Quarterly Statement of Operations Information

12 Months Ended

Sep. 29, 2012

Dec. 31, 2011

GEN-PROBE INCORPORATED [Member]

Quarterly Statement of Operations Information

18. Quarterly Statement of Operations Information (Unaudited)

The following table presents a summary of quarterly results of operations for fiscal 2012 and 2011:

	2012
	First Quarter		Second Quarter			Third Quarter		Fourth Quarter(2)
Total revenue	$	472,711	$	471,165		$	470,228	$	588,548
Gross profit		249,370		226,110			244,640		274,317
Net income (loss) (1)		20,812		(40,273	)		23,594		(77,767	)
Diluted net income (loss) per common share	$	0.08	$	(0.15	)	$	0.09	$	(0.29	)
	2011
	First Quarter		Second Quarter			Third Quarter		Fourth Quarter
Total revenue	$	432,571	$	438,651		$	451,082	$	467,045
Gross profit		224,734		220,687			234,561		243,199
Net income (3)		10,940		82,445			36,196		27,569
Diluted net income per common share	$	0.04	$	0.31		$	0.14	$	0.10

(1) Net loss in the second quarter of fiscal 2012 includes a charge for the discontinuance of the Adiana product line of $18.3 million and the loss on debt extinguishment of $42.3 million. See Note 5 for further discussion. Net loss in the fourth quarter of fiscal 2012 includes additional amortization expense from the Gen-Probe acquisition of $29.7 million, direct acquisition transaction costs of $30.7 million, and restructuring charges of $16.7 million, a goodwill impairment charge of $5.8 million and an in-process research and development charge of $4.5 million.

(2) The fourth quarter was a 14-week quarter compared to all other quarters which were 13-week quarters.

(3) Net income in the first quarter of fiscal 2011 includes a loss on debt extinguishment of $29.9 million and the second quarter of fiscal 2011 includes a gain on the sale of intellectual property of $84.5 million. See Notes 5 and 7 for further discussion.

Note 18. Quarterly Information (Unaudited)

The following tables set forth the quarterly results of operations for each quarter within the two-year period ended December 31, 2011. The information for each of these quarters is unaudited and has been prepared on the same basis as the Company’s audited consolidated financial statements. In the opinion of management, all necessary adjustments, consisting only of normal recurring accruals, have been included to fairly present the unaudited quarterly results when read in conjunction with the Company’s audited consolidated financial statements and related notes. The results of operations for any quarter are not necessarily indicative of results for any future period.

	2011
	1st Quarter		2nd Quarter		3rd Quarter			4th Quarter
	(In thousands, except per share data)
Product sales	$	138,112	$	132,921	$	136,393		$	155,162
Total revenues		143,038		135,898		139,123			158,175
Cost of product sales (excluding acquisition-related intangible amortization)		41,943		39,431		40,529			51,742
Gross profit		96,169		93,490		95,864			103,420
Total operating expenses		108,386		106,086		106,766			128,746
Net income (loss)		23,277		22,344		(15,356	)		19,859
Net income (loss) per share (1)
Basic	$	0.49	$	0.47	$	(0.33	)	$	0.43
Diluted	$	0.48	$	0.45	$	(0.33	)	$	0.42

	2010
	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter
	(In thousands, except per share data)
Product sales	$	130,569	$	132,734	$	128,313	$	131,093
Total revenues		135,419		138,649		132,565		136,694
Cost of product sales (excluding acquisition-related intangible amortization)		42,661		44,311		42,146		40,104
Gross profit		87,908		88,423		86,167		90,989
Total operating expenses		104,018		104,456		97,162		99,846
Net income		24,193		28,110		27,396		27,238
Net income per share (1)
Basic	$	0.49	$	0.57	$	0.57	$	0.57
Diluted	$	0.48	$	0.57	$	0.56	$	0.56

(1) Amounts shown may reflect rounding adjustments.