Headquarters: 4300 N. Harbor Drive, Fullerton
Employees: 9,850; 2,217 in OC
Business: Medical diagnostic, research instruments
Market value, as of April 4: $3.5 billion
12-month revenue: $2.4 billion, up 1%
12-month net income: $150.6 million, down 29%
Year in review: 2005 was a transitional year for medical device maker Beckman Coulter Inc.
Some 60% of Beckman’s yearly sales come from supplies, chemistry kits and services. In July, Beckman changed the way it accounts for leases of its instruments. The company now logs them as operating leases, where revenue is spread over the life of the lease. Before, the company used a sales lease method, in which the value of the deal was recognized at once.
Fourth-quarter sales fell 5% from a year earlier to $656 million. Net income dropped 70% to $17.8 million.
Beckman’s seen other changes. Last year, the company combined its dominant diagnostic business, which sells testing gear and supplies to labs and hospitals, and its smaller biomedical research unit, which sells products to drug makers, universities and other researchers. Beckman also cut some 350 jobs.
What’s ahead: Beckman is looking for a payoff from its lease change.
The company recently came out with two workhorse instruments for labs, which analysts said are off to a strong start.
Meanwhile, Beckman is looking to boost efficiency by reducing suppliers and contracting out for some “sub-assembly” manufacturing.
The company also is tweaking its distribution, including with a new warehouse locally.
Wall Street’s take: Beckman’s shares are off slightly for the year. Wall Street expects an 8% sales rebound to $2.8 billion for the year. Net income could be $177 million, up 17%.
WHO’S IN CHARGE
SCOTT GARRETT
Chief executive
Joined company: 2002
Education: bachelor’s in mechanical engineering from Valparaiso University in Indiana, master’s in business from Lake Forest Graduate School of Management
Career: Spent nearly 20 years with Baxter International Inc. and its 1985 acquisition, American Hospital Supply Corp. Before joining Beckman, Garrett headed investment firm Garrett Capital Advisors LLC and Kendro Laboratory Products LP.
