IDEXX Laboratories Inc. Q4 2008 Earnings Call Transcript

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2009-01-30 11:37:11.0

Tags: U.S. Bancorp Piper Jaffray Inc., Call Transcript, Idexx Laboratories Inc., Earnings, Pricing Strategy, Pricing, Marketing Research, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) We'll first go to the line of David Clair of Piper Jaffray. Please go ahead.

David Clair - Piper Jaffray

Good morning.

Merilee Raines

Good morning.

David Clair - Piper Jaffray

Just a quick question on guidance. You grew 6.5% organically this quarter. Your guidance was 7% to 9% in fiscal '09. Just, if you can kind of walk us through there. I mean, it seems like the economy continues to be a drag year. I am just curious how you get into the 7% to 9%?

Merilee Raines

David, I think that nobody can really predict where the economy is going to go and so all that we can do is really with our projections is, kind of presume that what we saw in the fourth quarter continues into 2009, so we kind of looked at that. That is being the impact of the economy.

And then, as John and I both mentioned, we do have some growth that's coming from new products. Our instrument launches will contribute a couple of percentage to the organic growth next year. And so, we just looked at everything all in the mix economy and then factoring growth of and contribution from new products is delivering the 7% to 9%.

David Clair - Piper Jaffray

Okay. And you kind of hit on this on the commentary, but can you give us any clarity on pricing and volume impacts on the consumables and the rapid assay businesses? I mean if you can just kind of split impact on each of those?

Jon Ayers

Do you mean the impact in Q4?

David Clair - Piper Jaffray

Yes.

Merilee Raines

Well, in comparison to what prior periods?

David Clair - Piper Jaffray

Well, year-over-year, I mean, was pricing up 2% and volume down 2% or how?

Merilee Raines

In rapid assay, in particular, looking year-over-over and the quarter, pricing was a little bit under 2% and the rest was volume and this is on the growth of 5%, that's adjusted for distributor inventories.

David Clair - Piper Jaffray

Okay.

Merilee Raines

So pricing a little bit under 2% and then volume therefore a bit above 3% or closer to 4% for the total of 5%.

David Clair - Piper Jaffray

Okay, great. And well I think that's it for me. Thank you.

Jon Ayers

Thank you.

Operator

Thank you. And our next question comes from Ryan Daniels from William Blair. Please go ahead.

 

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