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LIFE TECHNOLOGIES, INC., ANNOUNCES RECORD SALES AND EARNINGS FROM OPERATIONS FOR FIRST QUARTER OF 1993

 GAITHERSBURG, Md., April 14 /PRNewswire/ -- Life Technologies, Inc. (NASDAQ-NMS: LTEK), reported record quarterly net sales of $51.3 million for the first quarter of 1993, an increase of $2.8 million, or 6 percent, over the comparable quarter of 1992. Operating income of $6.7 million for the quarter ended March 31, 1993, was also a record for the company and represented a 10 percent increase over the first quarter of 1992. First quarter 1993 net income of $4.4 million represented a 15 percent increase over net income of $3.8 million for the same period a year earlier. Earnings per share of 29 cents in the first quarter of 1993 were 16 percent greater than the 25 cents per share reported in the prior year's first quarter.
 Sales of products other than fetal bovine serum (FBS) increased by $3.9 million, or 10 percent, when comparing the first quarter of 1993 with the same period in 1992. First quarter 1993 FBS sales were $0.5 million higher than in the first quarter of 1992. Higher unit sales of FBS increased first quarter 1993 net sales by $0.7 million while lower unit selling prices reduced net sales $0.2 million when compared with the first quarter of 1992. FBS sales represented 19 percent of net sales in the first quarter of both 1993 and 1992. The effect of changes in currency exchange rates lowered first quarter 1993 sales by $1.6 million, or 3 percent, when compared with the first quarter of 1992. First quarter 1992 revenues included $0.1 million of royalty income with no royalty income reported in the comparable period of 1993.
 Gross margins were 51.2 percent of net sales in the first quarter of 1993 compared with 51.0 percent in the first quarter of 1992. FBS gross margins were higher in the first quarter of 1993 than in the comparable quarter a year earlier. The increase in FBS gross margins resulted from FBS unit costs decreasing at a greater rate than FBS unit selling prices. The company reduced its FBS LIFO reserve $0.5 million in the first three months of 1993 compared with a decrease in the reserve of $0.2 million in the same period last year as a result of decreasing FBS costs. Marketing and administrative expenses were 31.3 percent of net sales in the first quarter of 1993 and the first quarter of 1992. Research and development (R&D) expenses were $3.5 million in the first quarter of 1993 compared with $3.6 million for the first quarter of 1992. First quarter 1992 R&D expense included almost $0.4 million of costs to acquire a new development phase technology. Excluding the effect of this technology investment in 1992, R&D spending increased 7 percent in the first quarter of 1993 when compared with the first quarter of 1992.
 Operating income of $6.7 million in the first quarter of 1993 was 10 percent more than the $6.1 million reported in the first quarter a year earlier. Changes in currency exchange rates used to translate non-U.S. earnings to U.S. dollars reduced first quarter 1993 operating income by $0.5 million when compared with the first quarter of 1992. The effect on earnings of other non-operating items in the first quarter of 1993 compared favorably to the first quarter of 1992, principally due


to improved profitability of the company's joint venture in Japan. The effective tax rate was 36 percent in the first quarter of 1993 compared with 37 percent in last year's first quarter. The company adopted SFAS No.109, Accounting for Income Taxes, in the first quarter of 1993. The impact of adopting SFAS No. 109 was not significant to the company's earnings.
 Life Technologies, Inc.'s President and Chief Executive Officer, Dr. J. Stark Thompson, stated: "We are very pleased to have attained record net sales and operating income in the first quarter of 1993. We expect moderate sales growth in the coming year as a result of the uncertainty surrounding governmental health care reform and deficit reduction proposals. We remain committed to working closely with our customers to provide high value products and services."
 Life Technologies, Inc., develops, manufactures and supplies more than 2,000 products used principally in life sciences research and commercial manufacture of genetically engineered products. The company is a leading supplier of sera and other cell growth media, as well as enzymes and other biological products necessary for recombinant DNA procedures.
 LIFE TECHNOLOGIES, INC.
 Condensed Consolidated Balance Sheet
 (amounts in thousands)
 March 31, Dec. 31,
 1993 1992
 ASSETS
 Current assets:
 Cash and short-term investments $ 2,925 $ 7,652
 Accounts receivable, net 33,948 30,301
 Inventories:
 Materials and supplies 9,952 8,769
 In process and finished 37,288 36,908
 LIFO reserve (4,615) (5,115)
 Total 42,625 40,562
 Prepaid expenses 1,558 1,952
 Current deferred tax assets 1,602 --
 Total current assets 82,658 80,467
 Property, plant and equipment 61,238 59,658
 Less accumulated depreciation (21,477) (20,453)
 Total 39,761 39,205
 Investments and other assets 5,345 4,836
 Excess of cost over assets of
 businesses acquired, net 5,479 5,541
 Total assets $ 133,243 $ 130,049
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 13,164 $ 14,177
 Dividends payable 747 746
 Income taxes 5,809 4,125
 Accrued liabilities and expenses 10,390 10,891
 Total current liabilities 30,110 29,939
 Deferred items 3,449 3,430
 Stockholders' equity:
 Common stock 149 149
 Additional paid-in capital 41,930 41,777
 Retained earnings 64,016 60,400
 Currency exchange effects (6,411) (5,646)
 Total stockholders' equity 99,684 96,680
 Total liabilities and
 stockholders' equity $ 133,243 $ 130,049
 Amounts as of March 31, 1993 are unaudited.
 Consolidated Statement of Income
 (amounts in thousands, except per share data)
 Three months ended
 March 31,
 1993 1992 Change
 Revenues:
 Net sales $51,307 $48,547 +6 percent
 Net royalties 0 102 --
 Total 51,307 48,649 +5 percent
 Operating expenses:
 Cost of sales 25,061 23,778 +5 percent
 Marketing & administrative 16,051 15,190 +6 percent
 Research & development 3,515 3,627 -3 percent
 Total 44,627 42,595 +5 percent
 Operating income 6,680 6,054 +10 percent
 Other income (expense):
 Investment income 64 83 -23 percent
 Interest expense (22) (22) --
 Other, net 94 (90) --
 Total 136 (29) --
 Income before income taxes 6,816 6,025 +13 percent
 Income taxes 2,454 2,229 +10 percent
 Net income $4,362 $3,796 +15 percent
 Average shares outstanding 15,144 15,036 +1 percent
 Primary net income per share $0.29 $0.25 +16 percent
 Dividends per share $0.05 $0.05 --
 Amounts are unaudited.
 -0- 4/14/93
 /CONTACT: Joseph C. Stokes Jr. or C. Eric Winzer of Life Technologies, 301-840-8000/
 (LTEK)


CO: Life Technologies, Inc. ST: Maryland IN: MTC SU: ERN

TW -- DC013 -- 5690 04/14/93 11:46 EDT
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Date:Apr 14, 1993
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