Celera 4Q profit drops as licensing revenue falls
Celera Corp. said Friday its fourth-quarter net income sank 31 percent, as the genetic diagnostics company saw drops in licensing and products revenue.
The Alameda, Calif., company earned $2.5 million, or 3 cents per share, in the three months that ended Dec. 25. That compares with net income of $3.6 million, or 4 cents per share, in the final quarter of 2009. Excluding some one-time items, Celera posted an adjusted loss of a penny per share.
Revenue fell 11 percent to $34.9 million.
Celera also announced on Friday that it agreed to be acquired by Quest Diagnostics Inc. in a $671 million deal that may close by the end of April. Quest will pay $8 per share, and the deal price includes Celera's cash and short-term investments, which total $327 million.
Celera shares jumped 30 percent, or $1.90, to $8.17 in morning trading Friday.
Celera focuses on sequencing the human genome and identifying links between genetic variations and disease states. It said in the fourth quarter its corporate revenue fell to $2.1 million from $6.7 million in 2009's fourth quarter due to lower licensing revenue. Products revenue slumped to $10.6 million from $11.3 million.
The company also recorded a $5.5 million gain on investments in the final quarter of 2010.
Celera said it had to restate previous financial statements, including those from each 2009 quarter, due to accounting errors.
For the full year, Celera posted a loss of $24.6 million, or 30 cents per share, on revenue of $128.2 million.