GMO test kits help boost SDI net income
May 01, 2001
by Emily Wilson
GMO test kits help boost SDI net income 270%
Strategic Diagnostics Inc., a provider of analytical test kits for the grain and food industry, said the popularity of its GMO test kits contributed to a 270% increase in net income for the first quarter ended March 31, 2001.
SDI said net income for the quarter was U.S.$478,000, or $0.03 per share — a 270% percent increase over the prior year's net income of $129,000, or $0.01 per share, adjusted to exclude the tax-affected gain on a sale of assets in the first quarter of 2000. Actual net income in the prior year was U.S.$304,000, or $0.02 per share. Revenue for the quarter increased 22.5% to U.S.$7.1 million from $5.8 million in the first quarter of 2000.
SDI said highlights for the quarter included the U.S. Department of Agriculture's verification of its GMO QuickCheck Bt9 Test Kit and the overall acceptance of SDI's tests for detecting StarLink corn. "As a result, an increasing number of production, distribution and food companies are purchasing GMO test kits," SDI said.
"The recall of foods containing StarLink corn is accelerating change in the procedures used throughout the food processing industry," the company said. "This will allow SDI to leverage its customer relationships, including new relationships that have developed as a result of the StarLink corn situation."
Richard C. Birkmeyer, SDI president and chief executive officer, said the company had adopted a new strategy of creating a full package of analytical tools. "Rather than selling individual tests, we now provide a full testing solution, including the procedures and standards needed to obtain successful results," he said. "This strategy will continue to guide our marketing efforts."