Repligen (RGEN) Tops Q1 EPS by 2c, Beats on Revenues; Boosts FY18 EPS/Revenue Outlook

Repligen (NASDAQ: RGEN) reported Q1 EPS of $0.17, $0.02 better than the analyst estimate of $0.15. Revenue for the quarter came in at $44.8 million versus the consensus estimate of $43.93 million.

First Quarter 2018 Snapshot

• Total revenue increased by 46% year-over-year, to a new quarterly record of $44.8 million
• Spectrum product sales contributed $11.7 million, a pro forma increase of 27% year-over-year
• Organic growth for direct-to-customer Filtration and Chromatography products exceeded 20%
• GAAP gross margin was 56.1% and adjusted gross margin was 56.6%, an increase of 110 bps
• GAAP fully-diluted EPS was $0.08 versus $0.09 for the first quarter of 2017
• Adjusted (non-GAAP) EPS increased 11% to $0.17 versus $0.15 for the first quarter of 2017

Financial Guidance for 2018

Our financial guidance for the year 2018 is based on expectations for our existing business and does not include the financial impact of potential new acquisitions or future fluctuations in foreign currency exchange rates. This guidanceincludes the first full year of sales from our acquisition of Spectrum Inc. on August 1, 2017. The guidance below includes revisions to the full year 2018 guidance that we provided on February 22, 2018. Our current expectations for gross margin, operating income and income tax rate guidance are consistent with our previous guidance.

YEAR 2018 GUIDANCE UPDATES:

• Total revenue is projected to be $182-$188 million, an increase from our previous guidance of $180-$186 million. Our updated revenue guidance reflects growth of 29%-33% or 27.5%-31.5% at constant currency. We are anticipating organic growth in the range of 10%-14% excluding the impact of currency fluctuation, consistent with our previous guidance.
• Net income is expected to be $14-$16 million on a GAAP basis, an increase from our previous guidance of $14.0-$15.5 million. Adjusted net income is expected to be $30.5-$32.5 million, an increase from our previous guidance of $30.5-$32.0 million.
• Fully diluted GAAP EPS for the year 2018 is expected to be in the range of $0.32-$0.36, an increase from our previous guidance of $0.31-$0.35. Adjusted fully diluted EPS is expected to be in the range of $0.69-$0.73, an increase from our previous guidance of $0.68-$0.72.

Our non-GAAP guidance for the year 2018 excludes the following items:

• $10.7 million estimated intangible amortization expense; $0.6 million in cost of product revenue and $10.1 million in G&A.
• $2.5 million estimated acquisition and integration expenses associated with the Spectrum acquisition.
• $4.2 million of non-cash interest expense (Other income (expense)) related to our debt financing.

Our non-GAAP guidance for the year 2018 includes:

• An income tax increase of $1.0 million, representing the tax impact of acquisition costs and intangible amortization.

GUIDANCE:

Repligen sees FY2018 revenue of $182-188 million, versus the consensus of $183.48 million.

For earnings history and earnings-related data on Repligen (RGEN) click here.

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