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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
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.