##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 Form 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the Quarterly Period Ended December 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from            to
 Commission file number 0-14902
 MERIDIAN BIOSCIENCE, INC.
  
 
  þ o
  Large
accelerated
filer þAccelerated
filer oNon-accelerated filer o(Do not check if a smaller reporting company)Smaller reporting company o  o þ
  Class
    
    Outstanding January 30, 2009Common Stock, no par value
    
    40,399,534




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##### 



MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
INDEX TO QUARTERLY REPORT ON FORM 10-Q
 Page(s)PART I
    
    FINANCIAL INFORMATIONItem 1.
    
    Financial Statements (Unaudited)Consolidated Statements of Operations
Three Months Ended December 31, 2008 and 2007
    
    
    3Consolidated Statements of Cash Flows
Three Months Ended December 31, 2008 and 2007
    
    
    4Consolidated Balance Sheets
December 31, 2008 and September 30, 2008
    
    
    5-6Consolidated Statement of Changes in Shareholders Equity
Three Months Ended December 31, 2008
    
    
    7Notes to Consolidated Financial Statements
    
    
    8-15Item 2.
    
    Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    
    15-20Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risk
    
    
    20Item 4.
    
    Controls and Procedures
    
    
    20PART II.
    
    OTHER INFORMATIONItem 1A.
    
    Risk Factors
    
    
    20Item 6.
    
    Exhibits
    
    
    21Signature
    
    
    
    
    22EX-31.1EX-31.2EX-32
  The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil
litigation for forward-looking statements accompanied by meaningful cautionary statements.
Except for historical information, this report contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, which may be identified by words such as estimates,
anticipates, projects, plans, seeks, may, will, expects, intends, believes,
should and similar expressions or the negative versions thereof and which also may be
identified by their context. Such statements, whether expressed or implied, are based upon
current expectations of the Company and speak only as of the date made. The Company assumes no
obligation to publicly update any forward-looking statements. These statements are subject to
various risks, uncertainties and other factors that could cause actual results to differ
materially, including, without limitation, the following: Meridians continued growth depends,
in part, on its ability to introduce into the marketplace enhancements of existing products or
new products that incorporate technological advances, meet customer requirements and respond to
products developed by Meridians competition. While Meridian has introduced a number of
internally developed products, there can be no assurance that it will be successful in the
future in introducing such products on a timely basis. Ongoing consolidations of reference
laboratories and formation of multi-hospital alliances may cause adverse changes to pricing and
distribution. Recessionary pressures on the economy and the markets in which our customers
operate can change expected results, as well as adverse trends in buying patterns from
customers. Costs and difficulties in complying with laws and regulations administered by the
United States Food and Drug Administration can result in unanticipated expenses and delays and
interruptions to the sale of new and existing products. Changes in the relative strength or
weakness of the U.S. dollar can also change expected results. One of Meridians main growth
strategies is the acquisition of companies and product lines. There can be no assurance that
additional acquisitions will be consummated or that, if consummated, will be successful and the
acquired businesses successfully integrated into Meridians operations. In addition to the
factors described in this paragraph, Part I, Item 1A Risk Factors of our Form 10-K contains a
list and description of uncertainties, risks and other matters that may affect the Company.
 Page 2 of 22




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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
 Three Months Ended December 31
    
    2008
    
    2007NET SALES
    
    $
    34,293
    
    
    $
    33,847COST OF SALES
    
    
    10,949
    
    
    
    12,095GROSS PROFIT
    
    
    23,344
    
    
    
    21,752OPERATING EXPENSES:Research and development
    
    
    2,064
    
    
    
    1,536Selling and marketing
    
    
    4,967
    
    
    
    4,690General and administrative
    
    
    4,155
    
    
    
    4,333Total operating expenses
    
    
    11,186
    
    
    
    10,559OPERATING INCOME
    
    
    12,158
    
    
    
    11,193OTHER INCOME (EXPENSE):Interest income
    
    
    262
    
    
    
    455Other, net
    
    
    (148
    )
    
    
    (80
    )Total other income (expense)
    
    
    114
    
    
    
    375EARNINGS BEFORE INCOME TAXES
    
    
    12,272
    
    
    
    11,568INCOME TAX PROVISION
    
    
    4,196
    
    
    
    4,112NET EARNINGS
    
    $
    8,076
    
    
    $
    7,456BASIC EARNINGS PER COMMON SHARE
    
    $
    0.20
    
    
    $
    0.19DILUTED EARNINGS PER COMMON SHARE
    
    $
    0.20
    
    
    $
    0.18AVERAGE NUMBER OF COMMON SHARES OUTSTANDING  BASIC
    
    
    40,318
    
    
    
    39,910DILUTIVE COMMON SHARE OPTIONS
    
    
    807
    
    
    
    1,057AVERAGE NUMBER OF COMMON SHARES OUTSTANDING  DILUTED
    
    
    41,125
    
    
    
    40,967ANTI-DILUTIVE SECURITIES:Common share options
    
    
    112
    
    
    
    2DIVIDENDS DECLARED PER COMMON SHARE
    
    $
    0.14
    
    
    $
    0.11
  Page 3 of 22




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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
(dollars in thousands)
 Three Months Ended December 31
    
    2008
    
    2007CASH FLOWS FROM OPERATING ACTIVITIES:Net earnings
    
    $
    8,076
    
    
    $
    7,456Non-cash items:Depreciation of property, plant and equipment
    
    
    731
    
    
    
    705Amortization of intangible assets and deferred costs
    
    
    404
    
    
    
    426Stock based compensation
    
    
    286
    
    
    
    273Deferred income taxes
    
    
    (290
    )
    
    
    (188
    )Unrealized loss on auction-rate securities and  rights, net
    
    
    104
    
    
    
    Change in accounts receivable, inventory, and prepaid expenses
    
    
    (209
    )
    
    
    1,863Change in accounts payable, accrued expenses, and income taxes payable
    
    
    (2,936
    )
    
    
    (1,808
    )Other
    
    
    11
    
    
    
    (177
    )Net cash provided by operating activities
    
    
    6,177
    
    
    
    8,550CASH FLOWS FROM INVESTING ACTIVITIES:Acquisitions of property, plant and equipment
    
    
    (618
    )
    
    
    (736
    )Proceeds from calls of auction-rate securities
    
    
    425
    
    
    
    Purchases of auction-rate securities
    
    
    
    
    
    
    (5,000
    )Net cash used for investing activities
    
    
    (193
    )
    
    
    (5,736
    )CASH FLOWS FROM FINANCING ACTIVITIES:Dividends paid
    
    
    (5,644
    )
    
    
    (4,392
    )Proceeds and tax benefits from exercise of stock options
    
    
    160
    
    
    
    598Other
    
    
    (12
    )
    
    
    Net cash used for financing activities
    
    
    (5,496
    )
    
    
    (3,794
    )Effect of Exchange Rate Changes on Cash and Equivalents
    
    
    (24
    )
    
    
    90Net Increase (Decrease) in Cash and Equivalents
    
    
    464
    
    
    
    (890
    )Cash and Equivalents at Beginning of Period
    
    
    49,297
    
    
    
    49,400Cash and Equivalents at End of Period
    
    $
    49,761
    
    
    $
    48,510
  Page 4 of 22




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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(dollars in thousands)
 ASSETS
 December 31,
    
    September 30,2008
    
    2008CURRENT ASSETS:Cash and equivalents
    
    $
    49,761
    
    
    $
    49,297Accounts receivable, less allowances of $236 and $230
    
    
    21,145
    
    
    
    25,098Inventories
    
    
    24,958
    
    
    
    19,945Prepaid expenses and other current assets
    
    
    2,221
    
    
    
    3,382Deferred income taxes
    
    
    1,869
    
    
    
    1,736Total current assets
    
    
    99,954
    
    
    
    99,458PROPERTY, PLANT AND EQUIPMENT:Land
    
    
    888
    
    
    
    892Buildings and improvements
    
    
    18,308
    
    
    
    16,977Machinery, equipment and furniture
    
    
    26,209
    
    
    
    26,458Construction in progress
    
    
    1,944
    
    
    
    3,391Subtotal
    
    
    47,349
    
    
    
    47,718Less: accumulated depreciation and amortization
    
    
    27,790
    
    
    
    28,043Net property, plant and equipment
    
    
    19,559
    
    
    
    19,675OTHER ASSETS:Goodwill
    
    
    9,866
    
    
    
    9,861Other intangible assets, net
    
    
    8,381
    
    
    
    8,786Restricted cash
    
    
    1,000
    
    
    
    1,000Investments in auction-rate securities and Auction
Rate Security Rights
    
    
    7,221
    
    
    
    7,480Other assets
    
    
    144
    
    
    
    171Total other assets
    
    
    26,612
    
    
    
    27,298TOTAL ASSETS
    
    $
    146,125
    
    
    $
    146,431
  Page 5 of 22




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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
(dollars in thousands)
 LIABILITIES AND SHAREHOLDERS EQUITY
 December 31,
    
    September 30,2008
    
    2008CURRENT LIABILITIES:Accounts payable
    
    $
    3,571
    
    
    $
    4,777Accrued payroll costs
    
    
    4,350
    
    
    
    6,777Purchase business combination liability
    
    
    7
    
    
    
    3Other accrued expenses
    
    
    3,488
    
    
    
    3,613Income taxes payable
    
    
    1,624
    
    
    
    891Total current liabilities
    
    
    13,040
    
    
    
    16,061DEFERRED INCOME TAXES
    
    
    1,658
    
    
    
    1,881COMMITMENTS AND CONTINGENCIESSHAREHOLDERS EQUITY:Preferred stock, no par value, 1,000,000 shares
authorized, none issued
    
    
    
    
    
    
    Common shares, no par value, 71,000,000 shares authorized,
40,330,457 and 40,313,656 shares issued, respectively
    
    
    
    
    
    
    Treasury shares, 190 and 0, respectively
    
    
    (5
    )
    
    
    Additional paid-in capital
    
    
    89,609
    
    
    
    89,107Retained earnings
    
    
    41,448
    
    
    
    39,016Accumulated other comprehensive income
    
    
    375
    
    
    
    366Total shareholders equity
    
    
    131,427
    
    
    
    128,489TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    146,125
    
    
    $
    146,431
  Page 6 of 22




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MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Consolidated Statement of Changes in Shareholders Equity (Unaudited)
(dollars and shares in thousands)
 AccumulatedCommon
    
    
    
    
    
    
    
    
    
    
    Additional
    
    
    
    
    
    
    OtherShares
    
    
    Shares Held in
    
    
    
    
    
    
    Paid-in
    
    
    Retained
    
    
    Comprehensive
    
    
    Comprehensive
    
    
    Total ShareholdersIssued
    
    
    Treasury
    
    
    Treasury Stock
    
    
    Capital
    
    
    Earnings
    
    
    Income (Loss)
    
    
    Income (Loss)
    
    
    EquityBalance at September 30, 2008
    
    
    40,314
    
    
    
    
    
    
    $
    
    
    
    $
    89,107
    
    
    $
    39,016
    
    
    $
    366
    
    
    
    
    
    
    $
    128,489Cash dividends paid
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,644
    )
    
    
    
    
    
    
    
    
    
    
    (5,644
    )Exercise of stock options
    
    
    16
    
    
    
    
    
    
    
    
    
    
    
    223
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    223Shares for issuance of anniversary awards
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )Stock based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    286
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    286Cost of S-8 registration statement
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7
    )Comprehensive income:Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,076
    
    
    
    
    
    
    $
    8,076
    
    
    
    8,076Hedging activity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (22
    )
    
    
    (22
    )
    
    
    (22
    )Transfer of
AFS securities to trading classification
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    270
    
    
    
    270
    
    
    
    270Other comprehensive income taxes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    (5
    )
    
    
    (5
    )Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (234
    )
    
    
    (234
    )
    
    
    (234
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $
    8,085Balance at December 31, 2008
    
    
    40,330
    
    
    
    
    
    
    $
    (5
    )
    
    $
    89,609
    
    
    $
    41,448
    
    
    $
    375
    
    
    
    
    
    
    $
    131,427
  Page 7 of 22




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##### Table of Contents



MERIDIAN BIOSCIENCE, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Dollars in Thousands, Except Per Share Amounts
(Unaudited)
 1. Basis of Presentation:
     2. Significant Accounting Policies
 (a)
    
    Revenue Recognition 
  Revenue Arrangements with Multiple
Deliverables
  Page 8 of 22




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##### Table of Contents



(b)
    
    Comprehensive Income (Loss) 
    Three MonthsEnded December 31,2008
    
    2007Net earnings
    
    $
    8,076
    
    
    $
    7,456Hedging activity
    
    
    (22
    )
    
    
    (75
    )Transfer of
AFS securities to trading classification
    
    
    270
    
    
    
    Income taxes
    
    
    (5
    )
    
    
    (74
    )Foreign currency translation adjustment
    
    
    (234
    )
    
    
    281Comprehensive income
    
    $
    8,085
    
    
    $
    7,588
 (c)
    
    Income Taxes 
  Accounting for Uncertainty in Income Taxes
 (d)
    
    Stock-based Compensation 
 Share-Based Payment
 Page 9 of 22




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##### Table of Contents



(e)
    
    Cash, Cash Equivalents, and Investments 
  December 31, 2008
    
    September 30, 2008Cash and Equivalents
    
    Other Assets
    
    Cash and Equivalents
    
    Other AssetsTaxable investments -Repurchase agreements
    
    $
    
    
    
    $
    
    
    
    $
    6,711
    
    
    $
    Money market funds
    
    
    24,018
    
    
    
    
    
    
    
    
    
    
    
    UBS Auction Rate Security Rights
    
    
    
    
    
    
    660
    
    
    
    
    
    
    
    Tax-exempt investments -Money market funds
    
    
    13,273
    
    
    
    
    
    
    
    12,848
    
    
    
    Variable rate demand notes
    
    
    
    
    
    
    
    
    
    
    23,948
    
    
    
    Student loan auction-rate securities
    
    
    
    
    
    
    6,561
    
    
    
    
    
    
    
    7,480Cash on hand -Non-interest bearing Unrestricted
    
    
    6,883
    
    
    
    
    
    
    
    
    
    
    
    Restricted
    
    
    
    
    
    
    1,000
    
    
    
    
    
    
    
    1,000Interest bearing  unrestricted
    
    
    5,587
    
    
    
    
    
    
    
    5,790
    
    
    
    Total
    
    $
    49,761
    
    
    $
    8,221
    
    
    $
    49,297
    
    
    $
    8,480
    Accounting for Certain Investments in Debt and Equity Securities
 Page 10 of 22




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The Fair Value Option for Financial Assets and Financial Liabilities   Including
an Amendment of FASB Statement No. 115
 (f)
    
    Derivative financial instruments 
 Accounting for Derivative Instruments and Hedging Activities
 (g)
    
    New Accounting Pronouncements 
 Fair Value Measurements
 Page 11 of 22




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##### Table of Contents



Determining the Fair Value of a
Financial Asset When the Market for That Asset Is Not Active
 The
Fair Value Option for Financial Assets and Financial Liabilities  Including an Amendment
of FASB Statement No. 115
 3. Inventories :
  December 31,
    
    September 30,2008
    
    2008Raw materials
    
    $
    5,920
    
    
    $
    5,238Work-in-process
    
    
    4,806
    
    
    
    4,867Finished goods
    
    
    14,232
    
    
    
    9,840$
    24,958
    
    
    $
    19,945
 4. Major Customers and Segment Information
    Page 12 of 22




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US
    
    European
    
    LifeDiagnostics
    
    Diagnostics
    
    Science
    
    Eliminations(1)
    
    TotalThree Months December 31, 2008Net sales-Third-party
    
    $
    23,485
    
    
    $
    5,671
    
    
    $
    5,137
    
    
    $
    
    
    
    $
    34,293Inter-segment
    
    
    2,488
    
    
    
    
    
    
    
    188
    
    
    
    (2,676
    )
    
    
    Operating income
    
    
    10,387
    
    
    
    850
    
    
    
    847
    
    
    
    74
    
    
    
    12,158Total assets (December 31, 2008)
    
    
    126,303
    
    
    
    16,015
    
    
    
    50,676
    
    
    
    (46,869
    )
    
    
    146,125Three Months December 31, 2007Net sales-Third-party
    
    $
    22,219
    
    
    $
    6,099
    
    
    $
    5,529
    
    
    $
    
    
    
    $
    33,847Inter-segment
    
    
    2,300
    
    
    
    
    
    
    
    142
    
    
    
    (2,442
    )
    
    
    Operating income
    
    
    8,936
    
    
    
    1,159
    
    
    
    991
    
    
    
    107
    
    
    
    11,193Total assets (September 30, 2008)
    
    
    126,808
    
    
    
    15,955
    
    
    
    49,619
    
    
    
    (45,951
    )
    
    
    146,431
 
 (1)
    
    Eliminations consist of intersegment transactions.  5. Intangible Assets:
  December 31, 2008
    
    September 30, 2008Wtd Avg
    
    Gross
    
    
    
    
    
    GrossAmort
    
    Carrying
    
    Accumulated
    
    Carrying
    
    AccumulatedPeriod (Yrs)
    
    Value
    
    Amortization
    
    Value
    
    AmortizationCore products and cell lines
    
    
    15
    
    
    $
    4,698
    
    
    $
    2,675
    
    
    $
    4,698
    
    
    $
    2,602Manufacturing technologies
    
    
    14
    
    
    
    6,057
    
    
    
    4,530
    
    
    
    6,057
    
    
    
    4,440Trademarks, licenses and patents
    
    
    7
    
    
    
    2,663
    
    
    
    1,874
    
    
    
    2,663
    
    
    
    1,843Customer lists and supply agreements
    
    
    13
    
    
    
    11,039
    
    
    
    6,997
    
    
    
    11,039
    
    
    
    6,786$
    24,457
    
    
    $
    16,076
    
    
    $
    24,457
    
    
    $
    15,671
  6. Hedging Transactions:
  Page 13 of 22




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
  
 7. Fair Value Measurements:
       Level 1
    
    
    Level 2
    
    
    Level 3
    
    
    TotalStudent loan auction-rate securities
    
    $
    
    
    
    $
    
    
    
    $
    6,561
    
    
    $
    6,561UBS Auction Rate Security Rights
    
    
    
    
    
    
    
    
    
    
    660
    
    
    
    660Foreign exchange forward contracts
    
    
    
    
    
    
    (46
    )
    
    
    
    
    
    
    (46
    )Total
    
    $
    
    
    
    $
    (46
    )
    
    $
    7,221
    
    
    $
    7,175
  Page 14 of 22




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Refer to Forward Looking Statements following the Index in front of this Form 10-Q . In the
discussion that follows, all dollars are in thousands (both tables and text), except per share
data.
 Overview:
   Three
    
    Inc
    
    Six
    
    Inc
    
    Twelve
    
    IncOperating Segment
    
    Months
    
    (Dec)
    
    Months
    
    (Dec)
    
    Months
    
    (Dec)US Diagnostics
    
    $
    23,485
    
    
    
    +6
    %
    
    $
    47,027
    
    
    
    +14
    %
    
    $
    89,685
    
    
    
    +15
    %European Diagnostics
    
    
    5,671
    
    
    
    -7
    %
    
    
    11,941
    
    
    
    +1
    %
    
    
    27,552
    
    
    
    +13
    %Life Science
    
    
    5,137
    
    
    
    -7
    %
    
    
    11,800
    
    
    
    -11
    %
    
    
    22,848
    
    
    
    -11
    %Consolidated
    
    $
    34,293
    
    
    
    +1
    %
    
    $
    70,768
    
    
    
    +7
    %
    
    $
    140,085
    
    
    
    +9
    %
  st C. difficile
 H. pylori
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C. difficile H. pylori TM Card C. difficile
  Goodwill and Other Intangible Assets th
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Results of Operations:
 Net sales
 Three Months Ended December 312008
    
    2007
    
    Inc 
(Dec)US Diagnostics
    
    $
    23,485
    
    
    $
    22,219
    
    
    
    +6
    %European Diagnostics
    
    
    5,671
    
    
    
    6,099
    
    
    
    -7
    %Life Science
    
    
    5,137
    
    
    
    5,529
    
    
    
    -7
    %Consolidated
    
    $
    34,293
    
    
    $
    33,847
    
    
    
    +1
    %International US Export
    
    $
    3,424
    
    
    $
    3,361
    
    
    
    +2
    %European Diagnostics
    
    
    5,671
    
    
    
    6,099
    
    
    
    -7
    %Total
    
    $
    9,095
    
    
    $
    9,460
    
    
    
    -4
    %% of total sales
    
    
    27
    %
    
    
    28
    %
 C. difficile Card ® E. coli C. difficile Card ® st C. difficile
 H. pylori
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Gross Profit
 Three Months Ended December 312008
    
    2007
    
    Inc (Dec)Gross Profit
    
    $
    23,344
    
    
    $
    21,752
    
    
    
    +7
    %Gross Profit Margin
    
    
    68
    %
    
    
    64
    %
    
    +4 points
  Operating Expenses
 Three Months Ended December 31TotalResearch &
    
    Sales &
    
    General &
    
    OperatingDevelopment
    
    Marketing
    
    Administrative
    
    Expenses2007 Expenses
    
    $
    1,536
    
    
    $
    4,690
    
    
    $
    4,333
    
    
    $
    10,559% of Sales
    
    
    5
    %
    
    
    14
    %
    
    
    13
    %
    
    
    31
    %Fiscal 2009
Increases
(Decreases):US Diagnostics
    
    
    537
    
    
    
    227
    
    
    
    (130
    )
    
    
    634European Diagnostics
    
    
    
    
    
    
    26
    
    
    
    3
    
    
    
    29Life Science
    
    
    (9
    )
    
    
    24
    
    
    
    (51
    )
    
    
    (36
    )2008 Expenses
    
    $
    2,064
    
    
    $
    4,967
    
    
    $
    4,155
    
    
    $
    11,186% of Sales
    
    
    6
    %
    
    
    14
    %
    
    
    12
    %
    
    
    33
    %% Increase (Decrease)
    
    
    34
    %
    
    
    6
    %
    
    
    -4
    %
    
    
    6
    %
  C. difficile
 C. difficile
  Operating Income
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Other Income and Expense
  Income Taxes
  Liquidity and Capital Resources:
 Comparative Cash Flow Analysis
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Capital Resources
     
   
   
 PART II. OTHER INFORMATION
 
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MERIDIAN BIOSCIENCE, INC.Date: February 9, 2009
    /s/ Melissa LuekeMelissa LuekeVice President and Chief Financial Officer Page 22 of 22