SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 12B-25
NOTIFICATION OF LATE FILING
Commission File Number 1-11181
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(Check one)
[X]Form 10-K and Form 10-KSB [_] Form 11-K [_] Form 20-F
[_] Form 10-Q and Form 10-QSB [_] Form N-SAR
For period ended DECEMBER 31, 2006
-----------------------------------------
[_] Transition Report on Form 10-K and Form 10-KSB
[_] Transition Report on Form 20-F
[_] Transition Report on Form 11-K
[_] Transition Report on Form 10-Q and Form 10-QSB
[_] Transition Report on Form N-SAR
For the transition period ended ___________________________
READ ATTACHED INSTRUCTION SHEET BEFORE PREPARING FORM. PLEASE PRINT OR TYPE.
Nothing in this form shall be construed to imply that the Commission
has verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the item(s) to which the notification relates: ________________________
________________________________________________________________________________
PART I
REGISTRANT INFORMATION
Full name of registrant IRIS INTERNATIONAL, INC.
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Former name if applicable
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Address of principal executive office (STREET AND NUMBER) 9172 ETON AVENUE
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City, state and zip code CHATSWORTH, CALIFORNIA 91311
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PART II
RULE 12B-25(B) AND (C)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed. (Check box if appropriate.)
(a) The reasons described in reasonable detail in Part III of this
form could not be eliminated without unreasonable effort or
expense;
(b) The subject annual report, semi-annual report, transition
report on Form 10-K, 10-KSB, 20-F, 11-K or Form N-SAR, or
portion thereof will be filed on or before the 15th calendar
X day following the prescribed due date; or the subject
quarterly report or transition report on Form 10-Q, 10-QSB, or
portion thereof will be filed on of before the fifth calendar
day following the prescribed due date; and
(c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
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PART III
NARRATIVE
State below in reasonable detail the reasons why Form 10-K, 10-KSB,
11-K, 20-F, 10-Q, 10-QSB, N-SAR or the transition report portion thereof could
not be filed within the prescribed time period. (Attach extra sheets if needed.)
The Registrant's Form 10-K, for the year ended December 31,
2006, could not be filed within the prescribed time period because
certain information and data relating to and necessary for the
completion of the Registrant's audited financial statements could not
be completed within such time period without unreasonable effort or
expense.
PART IV
OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification.
CESAR M. GARCIA (818) 709-1244
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(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d) or
the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act
of 1940 during the preceding 12 months or for such shorter period that the
registrant was required to file such report(s) been filed? If the answer is no,
identify report(s). [X] Yes [_] No
(3) Is it anticipated that any significant change in results of operations
from the corresponding period for the last fiscal year will be reflected by the
earnings statements to be included in the subject report or portion thereof? [X]
Yes [_] No
(4) If so: attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the reasons why a
reasonable estimate of the results cannot be made.
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IRIS INTERNATIONAL, INC.
(Name of Registrant as Specified in Charter)
Has caused this notification to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: MARCH 16, 2006 By: /S/ CESAR M. GARCIA
---------------- -----------------------------------------
Name: Cesar M. Garcia
Title: President and Chief Executive Officer
INSTRUCTION. The form may be signed by an executive officer of the
registrant or by any other duly authorized representative. The name and title of
the person signing the form shall be typed or printed beneath the signature. If
the statement is signed on behalf of the registrant by an authorized
representative (other than an executive officer), evidence of the
representative's authority to sign on behalf of the registrant shall be filed
with the form.
ATTENTION
Intentional misstatements or omissions of fact constitute federal
criminal violations (SEE 18 U.S.C. 1001).
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PART IV - OTHER INFORMATION
(3) EXPLANATION OF ANTICIPATED CHANGE
The Registrant issued a press release on March 7, 2006 announcing
Registrant's results of operations for the year ended December 31, 2006 and
showing a comparison to Registrant's results of operations for the prior year
period. A copy of press release is filed with this Form 12b-25 as Exhibit A.
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EXHIBIT A
NEWS RELEASE
CONTACTS: CESAR GARCIA, CHIEF EXECUTIVE OFFICER
818-709-1244 X 7123
-OR-
RON STABINER, THE WALL STREET GROUP, INC.
212-888-4848
FOR IMMEDIATE RELEASE:
IRIS REPORTS RECORD REVENUES FOR
4TH QUARTER AND FISCAL YEAR 2006
INCREASE IN IQ(R)200 SALES CONTRIBUTES TO HIGHEST SINGLE-QUARTER
REVENUES IN COMPANY HISTORY
CHATSWORTH, CALIF., MARCH 7, 2006 - IRIS INTERNATIONAL, INC. (NASDAQ: IRIS)
today announced record fourth-quarter 2006 revenue of $19.9 million, an increase
of 16% over revenue of $17.2 million in the fourth quarter of 2005, and record
full-year revenue of $70.6 million for the year ended Dec. 31, 2006, a 13%
increase over revenue of $62.8 million for fiscal 2005.
"We are pleased with once again achieving record sales for the fourth quarter
and full year with 120 iQ(R)200 analyzers sold in the fourth quarter alone,
resulting in the single highest revenue quarter in the Company's history,"
stated IRIS President and Chief Executive Officer Cesar Garcia. "With the
reserves, special items and certain large charges taken during 2006 now behind
us, we anticipate continued strong iQ(R)200 units sales and, with more than
1,200 units now in the field and growing, we look forward to an acceleration of
recurring high margin consumables and service revenue and profit in 2007,
particularly as we get into the second half of the year," he added.
2006 HIGHLIGHTS AND KEY MILESTONES:
o RECORD Q4 REVENUE OF $19.9 MILLION, AN INCREASE OF 16%
COMPARED WITH COMPARABLE YEAR-AGO PERIOD; HIGHEST SINGLE
REVENUE QUARTER IN COMPANY HISTORY.
o Q4 EPS OF $0.10 ON A GAAP BASIS AFTER INCLUDING THE EFFECT ON
EPS OF $0.03 FROM SPECIAL ITEMS, AND CERTAIN LARGE CHARGES
PLUS FAS 123R EXPENSE.
o 120 IQ(R)200 UNITS SOLD IN Q4 WITH MORE THAN 1,200 SOLD TO
DATE.
o Q4 AND 2ND HALF OF 2006 DOMESTIC SALES GROWTH REPRESENTS
RECORD PERCENTAGE OF NEW BUSINESS.
o LARGER NUMBER OF HIGH-THROUGHPUT IQ(R)200 SPRINT UNITS SOLD IN
Q4 AND 2ND HALF OF '06 THAN IN ANY COMPARABLE PERIOD, WITH
INCREASING ACCEPTANCE AMONG CLINICAL REFERENCE LABORATORIES
AND LARGE HEALTHCARE INSTITUTIONS.
o HIGH VOLUME OF DOMESTIC IQ(R)200 INSTALLS IN 2ND HALF COMBINED
WITH REINSTITUTED CONSUMABLES SALES FROM TURKEY EXPECTED TO
RESULT IN ACCELERATING CONSUMABLES REVENUE IN 2007; SERVICE
REVENUE ALSO EXPECTED TO EXPERIENCE GROWTH AS LARGE NUMBER OF
UNITS COME OFF WARRANTY.
o LAUNCHED ICHEM 100 SEMI-AUTOMATED CHEMISTRY ANALYZER AND
IQ(R)200 MARKET SEGMENT INITIATIVE.
o PRODUCT DEVELOPMENT ACTIVITIES FOR NEW AUTOMATED URINE
CHEMISTRY ANALYZER PROGRESSING PER PLAN.
o COMPLETED DEVELOPMENT ON ULTRA-SENSITIVE PSA TEST FOR FDA
510(K) SUBMISSION SUBSEQUENTLY FILED ON FEB. 7, 2007; OUR
FIRST MAJOR NADIA (NUCLEIC ACID DETECTION IMMUNOASSAY) PRODUCT
TO EMERGE FROM APRIL 2006 ACQUISITION OF LEUCADIA.
(MORE)
o FINISHED YEAR WITH $23.2 MILLION IN CASH, CASH EQUIVALENTS AND
SHORT-TERM CASH INVESTMENTS, AN INCREASE OF $4.1 MILLION OVER
2005 DESPITE INVESTING APPROXIMATELY $6 MILLION FOR LEUCADIA
ACQUISITION AND EXPANSION OF FACILITIES; COMPANY HAS DEBT-FREE
BALANCE SHEET.
o NET OPERATING LOSS (NOLS) CARRY-FORWARD OF APPROXIMATELY $10.9
MILLION AVAILABLE TO OFFSET TAXES.
Net income for the fourth quarter of 2006 was $1.9 million, or $0.10 per diluted
share, after the effect of $0.5 million, or $0.03 per share, of special and
certain large charges and FAS 123R expense. This compares with net income of
$1.7 million, or $0.10 per diluted share, for the same period of 2005. Diluted
average shares outstanding for the three months ended Dec. 31, 2006 and 2005,
were 18.7 million and 18.2 million, respectively.
For the full year ended Dec. 31, 2006, IRIS incurred a net loss of $176,000, or
$0.01 per diluted share, after the effect of $6.9 million, or $0.38 per share,
of special charges related to the Leucadia acquisition and certain large charges
and FAS123R charges. This compares with net income of $6.1 million, or $0.35 per
diluted share, for the full year ended Dec. 31, 2005. Diluted average shares
outstanding for years ended 2006 and 2005, were 17.9 million and 17.7 million,
respectively.
In spite of investing $3.6 million in cash for the acquisition of Leucadia
Technologies and $2.5 million to expand the Company's manufacturing plant and
offices in its Chatsworth, Calif., headquarters, IRIS generated an additional
$4.1 million in cash in 2006 finishing the year with $23.2 million in cash, cash
equivalents and short-term cash investments, compared with $19.1 million at the
end of 2005. The Company has a debt-free balance sheet and $10.9 million in
NOLs, plus additional tax credits of $2.9 million, that can be applied to offset
future income tax obligations.
"The year 2006 was a period of transition and substantial accomplishments for
IRIS. We significantly bolstered our domestic sales effort, introduced our new
iQ(R)200 market segment initiative and released the iChem100 semi-automated
chemistry analyzer, all while investing heavily in research and development and
expanding infrastructure in facilities and customer support systems. These
efforts have resulted in a dramatic turnaround in domestic sales growth which,
for the second consecutive quarter, represented the highest percentage of new
business aided, in part, by large multi-site, multi-unit orders awarded by major
laboratories and hospital chains in the second half of 2006. We believe IRIS has
made great strides in penetrating this market segment with its high-throughput
iQ(R)200 SPRINT units and has a strong domestic pipeline of these types of sales
going into 2007. We anticipate that our Consumables and Service revenues will
accelerate in 2007 as a result of the increased installed base, the launch of
our new urine chemistry products and a reduction in the percentage of systems
under warranty, which do not generate service revenue," Mr. Garcia said.
IVD instrument revenue for the fourth quarter of 2006 increased 20% when
compared with the fourth quarter of 2005, and 23% when compared with the
immediately preceding third quarter of 2006. There were 120 iQ(R)200 analyzer
units shipped during the fourth quarter of 2006 compared with 112 units for the
fourth quarter of 2005, bringing the number of iQ(R)200 units sold to more than
1,200 since being launched in August 2003.
IVD Consumables and Service revenue for the fourth quarter of 2006 grew 13% when
compared with the fourth quarter of 2005. For the year ended Dec. 31, 2006, IVD
Consumables and Service revenue increased 18% when compared with the 2005 fiscal
year despite the high percentage of instruments under warranty which do not
generate service revenues. Sample Processing (formerly StatSpin) revenue for the
fourth quarter grew 9% over the fourth quarter of 2005, and for the full year
2006 increased 17% compared with the full year 2005.
(MORE)
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Gross profit margin was 49% for the fourth quarter of 2006 versus 50% for the
same quarter of 2005. Gross profit margin for the year ended Dec. 31, 2006 was
49% compared with 50% for the full year 2005. Gross profit margins for 2006 were
affected by reserves for sales returns, increases in warranty and inventory
reserves, and inventory write-downs totaling $0.7 million, as well as
approximately $1.0 million in excess capacity related to the urine chemistry
strip manufacturing operation based in Marburg, Germany. The consumable and
service gross margin for 2006 would have been 3% higher had the Company not
incurred the $1.0 million gross profit reduction resulting from under-absorbed
overhead in the strip manufacturing facility acquired in June 2005 from Quidel,
Inc. The incremental stock based compensation in cost of goods sold attributable
to the adoption of FAS 123R was $0.2 million in 2006.
Operating expenses were $7.7 million for the fourth quarter of 2006, compared
with $6.5 million for the prior year period, and included $0.7 million of
incremental research and development expenses for the Company's new molecular
diagnostics product lines, and $0.5 million of increased general and
administrative expenses. Operating expenses for the full year 2006 were $33.5
million including special and certain large charges and stock-based compensation
expense related to FAS 123R which amounted to $7.6 million, compared with
operating expenses of $22.2 million for the full year 2005.
Adjusted Research & Development expense for the year ended Dec. 31, 2006 was
$7.9 million, or 11% of revenue. Research and Development expense for the same
period was $13.1 million before excluding the effect of the special write-off of
$5.2 million for in-process R&D related to the Leucadia acquisition.
"We are pleased that our R&D spending is below budget without adversely
affecting our product development timelines. Our urine chemistry program is on
schedule and our R&D initiatives are yielding significant results particularly
with regard to our NADIA platform development. Our 510(k) application to the FDA
for our NADIA-based ultra-sensitive Prostate-Specific Antigen (PSA) test is the
first of a number of significant diagnostic tests to emerge from the April 2006
acquisition of Leucadia Technologies. Our Iris Diagnostics Division has also
made excellent progress toward the development of our proprietary,
fully-automated chemistry analyzer and is expected to submit a 510(k)
application to the FDA in the second quarter of 2007. Both products are expected
to be launched late this year," said Mr. Garcia.
COMPANY OUTLOOK
The Company is issuing guidance for 2007, anticipating revenue for the year to
be in range of $81.0 - $83.0 million and fully diluted earnings per share of at
least $0.40, INCLUDING the effect of incremental stock based compensation
expense related to FAS 123R, which is expected to be approximately $0.05 per
share. Research and Development expense is expected to be approximately 13% of
revenues.
CONFERENCE CALL
The Company will host a conference call today at 4:30 p.m. Eastern time, 1:30
p.m. Pacific time. To participate, dial 1-800-289-0533 approximately 10 minutes
before the conference call is scheduled to begin. Hold for the operator and
reference the IRIS International conference call. International callers should
dial 913-981-5525. The conference call may also be accessed by means of a live
audio Web cast on the Company's Web site at www.proiris.com, or at
www.vcall.com, the Web cast service provider. The conference audio cast will
also be available for replay on both Web sites for 30 days from the date of the
broadcast.
(MORE)
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USE OF NON-GAAP MEASURES OF FINANCIAL PERFORMANCE
To supplement IRIS International's financial statements presented in accordance
with accounting principles generally accepted in the United States of America
(GAAP), the Company provides certain non-GAAP measures of financial performance.
The non-GAAP measures used in this release are historical adjusted net income
and adjusted net income per diluted share, and historical adjusted research and
development expense as a percentage of projected revenues. Adjusted net income
reflects net income (loss) excluding the effect of incremental stock based
compensation expense related to the adoption of FAS 123R, special large charges
relating to the write-off of research and development assets acquired in the
purchase of Leucadia Technologies, and certain large items including a bad debt
expense due to a default by the purchaser of certain of the Company's equipment
lease agreements and severance, recruiting and relocation expenses relating to
the change in company executives. Adjusted net income per diluted share is
adjusted net income divided by the diluted shares outstanding. Adjusted research
and development expense as a percentage of revenues reflects research and
development expense excluding special charges relating to the write-off of
research and development assets acquired in the purchase of Leucadia
Technologies and incremental stock based compensation expense related to the
adoption of FAS 123R attributable to R&D personnel. The Company calculates and
discloses these non-GAAP measures because it believes that these measures may
provide additional information that may be relevant in understanding the
financial results without regard to the effect of equity-based compensation
expense related to the adoption of FAS 123R, which expense was not included in
the comparable 2005 periods, and items that are special or not considered
recurring.
The Company has included in this press release reconciliation of these non-GAAP
financial measures to the most directly comparable measures of financial
performance computed in accordance with GAAP, including the attached
supplementary information tables that reconcile adjusted net income and adjusted
net income per diluted share for the fourth quarter and fiscal year ended
December 31,2006.
Investors should recognize that these non-GAAP measures may not be comparable to
similarly titled measures of other companies and that the measures presented are
not a substitute or alternative for measures of financial performance determined
in accordance with GAAP.
SAFE HARBOR PROVISION
This news release contains forward-looking statements made in reliance upon the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, the Company's views
on future financial performance, market growth, capital requirements, new
product introductions and acquisitions, and are generally identified by phrases
such as "thinks," "anticipates," "believes," "estimates," "expects," "intends,"
"plans," and similar words. Forward-looking statements are not guarantees of
future performance and are inherently subject to uncertainties and other factors
which could cause actual results to differ materially from the forward-looking
statement. These statements are based upon, among other things, assumptions made
by, and information currently available to, management, including management's
own knowledge and assessment of the Company's industry, R&D initiatives,
competition and capital requirements. Other factors and uncertainties that could
affect the Company's forward-looking statements include, among other things, the
following: identification of feasible new product initiatives, management of R&D
efforts and the resulting successful development of new products and product
platforms; acceptance by customers of the Company's products; integration of
acquired businesses; substantial expansion of international sales; reliance on
key suppliers; the potential need for changes in long-term strategy in response
to future developments; future advances in diagnostic testing methods and
procedures; potential changes in government regulations and healthcare policies,
both of which could adversely affect the economics of the diagnostic testing
procedures automated by the Company's products; rapid technological change in
the microelectronics and software industries; and competitive factors, including
pricing pressures and the introduction by others of new products with similar or
better functionality than our products. These and other risks are more fully
described in the Company's filings with the Securities and Exchange Commission,
including the Company's most recently filed Annual Report on Form 10-K and
Quarterly Report on Form 10-Q, which should be read in conjunction herewith for
a further discussion of important factors that could cause actual results to
differ materially from those in the forward-looking statements. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
(TABLES FOLLOW)
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IRIS INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, 2006 unaudited)
ASSETS At December 31,
---------------------
2006 2005
-------- --------
Current assets:
Cash and cash equivalents ............................ $ 23,110 $ 3,169
Marketable securities available for sale ............. 132 15,976
Accounts receivable, net of allowance for doubtful
accounts and sales returns of $601 and $288 ....... 13,218 11,874
Inventories, net ..................................... 6,918 7,590
Prepaid expenses and other current assets ............ 651 1,132
Investment in sales-type leases ...................... 2,170 1,455
Deferred tax asset ................................... 2,831 2,792
-------- --------
Total current assets .............................. 49,030 43,988
Property and equipment, at cost, net ................. 6,627 4,076
Goodwill ............................................. 2,450 189
Core Technology, net ................................. 1,723 --
Software development costs, net of accumulated
amortization of $1,729 and $1,169 ................. 1,387 1,570
Deferred tax asset ................................... 5,623 7,237
Inventories - long term portion ...................... 440 632
Investment in sales-type leases ...................... 6,699 5,841
Other assets ......................................... 401 396
-------- --------
Total assets ......................................... $ 74,380 $ 63,929
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ..................................... $ 3,809 $ 4,464
Accrued expenses ..................................... 6,391 4,188
Deferred service contract revenue .................... 1,385 1,457
-------- --------
Total current liabilities ....................... 11,585 10,109
Deferred service contract revenue, long term ......... 23 51
-------- --------
Total liabilities ............................... 11,608 10,160
Commitments and contingencies
Shareholders' equity:
Common stock, $.01 par value
Authorized: 50 million shares; issued and
outstanding: 18,046 shares and 17,222 shares ..... 180 172
Additional paid-in capital ........................... 79,433 70,856
Unearned compensation ................................ -- (546)
Translation adjustment ............................... 48 --
Accumulated deficit .................................. (16,889) (16,713)
-------- --------
Total shareholders' equity ...................... 62,772 53,769
-------- --------
Total liabilities and shareholders' equity ........... $ 74,380 $ 63,929
======== ========
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IRIS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts
2006 unaudited)
For the Year ended December 31,
--------------------------------
2006 2005 2004
-------- -------- --------
Sales of IVD instruments ................................. $ 29,059 $ 27,542 $ 14,845
Sales of IVD consumables and service ..................... 30,443 25,708 20,126
Sales of sample processing instruments and supplies ...... 11,134 9,530 8,343
Royalty and license revenues ............................. -- -- 336
-------- -------- --------
Total revenues ...................................... 70,636 62,780 43,650
-------- -------- --------
Cost of goods - IVD instruments .......................... 15,862 15,456 10,092
Cost of goods - IVD consumable and supplies .............. 14,373 11,185 7,982
Cost of goods - sample processing instruments and supplies 5,815 4,994 4,185
-------- -------- --------
Total cost of goods sold ............................ 36,050 31,635 22,259
-------- -------- --------
Gross profit ............................................. 34,586 31,145 21,391
-------- -------- --------
Marketing and selling .................................... 10,584 10,026 7,165
General and administrative ............................... 9,868 7,141 5,841
Research and development, net ............................ 13,086 5,037 3,920
-------- -------- --------
Total operating expenses ........................... 33,538 22,204 16,926
-------- -------- --------
Operating income ......................................... 1,048 8,941 4,465
Other income (expense):
Interest income ....................................... 1,068 607 111
Interest expense ...................................... (18) (15) (243)
Other income (expense) ................................ 39 13 (534)
-------- -------- --------
Income before provision for income taxes ................. 2,137 9,546 3,799
Provision for income taxes ............................... 2,313 3,415 1,519
-------- -------- --------
Net income (loss) ........................................ $ (176) $ 6,131 $ 2,280
======== ======== ========
Basic net income per share ............................... $ (0.01) $ 0.37 $ 0.16
======== ======== ========
Diluted net income per share ............................. $ (0.01) $ 0.35 $ 0.14
======== ======== ========
Weighted average number of
common shares outstanding - basic ..................... 17,855 16,758 14,459
======== ======== ========
Weighted average number of
common shares outstanding - diluted .................... 17,855 17,654 15,818
======== ======== ========
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IRIS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
SUPPLEMENTAL INFORMATION
(unaudited - in thousands, except EPS)
For the three months ended For the twelve months ended
31-Dec-06 31-Dec-06
------------------------------- --------------------------------
Adjust- Adjust-
GAAP ments Non-GAAP GAAP ments Non-GAAP
-------- -------- -------- -------- -------- --------
Net revenues .. $ 19,915 $ -- $ 19,915 $ 70,636 $ -- $ 70,636
Cost of goods
sold .......... 10,169 (56) 10,113 36,050 (218) 35,832
-------- -------- -------- -------- -------- --------
Gross margin .. 9,746 56 9,802 34,586 218 34,804
Total operating
expenses ...... 7,703 (778) 6,925 33,538 (7,623) 25,915
-------- -------- -------- -------- -------- --------
Operating
income (loss) . 2,043 834 2,877 1,048 7,841 8,889
Other income
(expense), net 299 -- 299 1,089 -- 1,089
-------- -------- -------- -------- -------- --------
Income (loss)
before income
taxes ......... 2,342 834 3,176 2,137 7,841 9,978
Income taxes
provision
(benefit) ..... 473 310 783 2,313 984 3,297
-------- -------- -------- -------- -------- --------
Net income
(loss) ........ $ 1,869 $ 524 $ 2,393 $ (176) $ 6,857 $ 6,681
======== ======== ======== ======== ======== ========
Basic net
income (loss)
per share ..... $ 0.10 $ 0.03 $ 0.13 $ (0.01) $ 0.38 $ 0.37
(MORE)
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IRIS INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
SUPPLEMENTAL INFORMATION - ADJUSTMENTS
(unaudited - in thousands)
For the Three Months Ended December 31, 2006:
Cost of Operating Income Net Basic Diluted
Adjustments Sales Expenses Taxes Income EPS EPS
------------------- ------- ------- ------- ------- ------- -------
(1) In-Process Research $ -- $ -- $ -- $ -- $ -- $ --
and Development
Expense
(2) Bad Debt Expense .. -- -- -- -- -- --
(3) CFO Transition
Expense ........... -- (275) 102 173 0.01 0.01
(4) Incremental Stock
Based Compensation
Expense ........... (56) (504) 207 353 0.02 0.02
------- ------- ------- ------- ------- -------
$ (56) $ (779) $ 309 $ 526 $ 0.03 $ 0.03
======= ======= ======= ======= ======= =======
For the Twelve Months Ended December 31, 2006:
Cost of Operating Income Net Basic Diluted
Adjustments Sales Expenses Taxes Income EPS EPS
------------------- ------- ------- ------- ------- ------- -------
(1) In-Process Research $ -- (5,180) $ -- $ 5,180 $ 0.29 $ 0.29
and Development
Expense
(2) Bad Debt Expense .. -- (350) 129 221 0.01 0.01
(3) CFO Transition
Expense ........... -- (743) 275 468 0.03 0.03
(4) Incremental Stock
Based Compensation
Expense ........... (218) (1,350) 580 988 0.06 0.06
------- ------- ------- ------- ------- -------
$ (218) (7,623) $ 984 $ 6,857 $ 0.38 $ 0.38
======= ======= ======= ======= ======= =======
(1) Represents the write-off of In-Process Research and Development assets
acquired in the purchase of Leucadia Technologies.
(2) Represents bad debt expense attributable to the default by an assignee
of Company lease agreements.
(3) Represents severance, recruiting and relocation expenses relating to the
change in the Company's CFO.
(4) Represents incremental stock based compensation expense attributable to
the adoption of FAS 123R.
###
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