Neogen F4Q09 (Qtr End 5/31/09) Earnings Call Transcript

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2009-07-21 12:16:37.0

Tags: Category, E.I. Du Pont De Nemours & Co., Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, Neogen Corp.

Question-and-Answer Session

Operator

Great. (Operator Instructions). We will take our first question from Steven Crowley with Craig-Hallum Capital Management.

Steven Crowley - Craig-Hallum Capital Management

Good morning gentlemen.

James Herbert

Good morning Steve.

Steven Crowley - Craig-Hallum Capital Management

Congratulations on another very good performance.

James Herbert

Thank you.

Steven Crowley - Craig-Hallum Capital Management

I've some questions for you. In terms of the recently acquired products that made a nice contribution this last fiscal year, can you give us a feel for what DuPont and IDS contributed in the quarter, I mean we can back in to the total, but maybe those pieces specifically?

James Herbert

Yeah, I think, Rick, you have that number, I believe.

Richard Current

Definitely. Steve, for DuPont it was 2,600,000 and for IDS, a 175,000.

Steven Crowley - Craig-Hallum Capital Management

Okay, so for the year DuPont came in, at what number?

Richard Current

9 million, just under SEK 9 million.

Steven Crowley - Craig-Hallum Capital Management

Okay, thanks. So the balance of that category is more than just a domestic rodenticide business. I will turn it back into that 11%. So there are other components to that category versus just domestic rodenticide, the one additional factor here.

Lon Bohannon

Steve the growth related to domestic rodenticide, that category of domestic rodenticide sales was up 11% for the year.

Steven Crowley - Craig-Hallum Capital Management

Okay. But it wasn't the entire balance of that category from what I can gather otherwise the numbers don't add up.

James Herbert

No we separate -- we keep the rodenticides and disinfectants separate, Ron was just reporting on rodenticides.

Steven Crowley - Craig-Hallum Capital Management

Okay, well I can deal with this offline to make sure my numbers are adding up now. In terms of the bacterial and general sanitation products it seems like you're getting nice utilization, given your comments on disposables plus consumables utilization but there have been some challenges given the economy on selling or placing additional hard work. Is that the way to inference for us to have and how tricky is that equation moving forward. Do you see things getting better there?

James Herbert

It's a very good question Steve and you are exactly right. As we moved through the 2009 fiscal year we did see a slowdown in terms of purchases of the capital equipment. We saw very steady growth and we continue to add more systems out there. And so we are seeing increases in sales of the disposables. But the number of instruments that replaced, both slowed down and was approximately equal to what it was last year.

 

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