Alere, Inc. (ALR) Q1 2012 Earnings Conference Call April 30, 2012, 08:30 a.m. ET Executives Doug Guarino - Director, Corporate Relations Ron Zwanziger - Chairman and CEO David Teitel - CFO Analysts Dan Leonard - Leerink Swann John Putnam - Capstone Investments Greg Simpson - Wunderlich Securities Eric Criscuolo - Mizuho Securities Zarak Khurshid - Wedbush Securities Jeff Frelick - Canaccord Genuity Jeff - Goldman Sachs Nicholas Jansen - Raymond James Presentation Operator
Our company undertakes no obligation to update forward-looking statements. Additionally, please note that during this call, we may discuss non-GAAP financial measures. For each non-GAAP financial measure discussed, the presentation of the most directly comparable GAAP financial measure and a reconciliation of the differences between the non-GAAP financial measure discussed and the most directly comparable GAAP financial measure is available on the company’s website at Alere.com.And with that let me turn the call over to Alere Chairman and CEO, Ron Zwanziger. Ron? Ron Zwanziger Thanks Doug and good morning everyone. We are pleased to report a strong first quarter results highlighted by strength in both revenues and earnings, organic growth and our professional diagnostic business was particularly good at 6.9%. New product sales continue to increase achieving 13.7 million in the first quarter with particular traction in Europe and Asia. We expect this trend to continue and anticipate that our new platform achieves increased medical adoption, their underlying consumable sales will drive and expanding organic growth rate over the next several years. Another favorable trend in the first quarter was improved predictability and stabilization of our Health Management unit which posted a sequential increase in revenues for the first time since the third quarter of 2010, while institutions predict the consisting growth trend in Health Management we are seeing increased customer interest of added business in the first quarter. Therefore, we are cautiously optimistic that revenues in this segment will at least remain flat during the rest of the year and notable improvement over 2011. Although we previously reported challenging fourth quarter in Europe and a higher risk in the region entering 2012, European sales in the first quarter held up relatively well although margins are sharply lower relative to year ago. We continue to watch trends in Europe and expect issues to arise as a result of budgetary problem in many countries. The Asia Pacific region, however, continue to perform well primarily driven by growth of higher margins, cardiology products in China, over the past few years we have had some step backs in approval delays there, which negatively impacted our cardiology business and the resumption of product sales growth there represents a promising development.
Sales were excellent for the third consecutive quarter of more than 50% from the first quarter of last year; this trend was driven primarily by high sales of cardiology and Infectious Disease diagnostic including a strong flu season.Overall, Asia has performed very well for us over the past year when we expect it to continue through the remainder of the year. Two of our recently acquired diabetes related companies Axis-Shield and Arriva are in the price of being integrated. We are continuing to review opportunities in the area with the intend of establishing novel approaches to the management of individuals with diabetes which will help, which we expect will yield better outcomes from both the individual and the payer, future M&A activities likely to be heavily weighted towards this area and secondarily towards our toxicology business which is performing very well. Read the rest of this transcript for free on seekingalpha.com