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Quidel Reports Record Third Quarter Net Sales
SAN DIEGO, Nov. 1 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL), a leading provider of rapid point-of-care (POC) diagnostic tests, today reported results for the three months ended September 30, 2001.
Net sales for the third quarter of 2001 were $16.1 million, up 39%, compared with net sales of $11.6 million for the third quarter of 2000. Pre-tax earnings for the third quarter of 2001 were $0.4 million, or $0.01 per share, compared with a pre-tax loss of $4.7 million, or $0.19 per share, for the third quarter of 2000. The net loss for the third quarter of 2001 was $0.1 million, or $0.00 per share, compared with a net loss of $3.9 million, or $0.16 per share, for third quarter of 2000.
The Company reported positive cash flow (earnings before taxes, depreciation, amortization and change in accounting principle) for the 2001 third quarter of $2.3 million, or $0.08 per share, compared with negative cash flow for the 2000 third quarter of $3.1 million, or $0.12 per share. The Company's cash flow for the nine-month period ended September 30, 2001 was $6.8 million, or $0.22 per share, compared with $2.9 million, or $0.12 per share, for the comparable period of 2000.
Gross margin on net sales for the third quarter of 2001 was 50%, compared with 36% for the third quarter of 2000. Total costs and expenses for the third quarter of 2001, including increased amortization associated with the acquisition of Litmus Concepts, were $16.0 million, compared with $16.2 million for the third quarter of 2000.
Third quarter results mark the fourth consecutive quarter that Quidel has met or exceeded consensus earnings expectations. These results reflect the Company's continued focus on improving its manufacturing operations, growing net sales and achieving profitability.
"Looking forward, we anticipate strong fourth quarter net sales aided by recent product launches, including our CLIA-waived QuickVue(R) Dipstick Strep A test in the U.S., and our QuickVue(R) Influenza test in Japan. The U.S. market has responded very favorably to our influenza test and we expect a similar favorable response in Japan," said S. Wayne Kay, President and Chief Executive Officer. "Additionally, solid progress is being made as we continue to develop our Layered Thin Film platform. We are on target to complete feasibility work on our pregnancy test on this proprietary technology platform by the end of 2001."
Conference Call Information
Quidel management will host a conference call to discuss third quarter results November 1, 2001, beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). To participate via telephone, please call (800) 633-8682. A telephone replay will be available for 48 hours following the conclusion of the call by dialing (800) 633-8284, and entering reservation number 19907666. The conference call will be broadcast live over the Internet at www.quidel.com. A replay will also be available on Quidel's Website for 14 days.
About Quidel Corporation
Quidel Corporation discovers, develops, manufactures and markets rapid point-of-care, diagnostic tests for detection of medical conditions and illnesses. These products provide accurate, rapid and cost-effective diagnostic information for acute and chronic conditions associated with women's health, in areas such as reproduction and diseases of the elderly. 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 physician 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. For more information, please visit Quidel's Web site at www.quidel.com.
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 business, 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/A and subsequent quarterly reports on Form 10-Q/A.
QUIDEL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
Three months ended Nine months ended September 30, September 30, 2001 2000 2001 2000 Net sales $16,117 $11,601 $51,185 $49,848 Research contract, license and royalty income 451 201 1,317 840 Total revenues 16,568 11,802 52,502 50,688 Cost of sales 8,072 7,411 25,250 26,025 Research and development 1,484 2,583 4,768 5,872 Sales and marketing 3,374 4,009 10,765 13,152 General and administrative 1,917 1,807 6,540 5,944 Restructuring -- -- 550 -- Amortization of intangibles 1,099 433 3,246 1,498 Total costs and expenses 15,946 16,243 51,119 52,491 Income (loss) from operations 622 (4,441) 1,383 (1,803) Interest expense 328 301 1,010 899 Interest income (2) (58) (43) (69) Other (78) 4 (262) 364 Total other expense 248 247 705 1,194 Earnings (loss) before income taxes and cumulative effect of change in accounting principle 374 (4,688) 678 (2,997) Income tax (benefit) expense 449 (827) 1,202 -- Loss before cumulative effect of change in accounting principle (75) (3,861) (524) (2,997) Cumulative effect of January 1, 2000 change in accounting principle for adoption of SAB 101 -- -- -- (1,068) Net loss $ (75) $ (3,861) $(524) $ (4,065) Earnings (loss) per share before income taxes and cumulative effect of change in accounting principle - basic and diluted $0.01 $(0.19) $0.02 $(0.12) Earnings (loss) per share before cumulative effect of change in accounting principle - basic and diluted $-- $(0.16) $(0.02) $(0.12) Cumulative effect of change in accounting principle per share - basic and diluted $-- $-- $-- $(0.04) Net loss per share - basic and diluted $-- $(0.16) $(0.02) $(0.16) Weighted shares used in basic per share calculation 28,302 24,775 28,202 24,613 Weighted shares used in diluted per share calculation 30,631 24,775 30,530 24,613 Cash flow (earnings before taxes, depreciation, amortization and change in accounting principle) $2,318 $ (3,077) $6,805 $2,928 Cash flow per share - basic 0.08 (0.12) 0.24 0.12 Cash flow per share - diluted 0.08 (0.12) 0.22 0.12 Gross profit as a % of net sales 50% 36% 51% 48% Research and development as a % of net sales 9% 22% 9% 12% Sales and marketing as a % of net sales 21% 35% 21% 26% General and administrative as a % of net sales 12% 16% 13% 12% QUIDEL CORPORATION (In thousands) Condensed balance sheet data: 9/30/01 12/31/00 (Unaudited) Cash and cash equivalents $2,218 $1,901 Working capital 12,805 10,024 Total assets 79,895 82,032 Long term obligations 10,481 10,729 Stockholders' equity 58,382 58,307
SOURCE Quidel Corporation
CONTACT: Bruce Voss, email@example.com, or Martin Halsall, firstname.lastname@example.org, of Lippert/Heilshorn & Associates, +1-310-691-7100, for Quidel Corporation; or Andrea Wasilew, Manager of Investor Relations, +1-858-552-7955, email@example.com, or Paul E. Landers, Vice President & CFO, +1-858-552-7962, both of Quidel Corporation/