IDEXX LABORATORIES INC /DE Quarterly Report for Q2 Ended Jun 30, 2010

Summary

IDEXX Laboratories, Inc. reported solid financial results for the second quarter and first half of 2010, demonstrating resilience despite economic challenges. Total revenue increased by 5.9% for the quarter and 9.5% for the first half compared to the prior year, driven primarily by strong performance in the Companion Animal Group (CAG) segment, particularly in laboratory diagnostic services and practice information systems. The company successfully managed operating expenses, leading to a significant 11.5% increase in consolidated operating income for the quarter and a 17.9% increase for the first half. While economic conditions impacted certain areas, such as slower growth in rapid assay products and headwinds in the Water and LPD segments, IDEXX maintained a healthy gross profit margin of 53.0% for the six-month period. The company also highlighted its strong liquidity position, with a substantial increase in cash and cash equivalents and ample availability under its credit facility, indicating financial stability and the capacity to fund future growth initiatives and share repurchases.

Key Highlights

• 1Total revenue grew by 5.9% in Q2 2010 and 9.5% in the first half of 2010 year-over-year.
• 2The Companion Animal Group (CAG) segment showed robust revenue growth of 6.9% for the quarter and 10.4% for the first half, led by laboratory diagnostics and practice information systems.
• 3Consolidated operating income increased by 11.5% for the quarter and 17.9% for the first half.
• 4Gross profit margin remained strong at 53.0% for the first six months of 2010.
• 5Cash and cash equivalents increased to $117.975 million as of June 30, 2010.
• 6The company maintained a strong liquidity position with $65.1 million in remaining borrowing availability under its credit facility.
• 7Share repurchases continued, with $83.7 million spent in the first half of 2010.

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