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Quidel Reports Financial Results for the Quarter and Year Ended December 2000
SAN DIEGO, Feb. 15 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) announced today its financial results for the fourth quarter and year ended December 31, 2000. For the quarter ended December 31, 2000, net product sales of $18.5 million exceeded the net product sales of $16.8 million reported for the December 31 quarter of the prior year, setting a new record. The net earnings for the quarter, excluding a $2.3 million charge associated with acquired in-process research and development from the Litmus Concepts, Inc. acquisition consummated during the fourth quarter were $0.5 million. Including this charge, the Company reported a net loss of $1.8 million or $.07 per share, both basic and diluted.
For the year ended December 31, 2000, net product sales of $68.4 million exceeded the prior year product sales of $52.2 million, an increase of 31% year over year, and also a record net sales amount. The net loss for the year, excluding the aforementioned charge and change in accounting principle described below, was a loss of $2.5 million. The net loss including these charges was $5.8 million or $.24 per share, both basic and diluted, compared to net income of $5.9 million or $.24 per share, diluted, for the year ended December 31, 1999. The net earnings for 1999 included a deferred tax benefit of $6.6 million and an extraordinary loss of $.9 million. Excluding these items, the net earnings would be $.2 million.
Quidel adopted the provisions of U.S. Securities and Exchange Commission's Staff Accounting Bulletin No. 101 (SAB 101) on Revenue Recognition with the cumulative effect reported as of January 1, 2000. As a result of this adoption, the Company recorded a charge of $1.1 million representing the cumulative effect of a change in accounting principle.
"The year 2000 was a challenging one for Quidel," said Andre de Bruin, Vice-Chairman and CEO. "While we are pleased with several important accomplishments during the year, we were faced with supply shortages throughout the year that curtailed sales and decreased gross margins. We believe we have now addressed these issues as is evidenced by our record fourth quarter product sales. The launch in the USA of our QuickVue(R) UrinChek(TM) urinalysis product line and CLIA waiver of our QuickVue(R) Influenza test were important events in 2000 that we expect will have a major positive impact on revenues in the years ahead. Additionally, we believe the acquisition of Litmus Concepts provides for an exciting, proprietary, new technology platform with tremendous strategic upside for Quidel."
Quidel's senior management will discuss the Company's fourth quarter and year end with investors and analysts on a conference call this morning, beginning at 10:00 a.m. EST. To participate, please call 1-212-271-4623. If you are unable to participate in the conference, a replay is available today at 12 p.m. EST through February 17, 2001 at 12 p.m., or by calling 1-800-633-8284, reservation number, 17910917. In addition, a webcast of the call will be available for 30 days at:
http://webcast.themeeetingson.com/webcast.jsp reservation 17910917.
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 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 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 and subsequent quarterly reports on Form 10-Q. 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 Twelve months ended December 31, December 31, 2000 1999 2000 1999 (Unaudited) (Unaudited) Net sales $18,504 $16,750 $68,351 $52,204 Cost of sales 10,479 8,150 36,503 27,059 Gross profit 8,025 8,600 31,848 25,145 Research and development 1,174 1,556 7,046 7,070 Sales and marketing 3,189 5,215 16,341 14,390 General and administrative 2,901 1,793 8,845 6,024 Acquired in-process research and development 2,300 -- 2,300 820 Amortization of intangibles 483 281 1,981 755 Total operating expenses 10,047 8,845 36,513 29,059 Loss from operations (2,022) (245) (4,665) (3,914) Research contract, license and royalty income (208) (1,716) (1,048) (4,315) Interest expense 265 322 1,164 744 Interest income (17) (139) (86) (536) Other (281) -- 83 -- Total other (income) expense (241) (1,533) 113 (4,107) Earnings (loss) before income taxes, extraordinary item and cumulative effect of change in accounting principle (1,781) 1,288 (4,778) 193 Income tax benefit -- -- -- 6,575 Earnings (loss) before extraordinary item and cumulative effect of change in accounting principle (1,781) 1,288 (4,778) 6,768 Extraordinary loss from early extinguishment of debt -- (891) -- (891) Cumulative effect of January 1, 2000 change in accounting principle for adoption of SAB 101 -- -- (1,068) -- Net earnings (loss) $(1,781) $397 $(5,846) $5,877 Earnings (loss) before extraordinary item and cumulative effect of change in accounting principle per share - basic $(0.07) $0.05 $(0.19) $0.28 Earnings (loss) before extraordinary item and cumulative effect of change in accounting principle per share - diluted $(0.07) $0.05 $(0.19) $0.28 Extraordinary loss from early extinguishment of debt per share - basic $-- $(0.04) $-- $(0.04) Extraordinary loss from early extinguishment of debt per share - diluted $-- $(0.04) $-- $(0.04) Cumulative effect to January 1, 2000 of change in accounting principle for adoption of SAB 101 per share - basic $-- $-- $(0.04) $-- Cumulative effect to January 1, 2000 of change in accounting principle for adoption of SAB 101 per share - diluted $-- $-- $(0.04) $-- Net earnings (loss) per share - basic $(0.07) $0.02 $(0.24) $0.25 Net earnings (loss) per share - diluted $(0.07) $0.02 $(0.24) $0.24 Weighted shares used in basic per share calculation 24,842 23,895 24,670 23,841 Weighted shares used in diluted per share calculation 24,842 25,392 24,670 24,167 Unaudited: EBITDA (earnings before interest, taxes, depreciation, amortization and effects of acquired in-process research and development, extraordinary item and change in accounting principle) $2,407 $3,637 $6,165 $6,103 EBITDA per share - basic 0.10 0.15 0.25 0.26 EBITDA per share - diluted 0.09 0.14 0.23 0.25 Gross profit as a % of net sales 43% 51% 47% 48% Research and development as a % of net sales 6% 9% 10% 14% Sales and marketing as a % of net sales 17% 31% 24% 28% General and administrative as a % of net sales 16% 11% 13% 12% Balance sheet data: 12/31/00 12/31/99 Cash and cash equivalents $1,901 $4,672 Working capital 9,369 12,483 Total assets 82,032 68,040 Long term obligations 10,074 11,429 Stockholders' equity 58,307 43,755
Sharon Platt, Investor Relations Associate of Quidel Corporation, 858-552-7955;
or Antoinette Ongg of Noonan-Russo Communications for Quidel Corporation, 212-696-4455 ext. 242