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Quidel Comments on Earnings Outlook and Milestone Payment From Sumitomo
SAN DIEGO, Feb. 1 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) announced today that earnings for the quarter ended December 31, 1999, are expected to be between $.01 to $.03 per share. Quarterly results were impacted by the investments made to initiate the market launch of its QuickVue(R) Influenza Test, to acquire the Dade Behring urinalysis business, as well as to add staffing associated with the ramp up of production to a 24 hour, 7 days per week shift operation to meet increased demand. In addition, a non-recurring one-time mortgage prepayment penalty associated with the sale and leaseback of the corporate headquarters will be recorded in the quarter.
"Due to the fact that we are in the midst of our new fiscal year-end audit, when in the past, earnings would have already been announced, we are communicating these significant events impacting our business ahead of the release of audited earnings," said Andre de Bruin, Chief Executive Officer and President of Quidel.
"We are experiencing a substantial increase in our customer order rate in our core business," de Bruin continued. "During the month of December, we decided to make fairly significant unbudgeted investments in an effort to accommodate this increase and to accelerate the growth of some of our new businesses in the new fiscal year 2000."
The company also announced that it would show a $1 million one-time milestone payment from Sumitomo Pharmaceuticals Co. Ltd. in the quarter's results.
"The milestone payment from Sumitomo is significant in that if reflects reimbursement approval for our Metra bone markers in Japan," said de Bruin.
Quidel Corporation discovers, develops, manufactures and markets point-of-care, rapid diagnostic tests for detection of medical conditions and illnesses. These products provide accurate, rapid and cost-effective diagnostic information for acute and chronic conditions that affect women's health throughout the phases of their lives including reproductive status, pregnancy management and osteoporosis. Quidel also provides point-of-care diagnostics for infectious diseases, including influenza A and B, strep throat, H. pylori infection, chlamydia and infectious mononucleosis. Quidel's products are sold to healthcare professionals for use in physician's offices, clinical laboratories and pharmacies, and to consumers through organizations that provide private label, store brand products. These tests provide diagnostic information to enable rapid treatment and improve health outcomes, lower costs, and increase patient satisfaction.
This press release contains forward-looking statements regarding Quidel's future activities within the meaning of the federal securities laws. These forward-looking statements involve material risks and uncertainties. Many possible factors could affect the future results and performance of Quidel's products, such that actual results and performance may differ materially. If Quidel's products fail to perform as expected, or if there is lower consumer demand for these products than expected, Quidel's financial condition and operating results may be materially and adversely affected. Quidel's financial condition and operating results may also be materially and adversely affected by a number of other factors, including, without limitation, seasonality, adverse changes in competitive and economic conditions, actions by the Company's distributors, manufacturing and production delays or difficulties and adverse actions or delays in product reviews by the FDA. Please see the discussion of these and other factors in Quidel's annual reports on Form 10-K and subsequent quarterly reports on Form 10-Q. For more information, please visit Quidel's web site at http://www.quidel.com.
A CONFERENCE CALL IS SCHEDULED FOR February 1, 2000 at 1:30 p.m. PST/4:30 p.m. EST TO DIAL IN, PLEASE CALL: 888-222-2994
Charles J. Cashion, Chief Financial Officer, 858-552-7962,
or Margaret Kuhn, Director, Investor Relations, 858-646-8031,
both of Quidel Corporation