April 4, 2008

Neogen reports 34 percent jump in Q3 net income

Press Release

Neogen Corporation has announced that its net income for the third quarter of fiscal year 2008, which ended February 29, increased 34 percent from the previous year's third quarter.

Net income in the quarter rose to US$2.6 million compared to the prior year's US$1.9 million. Year-to-date net income for the first nine months of Neogen's 2008 fiscal year increased 31 percent to US$8.9 million from US$6.8 million in fiscal year 2007.

Third quarter revenues increased 20 percent to US$25.1 million, a record third quarter for the 25-year-old company, compared to the prior year's US$21 million. Year-to-date revenues for the first nine months rose 19 percent in the current fiscal year to US$75.3 million from fiscal year 2007's US$63.4 million.

The third quarter was the 60th consecutive profitable quarter from operations for the company.

Strong sales of disposable diagnostic test kits for both food and animal safety, along with sales added by recent acquisitions, led to the exceptional third quarter performance, according to Lon Bohannon, president and chief operating officer of Neogen.

Neogen Corporation develops and markets products dedicated to food and animal safety. The company's Food Safety Division markets dehydrated culture media, and diagnostic test kits to detect food borne bacteria, natural toxins, genetic modifications, food allergens, drug residues, plant diseases and sanitation concerns.