Repligen (NASDAQ: RGEN) reported Q4 EPS of $0.20, $0.08 better than the analyst estimate of $0.12. Revenue for the quarter came in at $41.6 million versus the consensus estimate of $41.15 million.

Fourth Quarter 2017 Snapshot

• Total revenue increased by 63% year-over-year, to $41.6 million
• Spectrum product sales contributed $11.8 million, a pro forma increase of 19% year-over-year
• GAAP gross margin was 54% and adjusted gross margin expanded by 380 bps to 57.1%
• GAAP fully-diluted EPS increased 88% to $0.27, including the positive $0.22 impact of tax reform, versus $0.15 for the fourth quarter of 2016
• Adjusted (non-GAAP) EPS increased 116% to $0.20 versus $0.09 for the fourth quarter of 2016

Financial Guidance for 2018

Based on our current projections, we are providing financial guidance for the year 2018. This guidance 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.

Our guidance for 2018 includes the first full year of sales following our acquisition of Spectrum on August 1, 2017.

YEAR 2018 GUIDANCE:

• Total revenue is projected to be $180-$186 million, reflecting growth of 27%-32% or 26%-31% at constant currency. This includes an organic growth projection of 10%-14% before any impact of foreign currency.
• Gross margin is expected to be 55.5%-56.5% on a GAAP basis, and adjusted gross margin is expected to be 56%-57%.
• Income from operations is expected to be $26.5-$28.5 million on a GAAP basis, and adjusted income from operations is expected to be $40-$42 million.
• We expect an income tax rate of approximately 28% on a GAAP basis and an income tax rate of approximately 19% on a non-GAAP basis.
• Net income is expected to be $14-$15.5 million on a GAAP basis, and adjusted net income is expected to be $30.5-$32 million.
• Fully diluted GAAP EPS for the year 2018 is expected to be in the range of $0.31-$0.35 and adjusted EPS is expected to be in the range 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 goods and $10.1 million in G&A.
• $2.7 million estimated acquisition and integration expenses (G&A) 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 $1.2 million, representing the tax impact of acquisition costs and intangible amortization.

GUIDANCE:

Repligen sees FY2018 EPS of $0.68-$0.72, versus the consensus of $0.72. Repligen sees FY2018 revenue of $180-186 million, versus the consensus of $184.2 million.

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