Quidel

News Release

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October 26, 2000 at 12:00 AM EDT

Quidel Reports Third Quarter Earnings

SAN DIEGO, Oct. 26 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) announced today its financial results for the third quarter ended September 30, 2000. The net loss for the quarter was $4.5 million, or $.18 per share, on net sales of $10.5 million, compared to a net loss of $2.4 million or $.10 per share, on net sales of $11.6 million for the quarter ended September 30, 1999. As previously announced, the Company's quarterly results in 2000 were impacted by a reduction of distributor orders in July and August.

The net loss for the nine months ended September 30, 2000 was $3.3 million, or $.13 per share, compared to a net income of $5.5 million, or $.23 per share for the nine months ended September 30, 1999.

"As previously disclosed, Quidel's third quarter earnings were lower than expected," said Andre de Bruin, Quidel Vice Chairman, President and Chief Executive Officer. "This, however, in no way compromises our long-term vision for the Company to build a franchise in women's health diagnostics using innovative technology."

Earlier this month Quidel announced that the U.S. Food and Drug Administration (FDA) had granted a CLIA waiver for the Company's QuickVue(R) Influenza Test. Receiving a CLIA waiver for the QuickVue(R) Influenza Test in time for this winter's flu season is very exciting news for Quidel Corporation.

In August, Quidel announced the market introduction of its new QuickVue(R) UrinChek? 10+ SG urine test strips in the United States. Quidel had also previously announced that it had received premarket approval (PMA) from the U.S. Food and Drug Administration (FDA) to market the QUS(TM)-2 Calcaneal Ultrasonometer which measures bone density in the treatment of osteoporosis.

Quidel Corporation discovers, develops, manufactures and markets point-of- care, rapid diagnostic tests for detection of medical conditions and illnesses. These products provide accurate, rapid and cost-effective diagnostic information for acute and chronic conditions that affect women's health throughout the phases of their lives including reproductive status, pregnancy management and osteoporosis. Quidel also provides point-of-care diagnostics for infectious diseases, including influenza A and B, strep throat, H. pylori infection, chlamydia and infectious mononucleosis. Quidel's products are sold to healthcare professionals for use in physicians' 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.

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 products, 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 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 reports on Form 10-K and subsequent quarterly reports on Form 10-Q. For more information, please visit Quidel's web site at http://www.quidel.com.

                              QUIDEL CORPORATION

                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                (in thousands)
                                 (unaudited)

                             Three months ended        Nine months ended
                                September 30,                 September 30,
                              2000          1999         2000          1999

    Net Sales             $ 10,465      $ 11,584     $ 49,497      $ 35,454
    Cost of Sales            6,954         6,374       25,976        18,909

    Gross profit             3,511         5,210       23,521        16,545
    Research and
     development             2,583         2,250        5,872         5,514
    Sales & marketing        4,009         3,685       13,152         9,175
    General and
     administrative          1,807         1,612        5,944         4,231
    Acquired in-process
     research and development   --           820           --           820
    Amortization of
     intangibles               433           228        1,498           474

    Total operating
     expenses                8,832         8,595       26,466        20,214

    Loss from operations   (5,321)       (3,385)      (2,945)       (3,669)
    Research contract, license
     and royalty income      (201)         (619)        (840)       (2,599)
    Interest expense           301           107          899           422
    Interest income           (58)         (132)         (69)         (397)
    Other                        4            --          364            --

    Total other (income)
     expense                    46         (644)          354       (2,574)

    Loss before income
     taxes                 (5,367)       (2,741)      (3,299)       (1,095)

    Income tax (benefit)
     expense                 (827)           323            0         6,575

    Net earnings (loss)  $ (4,540)     $ (2,418)     $(3,299)        $5,480

    Net earnings (loss) per
     share - basic and
     diluted               $(0.18)       $(0.10)      $(0.13)         $0.23
    Pre-Tax loss per share
     - basic and
     diluted               $(0.22)       $(0.11)      $(0.13)       $(0.05)

    Shares used in basic and
     diluted per share
     calculation            24,833        23,857       24,833        23,857

    EBITDA               $ (3,460)     $ (1,396)       $2,441       $ 1,980
    EBITDA per share
     - basic and diluted    (0.14)        (0.06)         0.10          0.08

    Gross Profit as a % of
     Net Sales                 34%           45%          48%           47%
    R & D as a % of Net Sales  25%           19%          12%           16%
    Sales & Marketing as a %
     of Net Sales              38%           32%          27%           26%
    G & A as a % of Net Sales  17%           14%          12%           12%

    Balance sheet data            30-Sep-00       31-Dec-99     30-Sep-99
    Cash and cash equivalents       $ 3,902         $ 4,672       $ 7,132
    Working capital                  12,901          12,483         8,675
    Total assets                     62,741          68,040        59,207
    Long term obligations            10,376          11,429         2,914
    Stockholders' Equity             43,072          43,755        42,841

CONTACT:
Charles J. Cashion, Chief Financial Officer of Quidel Corporation, 858-552-7962;
or Miriam Weber, Vice President of Noonan-Russo Communications, 212-696-4455, ext. 352, for Quidel Corporation.