Beckman Coulter Inc. announced its results for the first quarter ended March 31, 2010 results. Reported first quarter revenue, including $115.7 million from the recent Olympus Diagnostics acquisition, was $881.1 million, up 27.4% over prior year quarter, or 23.6% in constant currency. On a constant currency basis, recurring revenue increased 23.7%. Recurring revenue, excluding the impact of Olympus, grew 8.4% in constant currency. Reported net earnings were $38.7 million, or $0.54 per fully diluted share. Adjusted for special items related primarily to restructuring charges and acquisition costs, and excluding Olympus intangibles amortization, net earnings were $61.8 million, or $0.86 per fully diluted share, an increase of 21% over prior year quarter.

Recurring revenue increased 23.7% in constant currency, including 15.3% due to the Olympus acquisition. Automated immunoassay recurring revenue grew 17% in constant currency in the quarter as a result of strong demand in international markets and against a weak prior year quarter.

Cash instrument sales increased 23.3% in constant currency, due to the Olympus acquisition and a strong quarter in life science. Life science cash instrument sales increased 12.4% driven by particularly strong growth in Europe and Asia.

In the quarter, clinical diagnostics revenues increased 26.1% in constant currency due to Olympus and robust growth in Europe and Asia. Sales to life science customers increased 7.9% in constant currency against a weak prior year quarter.

On a geographic basis, first quarter revenue in the United States increased 12.9%, led primarily by Olympus. In constant currency, international revenue increased 35% due to Olympus and strong demand in Asia.

Operating income in the quarter was $79.9 million. On an adjusted basis, operating income grew to $103.6 million, 57% over prior year quarter. Adjusted operating margin was 11.8%, a 230 basis point improvement over prior year quarter due to Olympus synergies and expense management.

Non-operating expense was $22.5 million (including $8.2 million of interest expense associated with the Olympus acquisition) compared to $21.4 million in the prior year quarter which included a foreign currency loss of $11.8 million related to our hedge for the Olympus purchase. The tax rate in the quarter was 32.6% compared to (13.2%) in the prior year quarter, which benefited from discrete items. The higher tax rate in the first quarter 2010 is primarily due to the write off of a deferred tax asset related to the change in Medicare drug subsidy due to healthcare reform. The adjusted tax rate was 23.8% compared to 19.3% in the prior year quarter; both periods benefited from discrete items.

Net earnings were $38.7 million, or $0.54 per fully diluted share. Excluding Olympus intangibles amortization, restructuring and acquisition-related costs and other items described in the accompanying tables, first quarter adjusted net earnings were $61.8 million or $0.86 per fully diluted share.