Quidel

News Release

Printer Friendly Version View printer-friendly version << Back
November 1, 2001 at 4:15 PM EST

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, bvoss@lhai.com, or Martin Halsall, mhalsall@lhai.com, of Lippert/Heilshorn & Associates, +1-310-691-7100, for Quidel Corporation; or Andrea Wasilew, Manager of Investor Relations, +1-858-552-7955, ir@quidel.com, or Paul E. Landers, Vice President & CFO, +1-858-552-7962, both of Quidel Corporation/