-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QWd9Nt0V+Hx7X1+bhYS3Sq6QVdmOXbeYCV6NpKZ9TrJT6H/CenXkYEq0lnQJKxqS fYWIx3TbBbpdcIV+6YXKkw== 0001104659-07-056114.txt : 20070725 0001104659-07-056114.hdr.sgml : 20070725 20070725163026 ACCESSION NUMBER: 0001104659-07-056114 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070725 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070725 DATE AS OF CHANGE: 20070725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: IMMUCOR INC CENTRAL INDEX KEY: 0000736822 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 222408354 STATE OF INCORPORATION: GA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-14820 FILM NUMBER: 07999643 BUSINESS ADDRESS: STREET 1: 3130 GATWAY STREET 2: PO BOX 5625 CITY: NORCROSS STATE: GA ZIP: 30091 BUSINESS PHONE: 770 441 2051 MAIL ADDRESS: STREET 1: 3130 GATEWAY DR STREET 2: P O BOX 5625 CITY: NORCROSS STATE: GA ZIP: 30091-5625 8-K 1 a07-20148_38k.htm 8-K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  July 25, 2007

IMMUCOR, INC.

(Exact name of registrant as specified in its charter)

Georgia

 

0-14820

 

22-2408354

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(IRS Employer
Identification No.)

 

 

 

 

 

3130 Gateway Drive P.O. Box 5625 Norcross, Georgia

 

30091-5625

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code, is (770) 441-2051

Not applicable
(Former name or former address,
if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions.

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 




Item 2.02.  Results of Operations and Financial Condition

        Immucor, Inc. (the “Company’) issued a press release on July 25, 2007 announcing the Company’s earnings and certain other results of operations for its fourth quarter ended May 31, 2007.  This press release is furnished with this Current Report as Exhibit 99.1.  Dr. Gioacchino De Chirico, President and Chief Executive Officer; Patrick Waddy, Chief Financial Officer, and Edward L. Gallup, consultant, will host a conference call on Thursday, July 26, 2007 to review the contents of the press release and to answer questions from investors.

Item 9.01.  Financial Statements and Exhibits

(d)  Exhibits

EXHIBIT NUMBER

 

DESCRIPTION

99.1

 

Press Release dated July 25, 2007.

 

2




SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

IMMUCOR, INC.

 

 

 

Date: July 25, 2007

By:

/s/ Patrick D. Waddy

 

 

Patrick D. Waddy

 

 

Chief Financial Officer

 

3




EXHIBIT INDEX

EXHIBIT NO.

 

DESCRIPTION

99.1

 

Press Release dated July 25, 2007.

 

 

4



EX-99.1 2 a07-20148_3ex99d1.htm EX-99.1

Exhibit 99.1

SHAREHOLDER NEWS
FOR IMMEDIATE RELEASE
CONTACT: Patrick Waddy
770-441-2051

IMMUCOR ANNOUNCES RECORD FISCAL FOURTH QUARTER
AND RECORD YEAR END RESULTS

NORCROSS, GA. (July 25, 2007) — Immucor, Inc. (Nasdaq/NM: BLUD), a global leader in providing automated instrument-reagent systems to the blood transfusion industry, today reported financial results for the fiscal fourth quarter and year ended May 31, 2007.

Revenue for the fiscal fourth quarter was a record $61.1 million, up 22% from $50.0 million in the same period last year. Of the $11.1 million total increase in revenues, approximately $2.0 million came from volume increases including instrument, warranty and service revenue in the United States, approximately $7.6 million came from price increases in the United States, approximately $0.7 million came from revenue increases outside the United States including instrument revenues, and the effect of the change in the Euro, Japanese Yen and Canadian dollar exchange rates increased revenue by approximately $0.8 million. Gross margin improved during the quarter to a record 73.7% up from 68.4% in the prior year quarter.

Net income for the fourth quarter was a record $18.2 million, up 51% from $12.1 million for the same quarter last year. Diluted earnings per share totaled $0.26 on 71.0 million weighted average shares outstanding, up from $0.17 on 70.7 million weighted average shares outstanding for the same period last year.

Sales of instruments were $4.4 million in the fourth quarter of fiscal 2007, an increase from $3.8 million in the fiscal 2006 fourth quarter. As of May 31, 2007, deferred instrument revenues, including deferred service revenues, totaled $19.7 million, an increase of $1.2 million in the fourth quarter of fiscal 2007. The revenues on most instrument sales in the United States are recognized over the life of the underlying reagent contract, which is usually 5 years. However, we record the entire cost of sales of an instrument when our contractual obligations related to the sale of the instrument are completed.

Reagent gross margin grew to 80.7% during the fourth quarter of fiscal 2007 compared to 77.5% in the same period last year. The previously mentioned price increases were responsible for this improvement.

For the year ended May 31, 2007, revenues totaled a record $223.7 million, a 22% increase over the prior year. Net income was $60.1 million, a $20.2 million increase over the prior year. Diluted earnings per share totaled $0.85 on 70.7 million weighted average shares outstanding for the year ended May 31, 2007 as compared to diluted earnings per share of $0.56 on 71.4 million weighted average shares outstanding for the prior year.




“We are extremely pleased with both our quarterly and annual results,” said Dr. Gioacchino De Chirico, President and Chief Executive Officer. “All-time highs were once again achieved in revenues, gross margin, and net income for both the three-month period and the year ended May 31, 2007. Our strategies to grow our business and the execution of our plan continue to generate outstanding results.” Commenting further, Dr. De Chirico stated, “Based on the very positive customer reaction to our recent launch of the Galileo® ECHOTM in the United States and Europe, we believe we can achieve future market share gains and revenue growth through continued Galileo placements and placements of the ECHO. Research and development work continues on a second generation Galileo and we expect that improvements in the second generation Galileo will extend by several years the life of the instrument in the market. As of May 31, 2007 the Company had received purchase orders for a total of 481 Galileo instruments worldwide (an increase of 21 in the quarter), including 286 in Europe, 193 in North America and 2 in Japan, and 423 of these instruments were generating reagent revenues, an increase of 29 in the quarter.”

 

Selected Highlights

-Sales of traditional reagent products, i.e., products not using the Company’s patented Capture® technology, increased $8.1 million, or 23%, from $35.9 million in the fourth quarter of 2006 to $44.0 million in the fourth quarter of 2007. Sales of Capture products increased approximately $2.5 million to $11.9 million, a 27% increase over the prior year quarter.

-For the current fiscal year, sales of traditional reagent products were $159.9 million compared with $132.7 million in the prior year, an increase of 20%. Capture® product sales increased approximately $8.4 million to $42.7 million, an increase of 24% over the prior year.

-The gross margin on traditional reagents was 79.5% for the current quarter, compared with 76.6% in the prior year quarter. The gross margin on Capture® products was 85.1% for the current quarter, compared with 80.9% in the prior year quarter.  The increase in gross margin is primarily due to price increases in the United States.

-Sales of instruments were $4.4 million in the fourth quarter of 2007 compared to $3.8 million in the fourth quarter of 2006. The gross margin on instruments, including the impact of the cost of providing service, was 0.1% for the current quarter, compared to a negative 33.9% for the same quarter last year.

-The effect on revenues of the change in the Euro, Japanese Yen and Canadian dollar exchange rates was an increase of approximately $0.8 million for the fourth quarter of fiscal 2007 as compared to the prior year quarter.  The effect on net income of the change in the Euro, Japanese Yen and Canadian dollar exchange rates was an increase of approximately $0.1 million in the quarter ended May 31, 2007 as compared to the prior year quarter.




-Distribution expenses increased by $0.3 million in the fourth quarter and selling and marketing expenses increased by $2.1 million as compared to the prior year quarter. Selling and marketing expenses in the United States were impacted by an increase of $0.4 million in personnel costs, an increase in travel costs of $0.3 million, an increase in bad debt expense of $0.2 million, and an increase in stock-based compensation expense of $0.2 million related to the adoption of SFAS 123R. Selling and marketing expenses in Germany were impacted by an increase of $0.3 million in employee termination costs. General and administrative expenses decreased by $1.1 million for the fourth quarter of fiscal 2007 as compared to the prior year quarter. General and administrative expenses were impacted by a $1.6 million decrease in audit and SOX costs, and a $0.3 million decrease in legal expenses, partially offset by a $0.2 million increase in personnel costs, a $0.2 million increase in tax services, a $0.1 million increase in consulting costs, a $0.1 million increase in management bonus expense, and a $0.3 million increase in stock based compensation expense that resulted from the adoption of SFAS 123R. Research and development expenses increased by $0.5 million to $1.7 million in the fourth quarter caused by a $0.1 million increase in management bonus expense, a $0.1 million increase in stock based compensation expense related to the adoption of SFAS 123R, and $0.3 million in costs associated with the work on the second generation Galileo. Restructuring costs related to the Houston closure were $0.4 million in the fourth quarter, an increase of $0.3 million compared to the prior year quarter.

-Operations continue to generate strong cash flow. Cash, cash equivalents and marketable securities totaled $113.6 million at the end of the fourth quarter of fiscal 2007, compared to $93.7 million at the end of the third quarter and $55.7 million at May 31, 2006.

For the fourth quarter of fiscal 2007 human collagen sales decreased approximately $0.1 million, to $0.8 million, as compared to the prior year quarter. Human collagen sales were $4.1 million for the twelve months ended May 31, 2007, an increase of $0.2 million compared to the prior year.  The gross margin on human collagen sales was a negative 11.5% during the fourth quarter of fiscal 2007, compared with 43.3% in the prior year quarter. Given the relatively small amount of collagen sales, and our plan to discontinue the production of collagen in fiscal 2008 when our present commitment to a third party expires, we do not expect to make any more announcements about collagen results.

Immucor, Inc. will host a conference call July 26, 2007 at 8:30 a.m. (EDT) to review these results.  Investors are invited to participate in this conference call with Dr. Gioacchino De Chirico, President and Chief Executive Officer; Patrick Waddy, Chief Financial Officer; and Edward L. Gallup, consultant. The call will focus on the results for the fourth quarter and general business trends.  This earnings release will be posted on Immucor’s website, as well as any material financial information that may be discussed by Messrs. De Chirico, Waddy or Gallup during this call that is not contained in the earnings release.  Both this earnings release and the additional financial information, if any, will be posted as soon as practicable after the call on the investor news section of Immucor’s website.  To access this information once posted, go to Immucor’s website at www.immucor.com and click on “About Us — Press Releases.”

To participate in the telephone conference call, dial 1-888-324-2874, pass code BLUD. Replays of the conference call will be available for one week beginning at 12:00 PM on




July 26, 2007 by calling 1-800-947-6564.  Beginning August 2, 2007, audio of the conference call or a transcript of the audio will be available on the “About Us — Press Releases” page of the Immucor website.

Founded in 1982, Immucor manufactures and sells a complete line of reagents and systems used by hospitals, reference laboratories and donor centers to detect and identify certain properties of the cell and serum components of blood prior to transfusion. Immucor markets a complete family of automated instrumentation for all of its market segments.

For more information on Immucor, please visit our website at www.immucor.com.

Statements contained in this press release that are not statements of historical fact are “forward-looking statements” as that term is defined under federal securities laws, including, without limitation, all statements concerning Immucor’s expectations, beliefs, intentions or strategies for the future.  Forward-looking statements may be identified by words such as “plans,” “expects,” “believes,” “anticipates,” “estimates,” “projects,” “will,” “should” and other words of similar meaning used in conjunction with, among other things, discussions of future operations, financial performance, product development and new product launches, FDA and other regulatory applications and approvals, market position and expenditures.  Factors that could cause actual results to differ materially from those expressed in any forward-looking statement include the following: the decision of customers to defer capital spending; the inability of customers to efficiently integrate our instruments into their blood banking operations; increased competition in the sale of instruments and reagents, particularly in North America; product development or regulatory obstacles; the ability to hire and retain key managers; changes in interest rates; fluctuations in foreign currency conversion rates; the ability of the Company’s Japanese subsidiary to attain expected revenue, gross margin and net income levels; the outcome of any legal claims known or unknown; delays in regulatory approvals required to move Houston manufacturing to another Company facility; other currently unforeseen events that could delay the move; higher than expected Houston closure costs; higher than expected manufacturing consolidation costs; the unexpected application of different accounting rules; and general economic conditions.  Further risks are detailed in the Company’s filings with the Securities and Exchange Commission.  Investors are cautioned not to place undue reliance on any forward-looking statements.  Immucor assumes no obligation to update any forward-looking statements.




 

IMMUCOR, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands except per share data)

(unaudited)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

May 31,

 

May 31,

 

May 31,

 

May 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

NET SALES

 

$

61,121

 

$

49,957

 

$

223,678

 

$

183,506

 

 

 

 

 

 

 

 

 

 

 

COST OF SALES

 

16,098

 

15,790

 

65,923

 

61,969

 

 

 

 

 

 

 

 

 

 

 

GROSS PROFIT

 

45,023

 

34,167

 

157,755

 

121,537

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

Research and development

 

1,696

 

1,222

 

6,354

 

4,623

 

Selling and marketing

 

7,431

 

5,326

 

26,595

 

20,877

 

Distribution

 

2,574

 

2,252

 

9,635

 

8,004

 

General and administrative

 

5,377

 

6,456

 

22,162

 

21,963

 

Restructuring expense

 

410

 

110

 

1,051

 

2,689

 

Amortization expense and other

 

87

 

87

 

346

 

341

 

Total operating expenses

 

17,575

 

15,453

 

66,143

 

58,497

 

 

 

 

 

 

 

 

 

 

 

INCOME FROM OPERATIONS

 

27,448

 

18,714

 

91,612

 

63,040

 

 

 

 

 

 

 

 

 

 

 

NON-OPERATING INCOME (EXPENSES)

 

 

 

 

 

 

 

 

 

Interest income

 

996

 

379

 

2,841

 

978

 

Interest expense

 

(98)

 

(81)

 

(432)

 

(516)

 

Other income (loss)

 

(96)

 

8

 

133

 

(342)

 

Total non-operating income (expenses)

 

802

 

306

 

2,542

 

120

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

28,250

 

19,020

 

94,154

 

63,160

 

PROVISION FOR INCOME TAXES

 

10,037

 

6,959

 

34,086

 

23,317

 

NET INCOME

 

$

18,213

 

$

12,061

 

$

60,068

 

$

39,843

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Per common share — basic

 

$

0.26

 

$

0.18

 

$

0.88

 

$

0.59

 

Per common share — assuming dilution

 

$

0.26

 

$

0.17

 

$

0.85

 

$

0.56

 

 

IMMUCOR, INC.

Selected Condensed Consolidated Balance Sheet Items

(Amounts in thousands)

 

 

 

May 31, 2007

 

May 31, 2006

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

Cash

 

$

113,551

 

$

54,103

 

Accounts receivable — trade

 

47,768

 

37,199

 

Inventory

 

29,320

 

20,651

 

Total current assets

 

199,820

 

120,792

 

Property and equipment — net

 

30,245

 

25,684

 

Total assets

 

275,478

 

191,687

 

 

 

 

 

 

 

Accounts payable

 

8,056

 

7,271

 

Total current liabilities

 

36,957

 

27,909

 

Other liabilities

 

19,075

 

19,907

 

Shareholders’ equity

 

219,448

 

143,871

 

 

 



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