MILFORD, Mass., Apr 23, 2002 (BUSINESS WIRE) -- Waters Corporation (NYSE/WAT) reported today that first quarter 2002 sales increased by 2% over prior year levels before unfavorable currency effects. After currency effects, reported sales growth was relatively flat with prior year. Earnings per diluted share (E.P.S.) were $0.27 for the quarter, before the after-tax impact of an additional patent litigation provision relating to the triple quadrupole product litigation, representing a 4% decrease over prior year E.P.S. of $0.28. Earnings after the patent litigation provision were $0.26 for the quarter.
Douglas A. Berthiaume, Chairman and Chief Executive Officer, said: "First quarter results were shy of our last sales expectation and were within the range of our last earnings expectation before a patent litigation provision. Cash flow continued to be strong in the quarter as we generated $39M of free cash flow. First quarter sales were impacted heavily by the unfavorable patent litigation ruling involving sales of certain mass spectrometry products in the United States. In addition, sales were negatively impacted by a strong U.S. dollar, delayed pharmaceutical customer spending at quarter end, and delayed product installations requiring deferral of revenue.
Our efforts to reengineer our mass spectrometry products affected by the unfavorable patent ruling, in order to resume their sales in the United States remain on track. We have begun limited shipments of certain Q-Tof Ultima(TM) products and plan to resume shipments of the full Q-Tof Ultima product line in the second half of 2002."
As communicated in a prior press release, Waters Corporation will webcast its first quarter 2002 financial results conference call this morning, April 23, 2002, at 8:30 a.m. eastern time. To listen to the call, connect to www.waters.info, choose Investor Relations and click on the Live Webcast. A replay of the call will be available from today through April 29, 2002 similarly by webcast, and also by phone at 402-220-5085.
Waters Corporation holds worldwide leading positions in three complementary analytical technologies - high performance liquid chromatography (HPLC), mass spectrometry (MS) and thermal analysis (TA). These markets account for $4.2 billion of the overall $19 billion analytical instrument market.
Certain statements contained herein are forward looking. Many factors could cause actual results to differ from these statements, including loss of market share through competition, introduction of competing products by other companies, pressures on prices from competitors and/or customers, regulatory obstacles to new product introductions, lack of acceptance of new products, changes in the healthcare market and the pharmaceutical industry, changes in distribution of the Company's products, and foreign exchange fluctuations. Such factors are discussed in detail in the Company's filings with the Securities and Exchange Commission.
Waters Corporation and Subsidiaries Consolidated Statements of Operation (In thousands, except per share data) (Unaudited) Three Months Ended March 31 2002 2001 Net sales 200,341 201,032 Cost of sales 71,432 73,298 Gross profit 128,909 127,734 Selling, general and administrative expenses 68,671 65,907 Research and development expenses 12,280 11,038 Patent litigation provision 2,800 -- Goodwill and purchased technology amortization 915 1,748 Operating income 44,243 49,041 Interest income, net 1,378 1,486 Income from operations before income taxes 45,621 50,527 Provision for income taxes 10,381 12,127 Net income 35,240 38,400 Net income per basic common share 0.27 0.30 Net income per diluted common share 0.26 0.28 Weighted average number of basic common shares 131,029 130,166 Weighted average number of diluted common shares and equivalents 137,188 137,933 Waters Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands) March 31, Dec 31, 2002 2001 (Unaudited) Cash and cash equivalents 250,761 226,798 Accounts receivable 168,014 182,164 Inventories 109,731 102,718 Other current assets 14,372 11,064 Total current assets 542,878 522,744 Property, plant and equipment, net 114,903 114,207 Other assets 273,018 249,960 Total assets 930,799 886,911 Notes payable 1,614 1,140 Accounts payable and accrued expenses 288,697 279,866 Total current liabilities 290,311 281,006 Other liabilities 24,780 24,160 Total liabilities 315,091 305,166 Total equity 615,708 581,745 Total liabilities and equity 930,799 886,911
CONTACT: Waters Corporation Brian Mazar 508-482-2193