Westbrook-based veterinary technology firm Idexx Laboratories Inc. said Thursday that it generated revenue of $1.97 billion in 2017, an 11 percent increase over the previous year.
The company also said it will use excess funds from the recent corporate tax cut to increase its contribution to employee 401(k) retirement funds from 4 percent to 5 percent.
Idexx reported net income of $263.1 million, or $2.94 per share, for the year, up 20 percent from $222 million, or $2.44 per share, in 2016. Its 2017 revenue of $1.97 billion was up 11 percent from $1.78 billion in 2016.
“Around the world, we’re seeing sustained, positive momentum in our markets, as the pet-human bond continues to strengthen, the appropriate use of diagnostics in the delivery of pet care gains further traction, and our exceptional commercial teams collaborate with veterinarians to support their practices’ growth with Idexx’s unique diagnostic and software solutions,” Idexx Chairman and CEO Jonathan Ayers said in a statement.
In the fourth quarter, Idexx generated revenue of $506.1 million, up 14 percent from $443 million in the fourth quarter of 2016, the company said. Net income in the fourth quarter of 2017 was $38.3 million, or 43 cents per share, down 25.9 percent from $52.4 million, or 58 cents per share, a year earlier.
Idexx said its most recent quarterly earnings were negatively affected by one-time adjustments related to the recent federal income tax reform. One-time charges for the repatriation of the company’s foreign profits and a reduction in deferred taxes at the lower enacted corporate tax rate cost Idexx about $31 million, or 34 cents per share, it said.
Still, Idexx said it expects to benefit from the tax changes in the coming year. The company raised its outlook for 2018 net income by 55 cents per share to a range of $4.04 to $4.18 per share, reflecting expectations for continued strong operating performance, a lower effective tax rate and benefits from foreign exchange.
“With great runway ahead, and building from a strong 2017 performance with the further tailwind of U.S. tax reform, we’re pleased to be raising our revenue and earnings outlook for 2018, continuing to deliver on our long-term financial goals,” Ayers said. “With the opportunity presented by U.S. tax reform, we are augmenting investments in software, data and related innovation. We will also be supporting our U.S. employees by raising the company’s match for our 401(k) retirement plan, where we have tremendous U.S. employee participation.”
Idexx, which produces veterinary diagnostic testing equipment, software and other products, employs about 2,500 people in Westbrook and has been growing rapidly in recent years. The company recently announced plans to build a $62 million add-on to its existing headquarters that ultimately would add up to 600 jobs.
Idexx is a publicly held company that trades on the Nasdaq exchange under the symbol IDXX. Its share price increased by over 2 percent to $192 in early trading Thursday, after the release of the company’s 2017 earnings report.
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