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Quidel Reports Second Quarter Results
Company Reports Year-to-Date Cash Flow Per Share of 15 Cents
SAN DIEGO, July 31 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL), a leading provider of rapid point-of-care (POC) diagnostic tests, today reported results for the three months ended June 30, 2001.
Net sales for the second quarter of 2001 were $15.5 million, compared with net sales of $16.6 million for the second quarter of 2000. Net sales for the second quarter of 2000 were impacted by unusually high levels of distributor stocking associated with the withdrawal of a key competitor from the market. The Company reported a pre-tax loss for the second quarter of 2001 of $798,000, or $0.03 per share, compared with a pre-tax loss of $2,000, or $0.00 per share, for the second quarter of 2000. Net loss for the second quarter of 2001 was $866,000, or $0.03 per share, compared with a net loss of $61,000, or $0.00 per share, for second quarter of 2000.
Cash flow (earnings before taxes, depreciation and amortization) for the second quarter of 2001 was $1.2 million, or $0.04 per share, as compared with the second quarter of 2000 of $1.3 million, or $0.05 per share.
Gross profit margin for the second quarter of 2001 was 47%, compared with a gross profit margin of 51% for the second quarter of 2000. Total operating expenses for the 2001 second quarter, including increased amortization associated with the acquisition of Litmus Concepts, were $8.5 million, compared with $8.3 million for second quarter of 2000.
"Our second quarter results mark the third consecutive quarter that we have met or bettered consensus earnings expectations. Similarly, we expect the remainder of the year to develop according to our internal plan. We are particularly pleased to report better than breakeven pre-tax earnings for the first half of 2001, despite the fairly substantial integration and amortization charges associated with the Litmus Concepts acquisition. Importantly, our cash flow for the six-month period ended June 30, 2001 was $0.15 per share," said Andre de Bruin, Quidel's Vice Chairman and Chief Executive Officer.
"Looking forward, we anticipate a strong second half of the year, aided by the launch of our new CLIA-waived QuickVue(R) Dipstick Strep A test and implementation of the first stage of our manufacturing enhancements for our pregnancy test products," added S. Wayne Kay, Quidel's President and Chief Operating Officer. "Pending final government approval, we also expect to introduce our QuickVue Influenza product into the Japanese market, late in the third quarter of 2001."
Conference Call Information
Quidel management will host a conference call to discuss second quarter results today, beginning at 5:00 p.m. Eastern Time. To listen via telephone, please call (888) 328-2945. A telephone replay will be available for 48 hours following the conclusion of the call by dialing (800) 633-8284, and entering reservation number 19418818. The conference call will be broadcast live over the Internet at http://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 http://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 and subsequent quarterly reports on Form 10-Q.
QUIDEL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three months ended Six months ended June 30, June 30, 2001 2000 2001 2000 Net sales $15,524 $16,583 $35,068 $38,247 Cost of sales 8,184 8,100 17,178 18,614 Gross profit 7,340 8,483 17,890 19,633 Research and development 1,751 1,497 3,343 3,289 Sales and marketing 3,289 4,395 7,391 9,143 General and administrative 2,402 1,929 4,623 4,137 Restructuring -- -- 550 -- Amortization of intangibles 1,044 433 2,088 1,065 Total operating expenses 8,486 8,254 17,995 17,634 Income (loss) from operations (1,146) 229 (105) 1,999 Research contract, license and royalty income (468) (325) (866) (639) Interest expense 345 549 682 598 Interest income (30) (1) (41) (9) Other (195) 8 (184) 358 Total other (income) expense (348) 231 (409) 308 Earnings (loss) before income taxes and cumulative effect of change in accounting principle (798) (2) 304 1,691 Income tax expense 68 59 753 827 Earnings (loss) before cumulative effect of change in accounting principle (866) (61) (449) 864 Cumulative effect of January 1, 2000 change in accounting principle for adoption of SAB 101 -- -- -- (1,068) Net loss $(866) $(61) $(449) $(204) Earnings (loss) per share before income taxes and cumulative effect of change in accounting principle - basic $(0.03) $(0.00) $0.01 $0.07 Earnings (loss) per share before income taxes and cumulative effect of change in accounting principle - diluted $(0.03) $(0.00) $0.01 $0.06 Earnings (loss) per share before cumulative effect of change in accounting principle - basic $(0.03) $(0.00) $(0.02) $0.04 Earnings (loss) per share before cumulative effect of change in accounting principle - diluted $(0.03) $(0.00) $(0.02) $0.03 Cumulative effect of change in accounting principle per share - basic and diluted $-- $-- $-- $(0.04) Net loss per share - basic and diluted $(0.03) $(0.00) $(0.02) $(0.01) Weighted shares used in basic per share calculation 28,177 24,638 28,151 24,518 Weighted shares used in diluted per share calculation 28,978 26,636 28,952 26,517 Cash flow (earnings before taxes, depreciation, amortization and change in accounting principle) $1,210 $1,278 $4,487 $4,964 Cash flow per share - basic 0.04 0.05 0.16 0.20 Cash flow per share - diluted 0.04 0.05 0.15 0.19 Gross profit as a % of net sales 47% 51% 51% 51% Research and development as a % of net sales 11% 9% 10% 9% Sales and marketing as a % of net sales 21% 27% 21% 24% General and administrative as a % of net sales 15% 12% 13% 11% Balance sheet data: 6/30/01 12/31/00 (Unaudited) Cash and cash equivalents $1,527 $1,901 Working capital 11,697 10,024 Total assets 77,025 82,032 Long term obligations 10,565 10,729 Stockholders' equity 57,613 58,307
Bruce Voss, firstname.lastname@example.org,
or Martin Halsall, email@example.com,
of Lippert/Heilshorn & Associates, +1-310-691-7100;
or Sharon Platt, Investor Relations Associate, +1-858-552-7955,
or S. Wayne Kay, President & COO,+1-858-646-8063,
both of Quidel Corporation