Alere Posts Wider Loss From Cont. Ops. In Q1 - Quick Facts

(RTTNews) - Alere Inc. (ALR), a global leader in rapid diagnostic tests, reported a net loss from continuing operations during the first quarter of $10 million, or $0.18 per share, compared to a loss of $6 million, or $0.14 per share in the prior year period.

On a Non-GAAP basis, the company reported Non-GAAP adjusted EBITDA of $109 million in the first quarter of 2016, compared to $135 million in the prior year period. The company said the year-over-year decline was driven primarily by incremental expenses related to the pending merger with Abbott, higher legal expenses associated with ongoing government investigations, and lower margins due to primarily to product sales mix and volume.

Revenue for the first quarter of 2016 was $578 million, a 6% decrease compared to $613 million in the prior year period. The company said the year-over-year decrease in revenue was primarily due to the negative impact of $17 million in foreign currency exchange, a $14 million decrease in BBI revenue, which was divested in November 2015, and a $6 million decrease in pain management revenue. The revenue decreases were partially offset by increased Alere i sales and the acquisition of U.S. Diagnostics.

Namal Nawana, CEO of Alere, stated: "Despite the weaker respiratory season, we're pleased to report that Alere i continued to grow its market presence, generating record revenue during the first quarter of 2016. Based on our current business outlook, we expect improved organic revenue growth in the second quarter and second half of 2016."