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Quidel Reports First Quarter Fiscal Year 2000 Financial Results
SAN DIEGO, July 22 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) today announced its financial results for the first fiscal quarter ended June 30, 1999. The net income for the quarter was $485,000, or $.02 per share, compared to a net income of $18,000 for the quarter ended June 30, 1998. The net income for the quarter included a provision for income taxes of $323,000 while no provision was recorded in the first quarter of the prior year. The increase in net income for the quarter is the result of an 8% increase in product sales to $10.6 million for the three months ended June 30, 1999, as compared to $9.8 million in the first quarter of the prior year. In addition, Administration and Research and Development spending declined by 12% and 23% respectively, compared to the prior year.
Operating income for the three months ended June 30, 1999 was $841,000, compared to an operating loss of $48,000 in the prior year. Included in the results of operations for the quarter ended June 30, 1998 were charges of $420,000 associated with the closure of certain European subsidiaries. During the quarter ended June 30, 1999, the Company began to charge earnings with a standard provision for income taxes although only minimum payments are required due to the utilization of prior tax loss carryforwards.
"We are pleased to report improved profit for the quarter and a 20% increase in U.S. product sales," said Andre de Bruin, vice chairman, president and chief executive officer of Quidel Corporation. "We are beginning to see the results of the restructuring activities that took place during the prior year. While there are many challenges ahead of us, we intend to manage the business to provide increased profits for our stockholders and, at the same time, will continue to pursue growth opportunities such as the recent acquisition of Metra Biosystems, Inc. and its osteoporosis diagnostic product line. The acquisition costs associated with the Metra purchase will likely result in a loss for the second quarter, although the transaction is still expected to be accretive to earnings for the entire fiscal year."
Quidel Corporation discovers, develops, manufacturers and markets point-of-care rapid diagnostics for women's health and infectious diseases. These products provide simple, accurate and cost-effective diagnoses for acute and chronic conditions. Quidel's products are sold to professionals in the physician's office and clinical laboratory, and to consumers through organizations that provide private label, store brand products. For more information on Quidel, please visit the web site at http://www.quidel.com.
This press release contains forward-looking statements regarding Quidel and its future activities within the meaning of the federal securities laws that involve material risks and uncertainties. Many possible events or factors could affect future financial results and performance, such that actual results and performance may differ materially. Difference in operating results may arise as a result of a number of factors, including, without limitation, seasonality, adverse changes in the competitive and economic conditions in domestic and international markets, actions of their major distributors, manufacturing and production delays or difficulties, adverse actions or delays in product reviews by the FDA, and the lower acceptance of new products than forecast. Please see the discussion of these and other factors in Quidel's annual reports, Form 10-K's and subsequent quarterly reports on Form 10-Q.Quidel Corporation Condensed Consolidated Statements of Operations (In thousands, except per share data) Three months ended 6/30/99 6/30/98 (unaudited) Net sales $10,600 $9,803 Research contracts, license fees and royalties 972 1,068 Total revenues 11,572 10,871 Operating expenses Cost of sales 5,435 4,962 Sales and marketing 2,655 2,285 General and administrative 1,057 1,205 Research and development 1,584 2,047 Write down and closure of European subsidiaries -- 420 Total operating expenses 10,731 10,919 Operating income (loss) 841 (48) Other income (expense) (33) 66 Provision for income taxes (323) -- Net income $485 $18 Basic and diluted earnings per share $.02 $.00 Shares used in basic EPS 23,822 23,754 Shares used in diluted EPS 23,856 23,825 Gross profit as a percent of net sales 48.7% 49.4% Sales and marketing as a percent of net sales 25.0% 23.3% General and administrative as a percent of net sales 10.0% 12.3% Research and development as a percent of net sales 14.9% 20.9% Earnings before interest, taxes depreciation and amortization (EBITDA) $1,707 $698 Basic and diluted EBITDA per share $.07 $.03 Balance sheet data: 6/30/99 3/31/99 Cash and Cash Equivalents $8,135 $6,622 Working Capital 16,756 16,547 Total Assets 51,389 52,606 Stockholders' Equity 45,192 44,706 SOURCE Quidel Corporation
Charles J. Cashion, Chief Financial Officer, 619-552-7962,
or Christa Cerciello, Manager, Investor Relations, 619-646-8031,
both of Quidel Corporation