Repligen (NASDAQ: RGEN) reported Q1 EPS of $0.32, $0.11 better than the analyst estimate of $0.21. Revenue for the quarter came in at $76.1 million versus the consensus estimate of $71.19 million.

Financial Highlights for the First Quarter 2020

• Revenue increased by 25% year-over-year as reported and 16% organically, to $76.1 million
• GAAP gross margin increased to 58.0%, a year-over-year increase of 220 bps
• Adjusted gross margin (non-GAAP) increased to 58.5%, a year-over-year increase of 250 bps
• GAAP fully diluted EPS increased to $0.18 compared to $0.17 for the first quarter of 2019
• Adjusted fully diluted EPS (non-GAAP) increased to $0.32 compared to $0.26 for the first quarter of 2019

Tony J. Hunt, President and Chief Executive Officer said, “I’m really pleased with our flexibility and performance during the first quarter, while adapting to the challenging economic environment. We exceeded our financial goals, reporting record quarterly revenue and organic growth of 16% backed by strong order demand. The story of the quarter was the continued momentum at gene therapy accounts and strength in our chromatography and filtration franchises, with our proteins business performing above expectations.”

Mr. Hunt added, “The majority of our focus in Q1 and here again in Q2 is on employee health and safety while working together to keep our factories and supply chain fully open and operational during the COVID-19 pandemic. The dedication of our employees has been remarkable, and I especially want to thank those in our manufacturing and customer-facing organizations who have helped deliver on our commitments. While there are clearly uncertainties as to how the year plays out, we remain optimistic about 2020 as we execute on our strategy of bringing new products to market, further developing the gene therapy space and continuing to pace our investments as we expand our manufacturing capacity.”

GUIDANCE:

Repligen sees FY2020 EPS of $1.09-$1.14, versus the consensus of $0.99. Repligen sees FY2020 revenue of $309-319 million, versus the consensus of $307.92 million.

FISCAL YEAR 2020 GUIDANCE:

• We are maintaining our previous guidance for revenue in the range of $309-$319 million, reflecting overall revenue growth of 14%-18% and organic growth of 10%-14%.
• Gross margin is expected to be 56%-57% on both a GAAP and non-GAAP basis, an increase from our previous guidance of 55%-56%.
• Income from operations is expected to be in the range of $52-$56 million on a GAAP basis, an increase from our previous guidance of $50-$54 million. Adjusted (non-GAAP) income from operations is expected to be in the range of $72-$76 million, an increase from our previous guidance of $70-$74 million.
• Net income is expected to be in the range of $34.5-$37.5 million on a GAAP basis, an increase from our previous guidance of $33.5-$36.5 million. Adjusted (non-GAAP) net income is expected to be in the range of $58-$61 million, an increase from our previous guidance of $57-$60 million. Our current guidance reflects a tax rate of 20% on adjusted pre-tax income, an improvement from our previous guidance of 23%.
• Fully diluted GAAP EPS is expected to be in the range of $0.65-$0.70, an increase from our previous guidance of $0.63-$0.68. Adjusted (non-GAAP) fully diluted EPS is expected to be in the range of $1.09-$1.14, an increase from our previous guidance of $1.07-$1.12.

Our non-GAAP guidance for the fiscal year 2020 excludes the following items:

• $4.7 million estimated acquisition and integration expenses; $0.5 million in cost of product revenue, $0.5 million in R&D and $3.7 million in SG&A.
• $15.3 million estimated intangible amortization expense; $0.3 million in cost of product revenue and $15.0 million in G&A.
• $11.0 million of non-cash interest expense (Other income (expense)) related to our convertible debt notes.

Our non-GAAP guidance for the fiscal year 2020 includes:

• An income tax expense of $7.4 million, representing the tax impact of the acquisition and integration of C Technologies, intangible amortization, and non-cash interest expenses.

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