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TO
OUR
SHAREHOLDERS,
EMPLOYEES AND
CUSTOMERS:
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C. William Zadel
Chairman, President
and Chief Executive Officer
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Francis J. Lunger
Executive Vice President,
Chief Operating Officer |
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Year
2000 started with a reorganized management team and high expectations
for continued growth in Millipore’s revenue and profitability.
These expectations were met and then exceeded. The microelectronics
industry entered one of its hypergrowth stages this year reaching
a new peak in August, 2000, and we were ready with an expanded
product line and the manufacturing flexibility to match demand.
We also saw continuing growth in biotechnology-derived pharmaceuticals
and had the technology breadth and applications expertise to
help biotech companies bring these to market. There were also
some very exciting developments in life science research that
created new growth opportunities for Millipore, and we acted
on these opportunities with new alliances and new platforms
of products.
Revenues for 2000 were $954 million, an increase
of 24 percent compared to 1999 revenues, and, in local currency,
an increase of 26 percent. Earnings for the year were $2.48
per diluted share compared with $1.35 per diluted share in 1999
when non-recurring items were excluded.
The microelectronics industry growth cycle accelerated
to full speed during 2000. Millipore’s microelectronics business
followed this trend and grew to record levels of revenue and
profitability. We supported our customers in meeting their high
demand and advancing new manufacturing processes including copper
deposition and chemical mechanical planarization. Revenue for
the year in microelectronics grew 71 percent in dollars and
70 percent in local currency. Operating income for the year
grew 304 percent versus 1999 in local currency, highlighting
the profitability leverage that comes with revenue growth in
this business.
Millipore’s bioscience business was favorably
impacted by two growth engines — biotech drug manufacturing
and life science research. Biotechnology-derived drugs continue
to grow as a percentage of the total pharmaceutical market and
Millipore’s extensive product line of filtration, purification
and chromatography products continue to add value in manufacturing
these therapeutics. Life science research, particularly in areas
of genomics, proteomics and drug development, also grew significantly
during 2000. This research, taking place in government and academic
laboratories as well as in the labs of pharmaceutical and genomics
companies, utilizes Millipore’s large and growing line of products
for sample preparation, purification and capture. Of particular
note: we completed customer testing of new genomics sample preparation
kits in 2000, the first of which was introduced worldwide this
January. Late in 2000, we also formed an alliance with Applied
Biosystems to create the next generation of sample preparation
devices for proteomics.
Revenues for Millipore’s bioscience business grew
10 percent in 2000 versus 1999 in local currency and 6 percent
in dollars. Operating income for the year grew 18 percent versus
1999 in local currency, again highlighting the profitability
leverage Millipore gains with revenue volume growth.
During 2000, as our two businesses experienced
strong growth, the differences between the businesses became
increasingly obvious. This observation was not new information,
but it became more important because the magnitude of the difference
had increased with the growth of each business.
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