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Quidel Reports Fourth Quarter and Fiscal 1999 Financial Results
SAN DIEGO, May 17 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) today announced its financial results for the fourth quarter and the fiscal year. Net income for the year ended March 31, 1999 was $7.7 million, or $.32 per share, compared to a net income of $1.1 million, or $.05 per share for the year ended March 31, 1998. Net income for the three months ended March 31, 1999 was $7.4 million, or $.31 per share, compared to a net loss of $107,000 for the three months ended March 31, 1998. The most significant difference in net income for fiscal year 1999 compared to fiscal year 1998 is a deferred tax benefit of $6.4 million in the fourth quarter of 1999 associated with the accumulated tax benefit of prior operating losses. The Company recorded a similar tax benefit of $2.7 million in fiscal 1998.
Operating income for the year ended March 31, 1999 was approximately $1.2 million or $.05 per share, compared to an operating loss of approximately $1.5 million, or $.06 per share, for fiscal 1998. Included in the results of operations for fiscal year 1999 and 1998 were charges of $440,000 and $3.1 million, respectively, associated with the write-down and closure of certain European subsidiaries.
"As of the end of the fiscal year 1999, we have completed the organizational and structural changes to the Company discussed with the stockholders during the year," said Andre de Bruin, vice chairman, president and chief executive officer of Quidel Corporation. "While we are pleased to report a profit for the fourth quarter and the year, we recognize that substantially improved financial performance is our obligation for the future. We believe that there are many opportunities in our existing markets where the recognition of QUIDEL's product quality and distribution strength should allow increased market share achievement and improved gross margins. At the same time, significant efforts have been made to increase the efficiency and cost effectiveness of our manufacturing operations which should also increase gross margin performance next year. During fiscal year 2000, our attention will be focused both on our existing products related to women's health and infectious diseases and also the opportunities associated with the expected new influenza and herpes diagnostic product introductions."
Quidel Corporation discovers, develops, manufactures and markets rapid immunodiagnostic products for point-of-care detection of human medical conditions and illnesses. These products provide simple, accurate and cost-effective diagnoses for acute and chronic conditions in the areas of women's health and infectious diseases. QUIDEL's products are sold to professionals in the physician's office and clinical laboratories, and to consumers through organizations that provide private label, store brand products. QUIDEL is based in San Diego, California.
This press release contains forward-looking statements regarding QUIDEL and its future activities within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. QUIDEL believes that its expectations are based on reasonable assumptions but it can give no assurance that its goals will be achieved. Actual results could differ materially from those described or implied in this press release as a result of a number of factors, including, but not limited to, the future growth of the waived-only physician markets, any adverse actions by the Company's distribution partners, competitive products, new product introductions by competitors, changes in regulations, other economic factors affecting the Company's markets, the degree of acceptance that new products achieve, and seasonality. Please see the discussion of these and other factors in the Company's annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. For more information on QUIDEL, visit http://www.quidel.com
QUIDEL CORPORATION Condensed Consolidated Statements of Operations (In thousands, except per share data) Three months ended Year ended 3/31/99 3/31/98 3/31/99 3/31/98 (unaudited) Net sales $13,270 $13,273 $47,163 $45,721 Research contracts, license fees and royalties 1,008 1,408 4,333 3,758 Total revenues 14,278 14,681 51,496 49,479 Operating expenses Cost of sales 7,037 7,432 26,106 24,248 Research and development 1,926 2,268 7,942 7,940 Sales and marketing 2,898 2,992 9,701 10,625 General and administrative 1,542 1,739 6,115 5,107 Write-down and closure of European subsidiaries 20 3,058 440 3,058 Total operating expenses 13,423 17,489 50,304 50,978 Operating income (loss) 855 (2,808) 1,192 (1,499) Other income (expense) (17) 19 202 (22) Benefit (provision) for income taxes 6,575 2,682 6,267 2,631 Net income (loss $ 7,413 $ (107) $ 7,661 $ 1,110 Basic and diluted earnings per share $ .31 $ .00 $ .32 $ .05 Shares used in basic EPS 23,806 23,730 23,782 23,649 Shares used in diluted EPS 23,816 23,807 23,804 23,857 Gross profit % of net sales 47% 44% 45% 47% Balance sheet data at March 31, 1999: Cash and Cash Equivalents $ 6,622 $ 9,720 Working Capital 16,547 16,790 Total Assets 52,606 47,782 Stockholders' Equity 44,706 36,889 SOURCE Quidel Corporation
Charles J. Cashion, Chief Financial Officer, 619-552-7962,
or Christa Cerciello, Manager, Investor Relations, 619-646-8031,
both of Quidel