Millipore Corp. has a market cap of $5.97 billion; its shares were traded at around $106.2 with a P/E ratio of 25.5 and P/S ratio of 3.6. Millipore Corp. had an annual average earning growth of 5.2% over the past 10 years.MIL is in the portfolios of John Griffin of Blue Ridge Capital, PRIMECAP Management, Ron Baron of Baron Funds, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Chris Davis of Davis Selected Advisers.
Highlight of Business Operations: Operating profit increased to $88.1 million for the three months ended April 3, 2010 from $71.3 million in the prior year comparable period. Higher revenues, favorable impact from changes in foreign currency exchange rates, and lower costs related to the global supply chain initiatives were the primary drivers of the increase. This profit expansion enabled us to continue to invest in research and development in accordance with our innovation strategy and absorb the effects of an unfavorable product mix and higher employee-related costs. Our gross margin increased to 56 percent for the three months ended April 3, 2010 from 55 percent in the prior year comparable period.
Diluted GAAP and non-GAAP earnings per share (EPS) were $0.99 and $1.21, respectively, for the three months ended April 3, 2010 and increased by $0.04 and $0.15, respectively, versus the prior year comparable period. (Please see our non-GAAP reconciliation which begins on page 28.) Higher operating profit contributed to higher GAAP EPS, which was offset by a higher tax rate in the current period and the absence this year of the $8.5 million non-taxable gain resulting from our Guava business acquisition. Diluted EPS was also adversely impacted by shares issuable upon conversion of the 3.75 percent convertible notes becoming dilutive as a result of the increase in our stock price during the three months ended April 3, 2010 and an increase in dilution of stock-based compensation awards.
Bioprocess revenues of $258.3 million for the three months ended April 3, 2010 increased $28.3 million, or 12 percent, versus the prior year comparable period. Excluding the favorable effect of foreign currency translation, Bioprocess revenues increased 9 percent. The revenue growth was primarily attributable to higher sales of our downstream bioprocessing products used in biopharmaceutical manufacturing, which was a result of the following: higher spending levels by our North America biotechnology customers as these customers are accelerating their production of monoclonal antibodies; increased revenues related to disposable manufacturing as companies continue to migrate to single use, disposable technologies that eliminate the need for cleaning and sterilization, thus shortening the time between processing runs; and higher revenues in Asia, particularly in China and Singapore, due to biotechnology industry growth in the region and more stringent regulatory compliance standards in China.
Bioscience revenues of $204.7 million for the three months ended April 3, 2010 increased $26.8 million, or 15 percent, versus the prior year comparable period. Excluding the favorable effect of foreign currency translation, Bioscience revenues increased 9 percent. The divisions revenue growth benefited from increased spending from pharmaceutical customers and higher sales of laboratory instrumentation products. These two areas were weak last year and benefited from an improving economic environment in the three months ended April 3, 2010, particularly in North America and Asia. Bioscience revenue growth was also attributable to successful new product launches and a $3.3 million revenue from a technology license.
Research and development (R&D) expenses increased $4.9 million, or 19 percent, versus the prior year comparable period. Excluding the adverse effect of foreign currency translation, R&D expenses increased $4.5 million, or 18 percent. The increase was primarily attributable to increased employee-related costs driven by salary increases, higher incentive compensation costs, and increased headcount. Additionally, technology partner payments have increased as a result of our strategy to enhance our internal R&D capabilities through technology collaborations and license arrangements with third parties. We expect 2010 full year R&D expenses to be approximately 7 percent of revenues.
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