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Quidel Corporation Announces First Quarter Results
SAN DIEGO, April 26 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL), a leading provider of point-of-care rapid diagnostic tests, announced today the financial results for the first quarter ended March 31, 2001. Net sales for the first quarter ended March 31, 2001 were $19.5 million compared to $21.7 million for the first quarter ended March 31, 2000. Net sales for the first quarter, 2001 were 6% above the fourth quarter ended December 31, 2000 but below the first quarter last year due to the unusually high sales levels during that time associated with the withdrawal of Abbott Diagnostics' products from the market.
Quidel's pre-tax earnings for the first quarter ended March 31, 2001 were $1.1 million or $0.04 per share, on a fully diluted basis, compared to $1.7 million or $0.06 per share, on a fully diluted basis, for the first quarter ended March 31, 2000. Excluding restructuring charges, Quidel's pre-tax earnings for the current quarter were $1.7 million or $0.06 per share. Net earnings, after provision for income tax expense (non-cash), for the first quarter ended March 31, 2001 were $0.4 million or $0.01 per share, on a fully diluted basis, as compared to a loss of $0.1 million or $0.01 loss per share, on a fully diluted basis, for the first quarter ended March 31, 2000.
"We are pleased to report a second consecutive quarter of profitability from operations," said Andre de Bruin, Vice Chairman and CEO. "Many of the investments we have made in both new product offerings and improvements to our infrastructure have begun to have an impact. Our manufacturing systems have stabilized, backorders were eliminated and gross margins improved during the quarter. Despite the milder flu season, we are pleased to have recorded sales close to $20 million with our new products contributing significantly to the top line."
"Equally important is the ongoing integration of Litmus Concepts into the Quidel organization," added de Bruin. "Not only have we made significant progress combining Litmus personnel into Quidel's operations, we have also increased our research and development investments in the newly acquired Layered Thin Film (LTF) technology. We believe our LTF product portfolio will, over time, redefine the way rapid diagnostic testing outside the hospital is performed. Quidel's existing, strong market presence along with the substantial intellectual property surrounding the LTF technology should create a distinct advantage for Quidel in the marketplace."
During the first quarter of 2001, both pre-tax and net earnings were impacted by a restructuring charge of $0.6 million related to the reduction of personnel associated with acquisition activities in 2000 and the closure of the United Kingdom subsidiary. The net loss for the first quarter ended March 31, 2000 was impacted by a $1.1 million charge related to a change in accounting principle due to the adoption of the Securities and Exchange Commission, Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements, with the cumulative effect reported in that quarter.
Quidel's senior management will discuss the Company's first quarter results with investors and analysts on a conference call this morning, beginning at 10:00a.m. EST. To participate, please call 1-212-896-6078. If you are unable to participate in the conference, a replay is available today at 12 p.m. EST through April 28, 2001 at 12 p.m., by calling 1-800-633-8284, reservation number, 18630467. In addition, a webcast of the call will be available for 30 days at:
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, infectious mononucleosis, and bacterial vaginosis. Quidel's products are sold to healthcare professionals for use in physicians' 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 (both domestically and internationally) 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 report on Form 10-K. For more information, please visit Quidel's web site at http://www.quidel.com.
QUIDEL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three months ended March 31, 2001 2000 Net sales $19,544 $21,664 Cost of sales 8,994 10,514 Gross profit 10,550 11,150 Research and development 1,533 1,792 Sales and marketing 4,102 4,748 General and administrative 2,221 2,208 Restructuring 550 -- Amortization of intangibles 1,103 632 Total operating expenses 9,509 9,380 Income from operations 1,041 1,770 Research contract, license and royalty income (398) (314) Interest expense 337 51 Interest income (11) (10) Other 11 350 Total other (income) expense (61) 77 Earnings before income taxes and cumulative effect of change in accounting principle 1,102 1,693 Income tax expense (685) (768) Earnings before cumulative effect of change in accounting principle 417 925 Cumulative effect of January 1, 2000 change in accounting principle for adoption of SAB 101 -- (1,068) Net earnings (loss) $417 $(143) Earnings per share before income taxes and cumulative effect of change in accounting principle - basic $0.04 $0.07 Earnings per share before income taxes and cumulative effect of change in accounting principle - diluted $0.04 $0.06 Earnings per share before cumulative effect of change in accounting principle - basic $0.01 $0.04 Earnings per share before cumulative effect of change in accounting principle - diluted $0.01 $0.03 Cumulative effect of change in accounting principle per share - basic and diluted $-- $(0.05) Net earnings (loss) per share - basic and diluted $0.01 $(0.01) Weighted shares used in basic per share calculation 28,124 24,404 Weighted shares used in diluted per share calculation 29,038 26,703 EBITDA (earnings before interest, taxes, depreciation, amortization and change in accounting principle) $3,662 $3,814 EBITDA per share - basic 0.13 0.16 EBITDA per share - diluted 0.13 0.14 Gross profit as a % of net sales 54% 51% Research and development as a % of net sales 8% 8% Sales and marketing as a % of net sales 21% 22% General and administrative as a % of net sales 11% 10% Balance sheet data: 3/31/01 12/31/00 Cash and cash equivalents $3,227 $1,901 Working capital 11,893 10,024 Total assets 80,371 82,032 Long term obligations 10,649 10,729 Stockholders' equity 58,460 58,307
Sharon Platt, Investor Relations Associate of Quidel Corporation, 858-552-7955;
or Matthew Orsagh of Noonan-Russo Communications, 212-696-4455, ext. 357, for Quidel Corporation