Quidel

News Release

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Quidel Reports Financial Results for the Quarter and Year Ended December 2000

SAN DIEGO, Feb. 15 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL) announced today its financial results for the fourth quarter and year ended December 31, 2000. For the quarter ended December 31, 2000, net product sales of $18.5 million exceeded the net product sales of $16.8 million reported for the December 31 quarter of the prior year, setting a new record. The net earnings for the quarter, excluding a $2.3 million charge associated with acquired in-process research and development from the Litmus Concepts, Inc. acquisition consummated during the fourth quarter were $0.5 million. Including this charge, the Company reported a net loss of $1.8 million or $.07 per share, both basic and diluted.

For the year ended December 31, 2000, net product sales of $68.4 million exceeded the prior year product sales of $52.2 million, an increase of 31% year over year, and also a record net sales amount. The net loss for the year, excluding the aforementioned charge and change in accounting principle described below, was a loss of $2.5 million. The net loss including these charges was $5.8 million or $.24 per share, both basic and diluted, compared to net income of $5.9 million or $.24 per share, diluted, for the year ended December 31, 1999. The net earnings for 1999 included a deferred tax benefit of $6.6 million and an extraordinary loss of $.9 million. Excluding these items, the net earnings would be $.2 million.

Quidel adopted the provisions of U.S. Securities and Exchange Commission's Staff Accounting Bulletin No. 101 (SAB 101) on Revenue Recognition with the cumulative effect reported as of January 1, 2000. As a result of this adoption, the Company recorded a charge of $1.1 million representing the cumulative effect of a change in accounting principle.

"The year 2000 was a challenging one for Quidel," said Andre de Bruin, Vice-Chairman and CEO. "While we are pleased with several important accomplishments during the year, we were faced with supply shortages throughout the year that curtailed sales and decreased gross margins. We believe we have now addressed these issues as is evidenced by our record fourth quarter product sales. The launch in the USA of our QuickVue(R) UrinChek(TM) urinalysis product line and CLIA waiver of our QuickVue(R) Influenza test were important events in 2000 that we expect will have a major positive impact on revenues in the years ahead. Additionally, we believe the acquisition of Litmus Concepts provides for an exciting, proprietary, new technology platform with tremendous strategic upside for Quidel."

Quidel's senior management will discuss the Company's fourth quarter and year end with investors and analysts on a conference call this morning, beginning at 10:00 a.m. EST. To participate, please call 1-212-271-4623. If you are unable to participate in the conference, a replay is available today at 12 p.m. EST through February 17, 2001 at 12 p.m., or by calling 1-800-633-8284, reservation number, 17910917. In addition, a webcast of the call will be available for 30 days at:

http://webcast.themeeetingson.com/webcast.jsp reservation 17910917.

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 report 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, except per share data)

                                    Three months ended    Twelve months ended
                                       December 31,          December 31,
                                     2000       1999        2000       1999
                                       (Unaudited)            (Unaudited)

    Net sales                     $18,504    $16,750     $68,351    $52,204
    Cost of sales                  10,479      8,150      36,503     27,059

    Gross profit                    8,025      8,600      31,848     25,145

    Research and development        1,174      1,556       7,046      7,070
    Sales and marketing             3,189      5,215      16,341     14,390
    General and administrative      2,901      1,793       8,845      6,024
    Acquired in-process research
     and development                2,300         --       2,300        820
    Amortization of intangibles       483        281       1,981        755

    Total operating expenses       10,047      8,845      36,513     29,059

    Loss from operations           (2,022)      (245)     (4,665)    (3,914)

    Research contract, license
     and royalty income              (208)     (1,716)    (1,048)    (4,315)
    Interest expense                  265        322       1,164        744
    Interest income                   (17)      (139)        (86)      (536)
    Other                            (281)        --          83         --

    Total other (income) expense     (241)     (1,533)       113     (4,107)

    Earnings (loss) before income
     taxes, extraordinary item
     and cumulative effect of change
     in accounting principle       (1,781)     1,288      (4,778)       193

    Income tax benefit                 --         --          --      6,575

    Earnings (loss) before
     extraordinary item and
     cumulative effect of change
     in accounting principle       (1,781)     1,288      (4,778)     6,768

    Extraordinary loss from early
     extinguishment of debt            --       (891)         --       (891)
    Cumulative effect of January 1,
     2000 change in accounting
     principle for adoption
     of SAB 101                        --         --      (1,068)        --

    Net earnings (loss)           $(1,781)       $397    $(5,846)    $5,877

    Earnings (loss) before
     extraordinary item and
     cumulative effect of change
     in accounting principle
     per share - basic             $(0.07)     $0.05      $(0.19)     $0.28


    Earnings (loss) before
     extraordinary item and
     cumulative effect of change
     in accounting principle
     per share - diluted          $(0.07)      $0.05      $(0.19)     $0.28

    Extraordinary loss from early
     extinguishment of debt per
     share - basic                    $--      $(0.04)       $--     $(0.04)
    Extraordinary loss from early
     extinguishment of debt per
     share - diluted                  $--      $(0.04)       $--     $(0.04)

    Cumulative effect to January 1,
     2000 of change in accounting
     principle for adoption of
     SAB 101 per share - basic        $--        $--      $(0.04)       $--

    Cumulative effect to January 1,
     2000 of change in accounting
     principle for adoption of
     SAB 101 per share - diluted      $--        $--      $(0.04)       $--


    Net earnings (loss)
     per share - basic            $(0.07)      $0.02      $(0.24)     $0.25
    Net earnings (loss)
     per share - diluted          $(0.07)      $0.02      $(0.24)     $0.24

    Weighted shares used in basic
     per share calculation         24,842     23,895      24,670     23,841
    Weighted shares used in diluted
     per share calculation         24,842     25,392      24,670     24,167

    Unaudited:
     EBITDA (earnings before interest,
      taxes, depreciation,
      amortization and effects of
      acquired in-process research
      and development, extraordinary
      item and change in accounting
      principle)                   $2,407     $3,637      $6,165     $6,103
     EBITDA per share - basic        0.10       0.15        0.25       0.26
     EBITDA per share - diluted      0.09       0.14        0.23       0.25

    Gross profit as a % of net sales   43%         51%        47%        48%
    Research and development as
     a % of net sales                   6%          9%        10%        14%
    Sales and marketing as
     a % of net sales                  17%         31%        24%        28%
    General and administrative as
     a % of net sales                  16%         11%        13%        12%


     Balance sheet data:         12/31/00   12/31/99

     Cash and cash equivalents     $1,901     $4,672
     Working capital                9,369     12,483
     Total assets                  82,032     68,040
     Long term obligations         10,074     11,429
     Stockholders' equity          58,307     43,755

CONTACT:
Sharon Platt, Investor Relations Associate of Quidel Corporation, 858-552-7955;
or Antoinette Ongg of Noonan-Russo Communications for Quidel Corporation, 212-696-4455 ext. 242