues decreased 2% to $1.86 million for the three-month period ended June 30, 2012 as compared to $1.90 million for the same period of 2011. Sales of food pathogen products decreased 1% to $1.60 million for the three months ended June 30, 2012 from $1.62 million for the same period in 2011. This decrease was primarily the result of decreased sales of tests to detect the pathogen E. Coli, as USDA regulations for the testing of this pathogen in beef and beef products have changed, requiring many of the Company s customers to change to a new method for testing (a technology different from the Company s). Ag-GMO product sales decreased 12%, to $0.25 million, in the second quarter of 2012 as compared to the same period of 2011. This decrease was primarily attributable to lower sales of seed testing products in Brazil, where sales have declined over the past few years due to reduced demand for the testing of Genetically Modified Organisms (GMOs).

Life Sciences revenues decreased 12% to $7.6 million for the six-month period ended June 30, 2012, compared to $8.7 million for the same period in 2011. This decrease was primarily the result of decreased sales to all of the Company s customer categories, except in-vitro diagnostic. Sales to the Company s in-vitro diagnostic customers increased 3% to approximately $5.0 million, sales to biopharma customers decreased 42% to $1.0 million, sales to content/resellers decreased 22% to $1.3 million and sales to academic/government customers decreased 13% to $0.3 million. Included in the in-vitro diagnostic sales is $1.0 million recognized pursuant to the Becton Dickinson (BD) Diagnostics multiple-element arrangement as described in Note 1, Revenue Recognition. These decreases were primarily related to the timing of IVD sales and a softening biopharmaceutical market.

Kit Products revenues decreased 11% to $3.5 million for the six months ended June 30, 2012 as compared to $4.0 million for the same period of 2011. Sales of food pathogen products decreased 10% to $3.1 million for the six months ended June 30, 2012 from $3.4 million for the six-month period ended June 30, 2011. This decrease was primarily the result of decreased sales of tests to detect the pathogen E. Coli, as USDA regulations for the testing of this pathogen in beef and beef products have changed, requiring many of the Company s customers to change to a new method for testing (a technology different from the Company s). Ag-GMO product sales decreased 21%, to $0.4 million, in the first six months of 2012 as compared to the same period of 2011. This decrease was primarily attributable to lower sales of seed testing products in Brazil, where sales have declined over the past few years due to reduced demand for the testing of Genetically Modified Organisms (GMOs).

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