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QIAGEN Reports Strong First Quarter 2008 Results |
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Corporate news announcement processed and transmitted by Hugin ASA.
The issuer is solely responsible for the content of this
announcement.
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* 62% Revenue Growth, 10% Organic Growth
* 79% Adjusted Operating Income Growth
* $0.18 Adjusted EPS
Venlo, The Netherlands, May 5, 2008 - QIAGEN N.V. (Nasdaq: QGEN;
Frankfurt, Prime Standard: QIA) today announced the results of
operations for its first quarter ended on March 31, 2008.
The reported net sales as well as adjusted earnings per share for the
first quarter 2008 exceeded the guidance provided by the Company on
February 12, 2008.
QIAGEN's first quarter 2008 results include the results of operations
of Digene Corporation and eGene, Inc. as well as certain charges
related to these acquisitions which occurred after the first quarter
of 2007.
First Quarter 2008 Results
The Company reported that consolidated net sales for its first
quarter 2008 increased 62% to $207.1 million from $127.9 million for
the same quarter in 2007. Reported operating income for the quarter
increased 15% to $33.0 million from $28.8 million in the same quarter
of 2007, and net income for the quarter increased 2% to $20.3 million
from $19.9 million in the same quarter of 2007. Diluted earnings per
share for the first quarter decreased to $0.10 in 2008 (based on
205.1 million weighted average shares and share equivalents
outstanding) from $0.13 in 2007 (based on 156.2 million weighted
average shares and share equivalents outstanding).
On an adjusted basis, first quarter operating income increased 79% to
$58.7 million in 2008 from $32.8 million in 2007, and first quarter
2008 adjusted net income increased 63% to $36.9 million from $22.6
million in 2007. Adjusted diluted earnings per share increased to
$0.18 in the first quarter 2008 from $0.14 in 2007.
QIAGEN's First Quarter 2008 (in US$ millions, except per share
information)
Q1 2008 Q1 2007 Growth
Net sales 207.1 127.9 62%
Operating income, adj.[1] 58.7 32.8 79%
Net income, adj.[1] 36.9 22.6 63%
EPS, adj.[1] (US$) 0.18 0.14 29%
[1] excluding acquisition, integration and restructuring related
charges as well as
amortization of acquired IP and equity-based compensation (SFAS
123R)
as detailed in the table below.
QIAGEN has regularly reported adjusted results to give additional
insight into its financial performance. Adjusted results should be
considered in addition to the reported results prepared in accordance
with generally accepted accounting principles, but should not be
considered a substitute. The Company believes certain items should be
excluded from adjusted results when they are either outside of our
ongoing core operations or vary significantly from period to period,
which affects the comparability of results with the Company's
competitors and its own prior periods. Costs and charges excluded
from adjusted results include acquisition, integration, and
restructuring related costs, acquisition-related amortization, and
compensation cost due to equity based compensation in accordance with
Statement of Financial Accounting Standards No. 123 (Revised) (SFAS
123R).
QIAGEN's Adjustments to Gross Profit, Operating
Income, Net Income and EPS
In US$ millions unless indicated Q1 2008 Q1 2007
Gross profit reported 141.2 87.1
Amortization of acquired IP 10.9 1.9
SFAS 123R impact 0.2 0.0
Gross profit, adjusted 152.3 89.0
Operating income, reported 33.0 28.8
Acquisition and integration related 8.7 0.7
charges (incl. COS)
Relocation and restructuring charges 0.5 0.4
Amortization of acquired IP (incl. 14.5 2.6
COS)
SFAS 123R impact (incl. COS) 2.0 0.3
Operating income, adjusted 58.7 32.8
Net income, reported 20.3 19.9
Acquisition and integration related 5.6 0.5
charges
Relocation and restructuring charges 0.3 0.3
Amortization of acquired IP 9.4 1.7
SFAS 123R impact 1.3 0.2
Net income, adjusted 36.9 22.6
Weighted average number of basic 195,993,000 150,389,000
common shares
Weighted average number of diluted 205,126,000 156,199,000
common shares
EPS, reported in US$ 0.10 0.13
EPS, adjusted in US$ 0.18 0.14
"QIAGEN experienced a successful start into 2008," said Peer Schatz,
QIAGEN's Chief Executive Officer. "We saw strong revenue and net
income growth and exciting momentum in our strategic position. We
launched 19 new products in the area of sample and assay technologies
and are managing a strong pipeline of new products. Most notably, our
new flagship, the QIAsymphony platform, launched in January 2008, has
received a very strong reception by our customers across all
segments."
"Our financial statements also give evidence to significant value
creation from our most recent acquisitions. The integrations of our
recently acquired businesses are fully on track to meet their targets
in terms of cost synergies, accretion and timelines. In January 2008,
QIAGEN launched the QIAxcel system which is based on the capillary
electrophoresis technology acquired in the transaction with eGene.
QIAGEN also initiated marketing of QIAGENs new line of digene HC2
tests added in the Digene acquisition through merged laboratory sales
channels. In addition, we significantly expanded our clinical sales
channel, launched new tactical and marketing campaigns and created
access for our products in countries not previously served directly."
"We are very pleased with our financial performance in this first
quarter of 2008. Reported revenues and adjusted earnings per share
came in very strong and exceeded our expectations. We experienced a
strong adjusted operating margin jump to 28% in the first quarter
2008 which corresponds to a growth rate of 79% year over year
reflective of the attained cost synergies following the acquisition
of Digene," said Roland Sackers, QIAGEN's Chief Financial Officer.
"Revenue growth for the first quarter was 62% and was fueled by a
strong organic growth of 10% and a positive contribution of 43% from
acquisitions. Our consumable portfolio contributed 68% growth (59% at
constant exchange rates). In the wake of new product introductions in
QIAGEN's instrumentation business (such as the QIAsymphonySP and
QIAxcel) which will mostly start shipping late in the second quarter,
this product area recorded a growth rate at constant exchange rates
of 3%. Net sales in North America for the first quarter 2008
represented approximately 50% of our overall business and recorded a
growth rate of 106% while European sales, which represent
approximately 38% of our revenues showed a growth rate of 21% at
constant exchange rates. Despite the expiration of a number of third
party distribution agreements end of 2007 which we had inherited
through previous acquisitions, net sales in Asia remained strong,
showing a growth rate of 14% at constant exchange rates."
QIAGEN's First Quarter 2008 at Constant
Currencies
2008 2008 2007 Growth Rates
As percentage Q1 Q1 Q1
of net sales, Constant Constant
unless indicated Reported Currency Reported Reported Currency
Consumables 92% 92% 89% 68% 59%
Instruments 7% 7% 10% 11% 3%
Others 1% 1% 1% 71% 59%
Total revenues 100% 100% 100% 62% 53%
Gross margin 68% 69% 68% 62% 55%
Gross margin, adj.[1] 74% 75% 70% 71% 64%
Operating income margin 16% 17% 23% 15% 15%
Operating income margin, 28% 30% 26% 79% 78%
adj. [1]
Net income margin 10% 10% 16% 2% -1%
Net income margin, adj. 18% 18% 18% 63% 60%
[1]
EPS in US$ per share 0.10 0.10 0.13 -23% -23%
EPS in US$ per share, 0.18 0.18 0.14 29% 29%
adj. [1]
[1] excluding acquisition, integration and restructuring related
charges as well as
amortization of acquired IP and equity-based compensation (SFAS
123R)
as detailed in the table above.
Detailed information on QIAGEN's business and financial performance
will be presented in its conference call on May 6, 2008 at 9:30am ET.
The corresponding presentation slides will be available for download
on QIAGEN's website at www.qiagen.com/goto/050608. A webcast of the
conference call will be available on the same website at
www.qiagen.com/goto/050608.
QIAGEN - Sample and Assay Technologies Highlights:
* QIAGEN and BioHelix entered into a non-exclusive worldwide
license and supply agreement for BioHelix's proprietary Helicase
Dependent Amplification (HDA) technology. Unlike conventional
amplification technologies such as polymerase chain reaction
(PCR), which requires thermocycling, HDA works at a constant
temperature, eliminating the need for complex and costly
instrumentation. HDA is compatible with a large range of
detection instruments including those incorporated in the
QIAsymphony and the QIAensemble platforms. The technology can be
the basis to a wide field of singleplex and/or multiplex assays
for use in research, pharmaceutical development, applied markets
or molecular diagnostics.
* QIAGEN launched 19 new products in the area of sample & assay
technologies including the QIAxcel for fully automated capillary
electrophoresis to separate and analyze DNA, RNA and proteins,
the QIAsymphonySP, the first system of a novel modular processing
platform which can be integrated to automate entire workflows and
the EZ1 Advanced, the next generation of our successful EZ1 for
the fully automated low throughput sample preparation with
prefilled cartridges, introduced in 2004. In addition QIAGEN
launched a number of assay technologies including two tests for
the applied testing markets to detect bovine virus diarrhea virus
(BVD) in cattle and Taylorella equigenitalis in horses.
* QIAGEN opened a new Service Solutions Center in Singapore for the
Asia-Pacific region. The facility completes the Company's global
Service Solution Network by adding a center in the Asia-Pacific
region to its existing centers in the United States (Valencia,
CA, and Germantown, MD), Europe (Hilden, Crawley, Paris) and
Japan (Tokyo).
* QIAGEN and the Center for Molecular Medicine (CMM) established a
research collaboration for molecular diagnostic markers for
breast cancer and other women's health issues. CMM's privileged
access to clinical samples, its molecular analysis capabilities
as well as XenoBase, a one-of-a-kind software and database system
developed at the Van Andel Research Institute make it a perfect
partner to identify clinically actionable associations between
diseases, biomarkers and treatments. Based on the result of
QIAGEN's initial research, CMM may also provide laboratory-based
genomics and proteomics services to assist QIAGEN in the
development and validation of new molecular diagnostic tests.
About QIAGEN:
QIAGEN N.V., a Netherlands holding company, is the
leading global provider of sample and assay technologies. Sample
technologies are used to isolate and process DNA, RNA and proteins
from biological samples such as blood or tissue. Assay technologies
are used to make such isolated biomolecules visible. QIAGEN has
developed and markets more than 500 consumable products as well as
automated solutions for such consumables. The company provides its
products to molecular diagnostics laboratories, academic researchers,
pharmaceutical and biotechnology companies, and applied
testing customers for purposes such as forensics, animal or food
testing and pharmaceutical process control. QIAGEN's assay
technologies include one of the broadest panels of molecular
diagnostic tests available worldwide. This panel includes the only
FDA-approved test for human papillomavirus (HPV), the primary cause
of cervical cancer. QIAGEN employs more than 2,700 people in over 30
locations worldwide. Further information about QIAGEN can be found at
www.qiagen.com.
Certain of the statements contained in this news release may be
considered forward-looking statements within the meaning of Section
27A of the U.S. Securities Act of 1933, as amended, and Section 21E
of the U.S. Securities Exchange Act of 1934, as amended. To the
extent that any of the statements contained herein relating to
QIAGEN's products, markets, strategy or operating results are
forward-looking, such statements are based on current expectations
that involve a number of uncertainties and risks. Such uncertainties
and risks include, but are not limited to, risks associated with
management of growth and international operations (including the
effects of currency fluctuations and risks of dependency on
logistics), variability of operating results, the commercial
development of the applied testing markets, clinical research markets
and proteomics markets, women's health/HPV testing markets, nucleic
acid-based molecular diagnostics market, and genetic vaccination and
gene therapy markets, changing relationships with customers,
suppliers and strategic partners, competition, rapid or unexpected
changes in technologies, fluctuations in demand for QIAGEN's products
(including fluctuations due to the level and timing of customers'
funding, budgets, and other factors), our ability to obtain
regulatory approval of our infectious disease panels, difficulties in
successfully adapting QIAGEN's products to integrated solutions and
producing such products, the ability of QIAGEN to identify and
develop new products and to differentiate its products from
competitors' products, market acceptance of QIAGEN's new products and
the integration of acquired technologies and businesses. For further
information, refer to the discussions in reports that QIAGEN has
filed with, or furnished to, the U.S. Securities and Exchange
Commission (SEC).
###
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three months
(in thousands,
except per share
data) ended March 31,
2008 2007
Net sales $ 207,106 $ 127,879
Cost of sales 55,056 38,926
Cost of sales -
acquisition related
intangible
amortization 10,826 1,907
Gross profit 141,224 87,046
Operating Expenses:
Research and
development 21,369 11,531
Sales and
marketing 54,078 31,303
General and
administrative 19,903 13,626
Acquisition,
integration and
related costs 8,725 690
Acquisition
related intangible
amortization 3,651 691
Relocation and
restructuring
costs 460 409
Total operating
expenses 108,186 58,250
Income from
operations 33,038 28,796
Other Income
(Expense):
Interest income 2,972 5,166
(Interest expense) (10,451) (4,691)
Other income
(expense), net 2,135 (254)
Total other income
(expense) (5,344) 221
Income before
provision for
income taxes and
minority interest 27,694 29,017
Provision for
income taxes 7,301 9,150
Minority interest 60 -
$
Net income $ 20,333 19,867
Weighted average
number of diluted
common shares 205,126,000 156,199,000
Diluted net income $ $
per common share 0.10 0.13
Diluted net income
per common share
excluding
acquisition,
integration and
restructuring
related charges
as well as
amortization of
acquired IP and
equity-based
compensation (SFAS $ $
123R) 0.18 0.14
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in
thousands) March 31, December 31,
2008 2007
Assets (unaudited)
Current Assets:
Cash and cash equivalents $ 351,561 $ 347,320
Marketable securities - 2,313
5,609
Notes receivable 5,139
Accounts receivable, net 152,459 136,707
Income taxes receivable 11,343 10,696
Inventories 99,095 88,346
Deferred income taxes 38,532 23,732
Prepaid expenses and other 37,063 33,693
Total current assets 695,662 647,946
Long-Term Assets:
Property, plant and equipment, net 299,597 283,491
Goodwill 1,113,354 1,107,882
Intangible assets, net 631,078 639,107
Deferred income taxes 75,092 72,128
Other assets 27,463 24,620
Total long-term 2,146,584 2,127,228
assets
Total assets $ 2,842,246 $ 2,775,174
Liabilities and Shareholders' Equity
Current Liabilities:
$ $
Short term loans - 4
Current portion of capital lease 2,962
obligations 2,769
Accounts payable 37,822 40,379
Accrued and other liabilities 99,595 104,220
Income taxes payable 22,617 13,456
6,739
Deferred income taxes 4,903
Total current 169,735 165,731
liabilities
Long-Term Liabilities:
Long-term debt, net of current 950,000 950,000
portion
Capital lease obligations, net of 33,182 33,017
current portion
Deferred income taxes 226,838 225,893
10,832
Other 8,405
Total long-term 1,220,852 1,217,315
liabilities
Minority interest in consolidated 411
subsidiaries 553
Shareholders' Equity:
Common shares, EUR .01 par value:
Authorized--410,000,000
shares
Issued and
outstanding--196,296,429
shares
in 2008 and 2,190
195,335,076 shares in 2,175
2007
Additional 937,243 925,597
paid-in-capital
Retained earnings 409,112 388,779
Accumulated other 102,703 75,024
comprehensive income
Total shareholders' 1,451,248 1,391,575
equity
Total liabilities and $ 2,842,246 $ 2,775,174
shareholders' equity
Contacts:
Roland Sackers Dr. Solveigh Mähler
Chief Financial Officer Director Investor Relations
QIAGEN N.V. QIAGEN N.V.
e-mail: +49 2103 29 11710
roland.sackers@qiagen.com e-mail: solveigh.maehler@qiagen.com
Albert F. Fleury
Associate Director Investor Relations
North America
QIAGEN N.V.
+1 301 944 7028
e-mail: albert.fleury@qiagen.com
--- End of Message ---
Qiagen N.V.
Spoorstraat 50 KJ Venlo Netherlands
WKN: 901626; ISIN:
NL0000240000; Index: HDAX, MIDCAP, Prime All Share, TECH All Share,
TecDAX;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in
Börse Berlin,
Freiverkehr in Börse Düsseldorf, Freiverkehr in Hanseatische
Wertpapierbörse zu Hamburg,
Freiverkehr in Niedersächsische Börse zu Hannover, Freiverkehr in
Bayerische Börse München,
Freiverkehr in Börse Stuttgart;
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