QIAGEN Reports Solid Second Quarter 2010 Results
Qiagen N.V. / QIAGEN Reports Solid Second Quarter 2010 Results processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
* 11% Revenue growth at constant exchange rates
* 10% Organic growth excluding H1N1 related effects
* 25% Net income growth
* $0.22 Adjusted EPS
Venlo, The Netherlands, August 9, 2010 - QIAGEN N.V. (Nasdaq: QGEN; Frankfurt,
Prime Standard: QIA) today announced the results of operations for the second
quarter and the six-month period ended June 30, 2010.
The reported net sales for the second quarter 2010 were in line with, and
adjusted earnings per share were at the high end of, the Company's quarterly
expectations as provided on May 4, 2010.
Second Quarter 2010 Results
+----------------------------------------------------------------------------+
| QIAGEN's Second Quarter 2010 Â Â Â |
+----------------------------------------------------------------------------+
| in US$ millions, except per share information Q2 2010 Q2 2009 Growth |
+----------------------------------------------------------------------------+
| Â Â Â Â |
| |
| Net sales 262.7 240.2 9% |
| |
| Net sales at constant exchange rates 265.9 240.2 11% |
| |
| Net income 38.5 30.9 25% |
| |
| Net income, adjusted 52.5 48.3 9% |
| |
| EPS, adjusted( )(US$) 0.22 0.24 Â |
| |
| Â Â Â Â |
+----------------------------------------------------------------------------+
For information on the adjusted figures, please refer to the reconciliation
table accompanying this release.
The Company reported that consolidated net sales for its second quarter 2010
increased 9% to $262.7 million from $240.2 million in the same quarter of 2009.
Excluding the unfavorable impact from foreign currency exchange rates, net sales
for the second quarter 2010 would have increased 11% from the second quarter
2009. Reported operating income for the quarter decreased 9% to $42.8 million
from $46.9 million in the same quarter of 2009, and net income for the quarter
increased 25% to $38.5 million from $30.9 million in the same quarter of 2009.
Diluted earnings per share for the second quarter increased to $0.16 in 2010
(based on 241.6 million weighted average shares and share equivalents
outstanding) from $0.15 in 2009 (based on 203.8 million weighted average shares
and share equivalents outstanding).
Second quarter adjusted operating income increased 2% to $73.1 million in 2010
from $71.8 million in 2009, and second quarter 2010 adjusted net income
increased 9% to $52.5 million from $48.3 million in 2009. Adjusted diluted
earnings per share decreased to $0.22 in 2010 from $0.24 in 2009. These figures
are adjusted for business integration, acquisition related and restructuring
costs, a one-time tax benefit, purchased intangibles amortization and share
based compensation.
Six-Month Period 2010 Results
For the six-month period ended June 30, 2010, net sales increased 14% to $527.1
million compared to $461.1 million in the respective period of 2009. Operating
income as reported for the six months ended June 30, 2010 increased 4% to $87.5
million from $83.9 million for the same period in 2009. Net income increased
29% to $71.5 million from $55.6 million in 2009, and diluted earnings per share
increased to $0.30 in 2010 from $0.27 in 2009.
On an adjusted basis, operating income for the six-month period ended June
30, 2010 increased 12% to $146.7 million in 2010 from $130.9 million in 2009,
and adjusted net income increased 15% to $101.9 million from $88.5 million.
Adjusted diluted earnings per share in the six months ended June 30, 2010
decreased to $0.42 per share from $0.44 per share in the same period of 2009.
QIAGEN's second quarter and six-month period 2010 results include the results of
operations from the Company's recent acquisitions, the most significant of which
were SABiosciences Corporation, acquired in December 2009 and DxS Ltd., acquired
in September 2009. 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 second quarter," said Peer Schatz, QIAGEN's
Chief Executive Officer. "We met our quarterly revenue expectations as
communicated in our previous quarterly conference call and came in on the high
end of our adjusted EPS expectations. Our markets remain stable across our
customer segments and show promising growth opportunities.
"We achieved a substantial increase in product sales to our customers in
molecular diagnostics, applied markets, the pharmaceutical industry and in
academia and remain very well prepared to exploit further growth opportunities
in our target markets.
"Molecular diagnostics remains our strongest revenue driver even when
considering the impacts related to swine flu testing in 2009. The market for our
profiling assays and solutions remains very solid. The market for our prevention
assays (primarily HPV screening), continues to benefit from our market adoption
initiatives in the United States despite what is believed to be a temporary
extension of doctor visit intervals. Anticipated future healthcare policies and
reimbursement schemes world-wide promise a healthy outlook for this market
segment. The applied testing markets show excellent growth opportunities. Our
recent addition of more than 70 new food safety tests to our assay technologies
portfolio and the addition of a portfolio of forensic assays position QIAGEN for
further strong growth in the applied testing customer class. In the
pharmaceutical industry we observed a continuing trend to focus on our sample
and assay solutions that enable molecular selection, guidance, progression and
recurrence during the drug development process. With our portfolio of sample and
assay technologies and our broad portfolio of instrument platforms we believe we
are well positioned to address the needs coming with molecular based drug
development. In addition we recently launched our new SABiosciences portfolio
through our QIAGEN sales channels, thereby enabling pharmaceutical and academic
partners to advance biomarker discovery and research.
"We feel very well prepared to take advantage of the growth opportunities in our
target markets and are on track to achieve our annual targets."
"We are pleased with our financial performance in this second quarter of 2010.
Reported revenues met, and adjusted earnings per share were at the high end of,
our expectations for the second quarter of 2010 as set in our most recent
quarterly conference call in early May," said Roland Sackers, QIAGEN's Chief
Financial Officer. "Revenue growth for the second quarter was 9% (11% under
constant exchange rates). Organic growth excluding H1N1 related revenues was
strong at 10% and we realized a positive contribution from acquisitions of 7%.
"Our consumable portfolio represented approximately 85% of our total net sales
and contributed approximately 10% growth at constant exchange rates. QIAGEN's
instrumentation products represented approximately 14% of our total net sales
and grew with approximately 10% at constant exchange rates. The largest revenue
share we recorded in the second quarter 2010 was in sales to customers in
molecular diagnostics (approximately 47% of total revenues) followed by sales to
customers in academia (approximately 24% of total revenues), in the
pharmaceutical industry (approximately 22% of total revenues) and in applied
testing markets (approximately 7% of total revenues).
"We are reiterating our guidance for the fiscal year 2010. Based on foreign
currency exchange rates as of January 31, 2010, this guidance targets revenues
between $1,120 and $1,170 million and adjusted diluted earnings per share
between $0.90 and $0.96. The guidance on EPS, adjusted does not include a
negative contribution for 2010 of approximately US$0.01 from the acquisition of
all rights to a portfolio of molecular food safety tests developed by the
Institute for Product Quality (ifp) in May 2010."
QIAGEN - Sample and Assay Technologies Highlights
* QIAGEN extended its development agreement with Genome Diagnostics targeting
the development and commercialization of a series of new assays to detect
genetic variations in the so called Human Leukocyte Antigen (HLA) complex.
These assays are increasingly used in personalized healthcare (PHC). The
assays will include tests based on QIAGEN's proprietary "Pyrosequencing"
technology which enables fast, cost effective and accurate analysis of HLA
sequences, and allows for direct detection of previously unknown
polymorphisms. QIAGEN believes that this collaboration will further expand
the Company's testing portfolio for the early detection of diseases and
individualized treatment of patients - thereby strengthening QIAGEN's
molecular diagnostics offering for applications in prevention and
personalized healthcare (PHC).
* QIAGEN acquired all rights to a portfolio of 70 molecular food safety tests
developed by the Institute for Product Quality (ifp). The tests are based on
real-time PCR (Polymerase Chain Reaction) technology and cover a broad range
of molecular targets including genetic, bacterial, viral and other
contaminants of food products. The tests can be fully automated using
QIAGEN's instrument platforms such as the QIAsymphony and the Rotor-Gene Q.
The transaction enables QIAGEN to offer complete solutions for all major
applications in the food safety testing segment, covering entire workflows
from the processing of primary samples to the final testing result. The
first test kits are expected to be available through QIAGEN in the fourth
quarter of 2010.
* QIAGEN added a range of Human Identity (HID) PCR assays for human identity
testing applications in forensics to its assay technologies portfolio
through the acquisition of various assets from a leading forensics assay
supplier in Europe. Our new human ID assay portfolio includes IP, know-how
and co-exclusive rights to innovative software suites for analysis of STR
genotyping data. The assay portfolio features comprehensive coverage of
international STR (short tandem repeat) marker standards, including the new
European Standard Set (ESS) as defined by the Council of the European Union
in the effort to harmonize Europe's national DNA databases.
* QIAGEN announced a donation of one million HPV tests to low-income countries
over five years, following the April 2009 publication of study results in
The New England Journal of Medicine. The control group in the study had no
screening, which is the standard of care in many parts of India. From the
company's "one million test" donation program, QIAGEN allocated first
grants, including a donation of approximately 26,000 human papillomavirus
(HPV) tests to the Nargis Dutt Memorial Cancer Hospital in India for
cervical cancer screening.
* QIAGEN completed the European certification of its careHPV(TM) Test to bring
human papillomavirus (HPV) testing to public-health programs in
low-resource, developing countries. The CE conformity marking ("Conformité
Européenne") certifies that the careHPV Test has met European Union consumer
safety and health requirements, allowing the test to be distributed in
developing countries that recognize the CE mark.
* QIAGEN launched 19 new products/product groups in the area of Sample & Assay
Technologies including the SABiosciences portfolio for gene and pathway
analysis as well as a number of molecular diagnostic assays including a
CE-labeled artus real time PCR assay for the detection of the Herpes-Simplex
virus and the EASYartus PCR assay for the detection of the Cytomegalus
virus.
Conference Call and Webcast Details
Detailed information on QIAGEN's business and financial performance will be
presented during its conference call on August 10, 2010 at 9:30am 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 also be available 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 its ongoing core
operations, vary significantly from period to period, or affect the
comparability of results with the Company's competitors and its own prior
periods. Reconciliations of reported results to adjusted results are included in
the tables accompanying this 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 these 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 3,500 people in over 30 locations worldwide. Further information about
QIAGEN can be found at
http://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, including without limitation its expected operating results, are
forward-looking, such statements are based on current expectations and
assumptions 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, regulatory processes and dependence on logistics), variability of
operating results and allocations between business segments, the commercial
development of markets for our products in applied testing, personal healthcare,
clinical research, proteomics, women's health/HPV testing, nucleic acid-based
molecular diagnostics, and genetic vaccination and gene therapy, 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 and protect 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
ended u e 30,
(in US$ thousands, except per share data)
--------------------
   2010  2009
---------- ---------
Net sales  262,718  240,156
 Cost of sales  89,912  80,656
---------- ---------
Gross profit  172,806  159,500
---------- ---------
Operating expenses:
 Research and development  29,423  24,950
 Sales and marketing  66,255  59,039
 General and administrative, integration and other  28,438  24,618
 Acquisition-related intangible amortization  5,840  4,011
---------- ---------
Total operating expenses  129,956  112,618
---------- ---------
Income from operations  42,850  46,882
---------- ---------
Other income (expense):
 Interest income  1,501  678
 Interest expense   (7,669)   (7,302)
 Other income, net  2,858  778
---------- ---------
Total other expense   (3,310)   (5,846)
---------- ---------
Income before provision for income taxes  39,540  41,036
Provision for income taxes  1,020  10,107
---------- ---------
Net income  38,520  30,929
 Weighted average number of diluted common shares  241,636  203,785
 Diluted net income per common share   $ 0.16   $ 0.15
 Diluted net income per common share, adjusted   $ 0.22   $ 0.24
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
   Six months
ended u e 30,
(in US$ thousands, except per share data)
----------------------
   2010  2009
----------- ----------
Net sales  527,082  461,089
 Cost of sales  181,064  155,140
----------- ----------
Gross profit  346,018  305,949
----------- ----------
Operating expenses:
 Research and development  61,021  50,593
 Sales and marketing  130,690  115,137
 General and administrative, integration and other  54,778  48,406
 Acquisition-related intangible amortization  11,998  7,902
----------- ----------
Total operating expenses  258,487  222,038
----------- ----------
Income from operations  87,531  83,911
----------- ----------
Other income (expense):
 Interest income  2,190  1,863
 Interest expense   (13,923)   (14,732)
 Other income, net  5,093  2,558
----------- ----------
Total other expense   (6,640)   (10,311)
----------- ----------
Income before provision for income taxes  80,891  73,600
Provision for income taxes  9,358  17,987
----------- ----------
Net income  71,533  55,613
 Weighted average number of diluted common shares  241,780  203,476
 Diluted net income per common share   $ 0.30   $ 0.27
 Diluted net income per common share, adjusted   $ 0.42   $ 0.44
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in US$ thousands, except par value) Â June 30, Â December 31,
     2010  2009
--------------- --------------
Assets   (unaudited)
Current Assets:
 Cash and cash equivalents      844,209      825,557
 Short-term investments       74,000       40,000
 Accounts receivable, net      189,958      193,737
 Income taxes receivable       14,714       12,907
 Inventories, net      117,808      130,851
 Prepaid expenses and other        80,456       96,893
 Deferred income taxes       31,605       33,525
--------------- --------------
   Total current assets     1,352,750     1,333,470
--------------- --------------
Long-Term Assets:
 Property, plant and equipment, net      303,381      317,467
 Goodwill     1,316,955     1,337,064
 Intangible assets, net      713,664      752,296
 Deferred income taxes       29,202       26,387
 Other assets       51,833       29,780
--------------- --------------
   Total long-term assets     2,415,035     2,462,994
--------------- --------------
--------------- --------------
  Total assets     3,767,785     3,796,464
Liabilities and Shareholders' Equity
Current Liabilities:
 Accounts payable       49,007       43,775
 Accrued and other liabilities      188,653      248,699
 Income taxes payable       13,672       10,727
 Current portion of long-term debt       50,977       50,000
 Current portion of capital lease obligations        3,346        3,417
 Deferred income taxes       16,356       18,912
--------------- --------------
   Total current liabilities      322,011      375,530
--------------- --------------
Long-Term Liabilities:
 Long-term debt, net of current portion      871,783      870,000
 Capital lease obligations, net of current       24,353       27,554
portion
 Deferred income taxes      201,877      212,690
 Other liabilities       13,218       19,521
--------------- --------------
   Total long-term liabilities     1,111,231     1,129,765
--------------- --------------
Shareholders' Equity:
 Common shares, EUR .01 par value:
  Authorized--410,000 shares
  Issued and outstanding--232,703 shares
   in 2010 and 232,074 shares in 2009        2,720        2,711
  Additional paid-in-capital     1,637,656     1,622,733
  Retained earnings      687,112      615,579
  Accumulated other comprehensive income        7,055       50,146
--------------- --------------
   Total shareholders' equity     2,334,543     2,291,169
--------------- --------------
--------------- --------------
  Total liabilities and shareholders' equity     3,767,785     3,796,464
QIAGEN N.V.
RECONCILIATION OF REPORTED TO ADJUSTED FIGURES
(unaudited)
Three months ended June 30, 2010
(in US$ millions, except EPS data)
  Gross Operating Pre-tax Income Net Diluted
Net Sales Profit Income Income Tax Income EPS*
----------------------------------------------------------------
Reported results 262.7 172.8 42.8 39.5 (1.0) 38.5 Â $ 0.16
Adjustments:
Business
integration,
acquisition
related and
restructuring
costs and tax
benefit from
 restructuring - -       5.5 5.5 (7.7) (2.2)  (0.01)
Purchased
intangibles
 amortization -  15.3      21.1 21.1 (7.5) 13.6 0.06
Share-based
 compensation - 0.3       3.7 3.7 (1.1) 2.6 0.01
----------------------------------------------------------------
Total
 adjustments - 15.6      30.3 30.3 (16.3) 14.0  0.06
----------------------------------------------------------------
Adjusted results 262.7 188.4 73.1 69.8 (17.3) 52.5 Â $ 0.22
*Â Using 241.6 M diluted shares
Three months ended June 30, 2009
(in US$ millions, except EPS data)
  Gross Operating Pre-tax Income Net Diluted
Net Sales Profit Income Income Tax Income EPS*
----------------------------------------------------------------
Reported results 240.2 159.5 46.9 41.0 (10.1) 30.9 Â $ 0.15
Adjustments:
Business
integration,
acquisition
related and
restructuring
 costs - 0.3       4.9 4.9 (1.6) 3.3 0.02
Purchased
intangibles
 amortization - 13.2      17.2 17.2 (6.0) 11.2 0.06
Share-based
 compensation - 0.2       2.8 2.8 (0.8) 2.0 0.01
Acquisition
related
write-off of
prepaid
 expenses - -         - 1.2 (0.3) 0.9 -
----------------------------------------------------------------
Total                   24.9
 adjustments - 13.7 26.1 (8.7) 17.4 0.09
----------------------------------------------------------------
Adjusted results 240.2 173.2 71.8 67.1 (18.8) 48.3 Â $ 0.24
*Â Using 203.8 M diluted shares
QIAGEN N.V.
RECONCILIATION OF REPORTED TO ADJUSTED FIGURES
(unaudited)
Six months ended June 30, 2010
(in US$ millions, except EPS data)
Net Gross Operating Pre-tax Net Diluted
  Sales Profit Income Income Income Tax Income  EPS*
----------------------------------------------------------------
       $
Reported results 527.1 346.0 87.5 80.9 (9.4) 71.5 Â 0.30
Adjustments:
Business
integration,
acquisition
related and
restructuring
costs and tax
benefit from
 restructuring - 0.8 10.5 10.5 (12.0) (1.5)  (0.01)
Purchased
intangible
 amortization - 30.4 42.4 42.4 (15.0) 27.4   0.11
Share-based
 compensation - 0.4 6.3 6.3 (1.8) 4.5   0.02
----------------------------------------------------------------
Total
 adjustments - 31.6 59.2 59.2 (28.8) 30.4   0.12
----------------------------------------------------------------
           $
Adjusted results 527.1 377.6 146.7 140.1 (38.2) 101.9 Â 0.42
*Â Using 241.8 M diluted shares
Six months ended June 30, 2009
(in US$ millions, except EPS data)
Net Gross Operating Pre-tax Net Diluted
  Sales Profit Income Income Income Tax Income  EPS*
----------------------------------------------------------------
      $
Reported Results 461.1 305.9 83.9 73.6 (18.0) 55.6 Â 0.27
Adjustments:
 Business
integration,
acquisition
related and
restructuring
costs -Â 0.5 7.9 7.9 (2.5) 5.4 Â Â 0.03
 Purchased
intangible
amortization -Â 26.2 34.1 34.1 (11.9) 22.2 Â Â 0.11
Share-based
 compensation - 0.5 5.0 5.0   (1.5)   3.5   0.02
 Acquisition
related
write-off of
prepaid
expenses and
other asset
impairment -Â -Â -Â 2.7 (0.9) 1.8 Â Â 0.01
----------------------------------------------------------------
 Total
adjustments -Â 27.2 47.0 49.7 Â Â Â Â (16.8) 32.9 Â Â 0.17
----------------------------------------------------------------
Adjusted results            $
461.1 333.1 130.9 123.3 (34.8) 88.5 Â 0.44
*Â Using 203.5 M diluted shares
Contacts:
Dr. Solveigh Mähler Dr. Thomas Theuringer
Director Investor Relations Director Public Relations
QIAGEN N.V. QIAGEN N.V.
+49 2103 29 11710 +49 2103 29 11826
e-mail:solveigh.maehler@qiagen.com e-mail:thomas.theuringer@qiagen.com
Albert F. Fleury
Director Corporate Finance
and Investor Relations North America
QIAGEN N.V.
+1 301 944 7028
e-mail:albert.fleury@qiagen.com
[HUG#1436757]
--- End of Message ---
Qiagen N.V.
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