Millipore Corp. Q1 2008 Earnings Call Transcript

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2008-04-30 19:49:07.0

Tags: Millipore Corp.

Question-and-Answer Session

[Operator Instructions]. Our first question comes the line of Tycho Peterson with JP Morgan.

Tycho Peterson - JP Morgan

Hey good afternoon.

Martin D. Madaus, Ph.D - Chairman, President, Chief Executive Officer

HI Tycho.

Tycho Peterson - JP Morgan

Maybe just following up on your comment a moment ago, Charlie about the maybe rationalizing R&D a little bit, can you give us a sense as to how you are seeing should we think about the spend over the course of the year. I mean is there broader R&D rationalization after happening here or is it, just kind of a short term anomaly that you are working for a couple of quarters. I guess the question is what's the reasonable run rate for the year?

Unidentified Company Representative

Yeah, I would say that you can't draw a reasonable run rate conclusion from Q1 couple of factors there. Q1 of last year was an especially high quarter for R&D spend associated with some of the products that are now launching in the Lab Water business so that just affect the comparison little bit. And then also in the Q1 of this year we have managed a little bit of discretionary spending from a timing standpoint. So, you shouldn't necessarily look at Q1 as indicative that way we're committed to continuing to invest in the business to drive innovation. And R&D levels should be relatively consistent with what they have been in the past.

Tycho Peterson - JP Morgan

Okay and as we think about some of the strategies, lay down the path around putting... I think you talked about that has a portfolio being kitable at some point and may be just with the commentary made on Guava are there obvious opportunities around that collaboration to poke to other consumables and we know where we think we are in terms of percentage of the portfolio that you've been able successfully drive forward?

Unidentified Company Representative

Yeah, we've never given a clear indication that portfolio could be kitting [ph]. I mean we're moving towards that but I wouldn't count on have of the bio science portfolio. There is a tendency for customers to adopts kits faster because its easier to use and as we see opportunities to combine it. We'll move more towards kits. There are two examples of kits one is our Illuminex business where averaging is basically and a kit and we're expanding those businesses and are growing well. So that's an indication that kitting is a good strategy and for Guava this is brand new and as we enter Q3 we'll be more specific on how many kits will launch but all these products will be kitted, but I am not going to say its 50% or 40%, its just a general trend in the market and its driven by providing the customer with a solution that's easier to use. That's how you should think about it.

 

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