* 16% Revenue Growth On Constant Exchange Rates
* 11% Organic Growth
* $0.20 Adjusted EPS
VENLO, The Netherlands, May 4, 2009 (GLOBE NEWSWIRE) -- QIAGEN N.V. (Nasdaq:QGEN) (Frankfurt:QIA) today announced the results of operations for its first quarter ended March 31, 2009.
Reported net sales were in line with, and adjusted earnings per share for the first quarter 2009 were at the high end of the guidance provided by the Company on February 10, 2009.
First Quarter 2009 Results
QIAGEN's First Quarter 2009
(in US$ millions, except per share information)
Q1 2009 Q1 2008 Growth
------- ------- ------
Net sales 220.9 207.1 7%
Net sales at constant exchange rates 239.6 207.1 16%
Operating income, adjusted 59.1 58.7 1%
Net income, adjusted 40.3 36.9 9%
EPS, adjusted (US$) 0.20 0.18 11%
For information on the adjusted figures, please refer to the
reconciliation table accompanying this release.
The Company reported that consolidated net sales for its first quarter 2009 increased 7% to $220.9 million from $207.1 million for the same quarter in 2008. Excluding the unfavorable impact from foreign currency exchange rates, net sales for the first quarter 2009 would have increased by 16%. Reported operating income for the quarter increased 12% to $37.0 million from $33.0 million in the same quarter of 2008, and net income for the quarter increased 21% to $24.7 million from $20.3 million in the same quarter of 2008. Diluted earnings per share for the first quarter increased 20% to $0.12 in 2009 from $0.10 in 2008.
On an adjusted basis, first quarter operating income increased 1% to $59.1 million in 2009 from $58.7 million in 2008, and first quarter 2009 adjusted net income increased 9% to $40.3 million from $36.9 million in 2008. Adjusted diluted earnings per share increased to $0.20 in the first quarter 2009 from $0.18 in 2008.
QIAGEN's first quarter 2009 results include the results of operations from the Company's recent acquisitions, the most significant of which was Corbett Life Science, acquired in July 2008. Reconciliations of reported results determined in accordance with generally accepted accounting principles (GAAP) to adjusted results are included in the tables accompanying this release.
"QIAGEN experienced a successful start into 2009," said Peer Schatz, QIAGEN's Chief Executive Officer. "We saw strong revenue and adjusted net income growth and exciting momentum in our strategic position. We launched 20 new products in the area of Sample & Assay Technologies and recorded once again a record 5% of sales from products launched within the last 12 months. We are also managing an exceptionally strong pipeline of new products and are preparing for the launches of many strategically very important products during 2009. We feel very well prepared to take advantage of the growth opportunities we are seeing in our target markets today and are fully on track to achieve annual targets."
"We experienced strong revenue growth for QIAGEN in the first quarter of 2009 and maintain a positive outlook. Growth was highest in sales to customers in Molecular Diagnostics (approximately 46% of total revenues) followed by sales to customers in Applied Testing (7% of total revenues), Academia (27% of total revenues) and Pharma (20% of total revenues)."
"Growth of our sales to customers in Molecular Diagnostics was fueled by strong growth in sales of our screening products (primarily HPV), genetics (including our K-ras testing solutions) and infectious disease tests. In HPV screening, we experienced strong growth which was due to factors including successes of our ongoing market penetration initiatives. We are very pleased with these efforts in the United States and have now also created and intensified such programs in Europe and Asia. Our sales into customers in the Pharmaceutical and Biotech industry conducting clinical development continued strong, and sales to customers in these industries conducting discovery (under 10% of our sales) were, as expected, soft. We are very encouraged by the potential growth in the academic research markets following both the short term stimulus programs (primarily in the United States but also in many other countries) as well as the long-term funding increase commitments to several key and very large academic research institutions in the United States. QIAGEN is well prepared and uniquely positioned to support our customers and to jointly benefit from both the shorter-term stimulus programs and also from the planned long-term funding increases."
"We are also pleased with the progress in our development pipeline. We are preparing for the launches of various modules of our QIAensemble Evolution package, which will soon fully automate our gold standard HPV screening solutions. The developments of additional QIAsymphony medium throughput modules and its broad menu of applications and tests as well as the QIAensemble high throughput screening platform are also progressing well -- we expect a strong year in terms of new launches of Sample and Assay Technology products. We are also moving several products through clinical development in the US, Europe and Asia towards regulatory approvals."
"We are very pleased with our financial performance in this first quarter of 2009. Reported revenues were in line with, and adjusted earnings per share came in at the high end of our expectations," said Roland Sackers, QIAGEN's Chief Financial Officer. "Revenue growth for the first quarter was 7%. Using constant exchange rates for both quarters, revenue growth would have been 16% and was fueled by a strong organic growth of 11% and a positive contribution of 5% from acquisitions. Our consumable portfolio contributed 2% growth (10% at constant exchange rates). In the wake of new product introductions in QIAGEN's instrumentation business (such as the QIAsymphony, the QIAgility and the Rotor-Gene Q) this product area recorded a growth rate of 68% (93% at constant exchange rates). Net sales in the Americas for the first quarter 2009 represented approximately 51% of our overall business and recorded a growth rate of 12% at constant exchange rates while European sales, which represent approximately 34% of our revenues, showed a growth rate of 13% at constant exchange rates. Net sales in Asia remained strong, showing a growth rate of 23% at constant exchange rates."
QIAGEN -- Sample and Assay Technologies Highlights
* QIAGEN is supporting the management of the current H1N1 Influenza
A (swine flu) outbreak with effective surveillance solutions.
Such solutions include Sample Technologies and several Assay
Technologies such as real-time PCR assays (including our leading
artus Influenza screening test), QIAplex assays, a Pyrosequencing
platform as well as enzymes).
* QIAGEN established the QIAGENcares program to support regions in
need for effective diagnostic testing solutions and announced the
first two programs under this Corporate Social Responsibility
program:
-- QIAGEN and the Chittaranjan National Cancer Institute (CNCI)
formed a collaboration to establish the first large-scale
cervical cancer screening program for women in Kolkata, India.
The initiative will be conducted over 5 years and is expected
to reach 50,000 women.
-- QIAGEN will donate one million HPV tests over the next five
years.
* In the area of HPV testing, two landmark studies were published:
-- The New England Journal of Medicine (NEJM) published results
from an eight-year trial involving more than 130,000 women in
India. This landmark study demonstrates that in low-resource
settings a single round of HPV testing significantly reduces
the numbers of advanced cervical cancers and deaths, compared
with Pap (cytology) testing or visual inspection with acetic
acid (VIA). The trial used QIAGEN's digene HPV Test.
-- Physicians from Kaiser Permanente and the National Cancer
Institute published in the March issue of Obstetrics &
Gynecology results from their cervical cancer screening
program covering more than 580,000 women aged 30 and older
during 5 years and reported the following results:
- 90.8% HPV screening negative Pap negative
- 4.0% HPV screening positive Pap negative
- 2.3% HPV screening positive Pap positive
The study authors concluded, "In a general screening population,
concerns about excessive HPV test positives among women aged 30
years and older are not borne out." This conclusion is seen as a
great support to increase adoption of HPV testing in cervical
cancer screening programs.
* QIAGEN launched 20 new products in the area of Sample & Assay
Technologies including the PAXgene Blood miRNA kit for use in
cancer, biomarker and miRNA research and the QIAamp Circulating
Nucleic Acid kit for sample preparation in prenatal or other
circulating nucleic acid research. In addition, QIAGEN launched a
number of assay technologies including two multiplexed, PCR-based
digene HPV Genotyping Tests as RUOs with expected CE-marking to
be completed in the third quarter.
Conference Call and Webcast Details
Detailed information on QIAGEN's business and financial performance will be presented in its conference call on May 5, 2009 at 9:30 am ET. The corresponding presentation slides will be available for download on the Company's website at www.qiagen.com/goto/ConferenceCall. A webcast of the conference call will be available on the same website at www.qiagen.com/goto/ConferenceCall.
Use of Adjusted Results
QIAGEN has regularly reported adjusted results to give additional insight into its financial performance as well as considered results on a constant currencies basis. Adjusted results should be considered in addition to the reported results prepared in accordance with generally accepted accounting principles, but should not be considered as a substitute. The Company believes certain items should be excluded from adjusted results when they are outside of our ongoing core operations, vary significantly from period to period, or affect the comparability of results with the Company's competitors and our own prior periods. For further information on the nature of adjustments please refer to the reconciliation tables accompanying this press release.
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 sample and assay 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 first FDA-approved test for human papillomavirus (HPV), the primary cause of cervical cancer. QIAGEN employs more than 3,000 people in over 30 locations worldwide. Further information about QIAGEN can be found at www.qiagen.com.
The QIAGEN N.V. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3692
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 general economic conditions, 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. In addition, certain statements contained in this news release are based on company assumptions, including, but not limited, to revenue allocations based on business segments. 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)
(in thousands, except per share data)
Three months
ended March 31,
---------------------------
2009 2008
------------ ------------
Net sales $ 220,933 $ 207,106
Cost of sales 74,484 65,882
------------ ------------
Gross profit 146,449 141,224
------------ ------------
Operating expenses:
Research and development 25,643 21,369
Sales and marketing 56,098 54,078
General and administrative,
integration and other 23,788 29,088
Acquisition related intangible
amortization 3,891 3,651
------------ ------------
Total operating expenses 109,420 108,186
------------ ------------
Income from operations 37,029 33,038
------------ ------------
Other income (expense):
Interest income 1,185 2,972
Interest expense (7,431) (10,451)
Other income, net 1,781 2,135
------------ ------------
Total other expense (4,465) (5,344)
------------ ------------
Income before provision for income taxes
and minority interest 32,564 27,694
Provision for income taxes 7,880 7,301
Minority interest expense -- 60
------------ ------------
Net income $ 24,684 $ 20,333
============ ============
Weighted average number of diluted
common shares 203,168 205,126
Diluted net income per common
share $ 0.12 $ 0.10
Diluted net income per common
share, adjusted $ 0.20 $ 0.18
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
March 31, December 31,
2009 2008
(unaudited)
------------ ------------
Assets
Current Assets:
Cash and cash equivalents $ 337,036 $ 333,313
Accounts receivable, net 159,509 158,440
Income taxes receivable 9,752 14,441
Inventories, net 110,089 108,563
Prepaid expenses and other 67,192 61,424
Deferred income taxes 21,679 27,374
------------ ------------
Total current assets 705,257 703,555
------------ ------------
Long-Term Assets:
Property, plant and equipment, net 281,440 289,672
Goodwill 1,148,924 1,152,105
Intangible assets, net 620,005 640,309
Deferred income taxes 50,097 73,766
Other assets 26,650 25,916
------------ ------------
Total long-term assets 2,127,116 2,181,768
------------ ------------
------------ ------------
Total assets $ 2,832,373 $ 2,885,323
============ ============
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable $ 38,978 $ 48,836
Accrued and other liabilities 146,448 163,513
Income taxes payable 2,518 14,288
Current portion of long-term debt 25,000 25,000
Current portion of capital lease
obligations 2,976 2,984
Deferred income taxes 6,599 7,754
------------ ------------
Total current liabilities 222,519 262,375
------------ ------------
Long-Term Liabilities:
Long-term debt, net of current
portion 920,000 920,000
Capital lease obligations, net of
current portion 28,558 29,718
Deferred income taxes 188,456 212,589
Other 10,401 6,797
------------ ------------
Total long-term liabilities 1,147,415 1,169,104
------------ ------------
Shareholders' Equity:
Common shares, EUR .01 par value:
Authorized--410,000 shares
Issued and outstanding--198,276
shares in 2009 and 197,839
shares in 2008 2,218 2,212
Additional paid-in-capital 963,704 958,665
Retained earnings 502,496 477,812
Accumulated other comprehensive
(loss) income (5,979) 15,155
------------ ------------
Total shareholders' equity 1,462,439 1,453,844
------------ ------------
------------ ------------
Total liabilities and
shareholders' equity $ 2,832,373 $ 2,885,323
============ ============
QIAGEN N.V.
RECONCILIATION OF REPORTED TO ADJUSTED FIGURES
(unaudited)
Three months ended March 31, 2009
(dollars in thousands, except EPS data)
Net Gross Operating Pre-tax Income Net Diluted
Sales Profit Income Income Tax Income EPS*
-------- -------- ------- ------- --------- ------- -----
Reported
results $220,933 $146,449 $37,029 $32,564 $ (7,880) $24,684 $0.12
Adjustments:
Business
integration,
acquisition
related
and
restruc-
turing
costs -- 230 2,977 2,977 (888) 2,089 0.01
Purchased
intangibles
amortization -- 13,013 16,904 16,904 (5,906) 10,998 0.06
Share-based
compensation -- 209 2,188 2,188 (685) 1,503 0.01
Asset
impairment -- -- -- 1,572 (582) 990 --
-------- -------- ------- ------- --------- ------- -----
Total
adjustments -- 13,452 22,069 23,641 (8,061) 15,580 0.08
-------- -------- ------- ------- --------- ------- -----
Adjusted
results $220,933 $159,901 $59,098 $56,205 $(15,941) $40,264 $0.20
======== ======== ======= ======= ========= ======= =====
* Using 203,168 diluted shares
Three months ended March 31, 2008
(dollars in thousands, except EPS data)
Net Gross Operating Pre-tax Income Net Diluted
Sales Profit Income Income Tax Income EPS*
-------- -------- ------- ------- --------- ------- -----
Reported
results $207,106 $141,224 $33,038 $27,694 $ (7,301) $20,333 $0.10
Adjustments:
Business
integration,
acquisition
related and
restructuring
costs - - 9,185 9,185 (3,266) 5,919 0.03
Purchased
intangibles
amortization - 10,827 14,477 14,477 (5,173) 9,304 0.04
Share-based
compensation - 234 1,991 1,991 (665) 1,326 0.01
-------- -------- ------- ------- --------- ------- -----
Total
adjustments - 11,061 25,653 25,653 (9,104) 16,549 0.08
-------- -------- ------- ------- --------- ------- -----
Adjusted
results $207,106 $152,285 $58,691 $53,347 $(16,405) $36,882 $0.18
======== ======== ======= ======= ========= ======= =====
* Using 205,126 diluted shares