Bio-Reference Laboratories, Inc. F2Q08 (Qtr End 4/30/08) Earnings Call Transcript

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2008-06-05 16:05:27.0

Tags: Bio-Reference Laboratories Inc.

Question-and-Answer Session

Operator

(Instructions) Our first question comes from the line of Art Henderson with Jeffries & Company.

Art Henderson - Jeffries & Company

A couple of quick questions. As we think about the next couple of quarters and, Marc, I know you don’t give quarterly guidance, but in terms of your ongoing investments which clearly seem to be the right move, how should we think about the expenses for new sales, personnel, and marketing expenses and R&D over the next few quarters? Is it going to be similar to what we saw this quarter?

Dr. Marc Grodman

It’s going to be similar to where we are for the current quarter. I don’t expect them to be higher. Some of the new products have been rolling out. We will be hinging on demand from the market place and expect to go in and have matched revenues for those areas, and timing of that will be unclear, but we think that the R&D efforts will be where they are now without the offset of revenues. In terms of sales and marketing, they will be at these levels. The only caveat to that is we have an area and probably the most exciting part of clinical laboratory testing business which is genetic testing. We’ve demonstrated an area and have a unit which is increasing growth by 80%. We are committing to go in adding sales and marketing personnel to that, so that would be an increase, not in the same scale of GenPath, of course, but other than that, I think that the numbers in the areas we are going to hold going forward.

Art Henderson - Jeffries & Company

So you have 40 sales personnel in GenPath right now. Is that where you want to be for a while?

Dr. Marc Grodman

That is where we want to be. What we’ve built out GenPath to over the last year is where we wanted to be. A good chunk of this is now over the last year, but most of it occurred at the end of last fiscal year and at the end of the first quarter. We are now where we think you need to be and want to be.

Art Henderson - Jeffries & Company

Okay, and then on GeneDx, can you go over what you have and what you want to have there in terms of sales folks?

Dr. Marc Grodman

 

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