Interesting to see the favorable anecdotal comparison of the MassArray to ABI's Assays-on-Demand. I think ABI is dead in the water.
Anyhow, QGENF reported earnings in line with guidance, with revenue slightly higher. Analyst estimates are in some dispute, with Reuters claiming that the dollar amount of earnings was a slight miss compared to the consensus of 18 analysts. Briefing.com said the numbers were on target, and the EPS numbers from Yahoo! were indeed 5 cents per share, but based on only two analysts. Whatever, the company will discuss future guidance on the CC tomorrow.
>>VENLO, The Netherlands, Oct. 28 /PRNewswire-FirstCall/ -- QIAGEN N.V. (Nasdaq: QGENF, Neuer Markt: QIA) today announced the results of operations for its third quarter and nine-month period ended September 30, 2002.
The Company reported that consolidated net sales for its third quarter increased 21% to $76.9 million, from $63.3 million for the same period in 2001. Operating income increased 28% to $12.9 million from $10.1 million in the comparable period in 2001, net income increased 18% to $7.3 million from $6.2 million in the same quarter of 2001 and diluted earnings per share increased 25% to $0.05 (based on 146.0 million average shares and share equivalents outstanding) from $0.04 (based on 144.9 million average shares and share equivalents outstanding).
The reported consolidated net sales were higher than and diluted earnings per share were in line with the Company's guidance for the third quarter as communicated on July 3, 2002.
For the nine-month period ended September 30, 2002, total reported net sales increased 14% to $220.2 million from $192.5 million in the comparable period of 2001. Excluding the effect of one-time charges related to the acquisition of GenoVision AS during the second quarter 2002 as well as related to the acquisition of the SAWADY group during the first quarter of 2001 and a gain on the sale of a financial asset of approximately $1.4 million during the second quarter of 2001, operating income for the nine-month period ended September 30, 2002 increased 4% to $40.9 million from $39.3 million in 2001 and net income decreased 2% to $23.6 million in 2002 from $24.1 million in 2001 and diluted earnings per share decreased 6% to $0.16 from $0.17. Reported operating income, which was negatively impacted by one-time charges and the Company's financial performance in the second quarter of 2002, increased 5% to $38.0 million from $36.3 million in the comparable period in 2001, net income decreased 9% to $21.4 million from $23.5 million in the first nine-months of 2001, and diluted earnings per share decreased 6% to $0,15 (based on 145.8 million average shares and share equivalents) from $0,16 (based on 145.0 million average shares and share equivalents).
"We are pleased to have achieved significant revenue growth during this third quarter of 2002," said Dr. Metin Colpan, QIAGEN's Chief Executive Officer. "Our core consumable products for the separation, purification and handling of nucleic acids represented approximately 72% of consolidated net sales and showed strong growth of approximately 24%. Academic, pharmaceutical and biotech markets for these products all continued to show strong increases in demand. Our synthetic nucleic acid business contributed approximately 13% of net sales. We met our targets in this third quarter in this business and remain optimistic about opportunities in profitable segments, however, the synthetic nucleic acid business continues to perform below the profitability and growth expectations we set for our businesses in general. The instrumentation business represented approximately 10% of net sales and experienced a growth rate of 7% compared to the second quarter 2002. QIAGEN launched a series of exciting new automation products in this third quarter such as the BioRobot MDx targeting clinical customers as well as the BioRobot M product lines. We believe that these products have the potential to contribute to significant growth in future periods. With its unique and highly focused portfolio addressing more than 80 different applications in nucleic acid handling, separation and purification, QIAGEN is well positioned to take full advantage of the accelerating momentum in the life science industry."
QIAGEN will host a conference call at 9:30 am EST on October 29, 2002. A webcast of the conference call will be available at videonewswire.com.
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom, Switzerland, France, Italy, Australian, Norway and Canada, believes it is the world's leading provider of innovative enabling technologies and products for the separation, purification and handling of nucleic acids. The Company has developed a comprehensive portfolio of more than 320 proprietary, consumable products for nucleic acid separation, purification and handling, nucleic acid amplification, as well as automated instrumentation, synthetic nucleic acid products and related services. QIAGEN's products are sold in more than 42 countries throughout the world to academic research markets and to leading pharmaceutical and biotechnology companies. In addition, the Company is positioning its products for sale into developing commercial markets, including DNA sequencing and genomics, nucleic acid-based molecular diagnostics, and genetic vaccination and gene therapy. QIAGEN employs approximately 1,700 people worldwide. Further information on QIAGEN can be found at qiagen.com.
Certain of the statements contained in this news release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations and risks of dependency on logistics), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, nucleic acid-based molecular diagnostics market, genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including seasonal fluctuations), difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with the U.S. Securities and Exchange Commission (SEC).
QIAGEN N.V. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three months ended September 30, 2002 2001
Net sales $ 76.882.000 $ 63.343.000 Cost of sales 26.453.000 19.970.000 Gross profit 50.429.000 43.373.000
Operating Expenses: Research and development 7.310.000 6.125.000 Sales and marketing 19.003.000 17.288.000 General and administrative 11.171.000 9.879.000 Acquisition costs -- -- Total operating expenses 37.484.000 33.292.000
Income from operations 12.945.000 10.081.000
Other Income (Expense):
Interest income 171.000 346.000 Interest expense (577.000) (213.000) Research and development grants 133.000 419.000 Loss on foreign currency transactions (353.000) (590.000) Loss from equity method investee (267.000) (177.000) Other miscellaneous (expense) income, net (63.000) 33.000 Total other expense (956.000) (182.000)
Income before provision for income taxes and minority interest 11.989.000 9.899.000 Provision for income taxes 4.700.000 3.706.000 Net income $ 7.289.000 $ 6.193.000
Weighted average number of diluted common shares 145.976.000 144.916.000
Diluted net income per common share 0,05 0,04
QIAGEN N.V. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Nine months ended September 30,
2002 2001 Net sales $ 220.159.000 $ 192.537.000 Cost of sales 71.853.000 57.533.000 Gross profit 148.306.000 135.004.000
Operating Expenses: Research and development 20.489.000 19.825.000 Sales and marketing 55.849.000 47.805.000 General and administrative 31.111.000 28.025.000 Acquisition costs 2.848.000 3.000.000 Total operating expenses 110.297.000 98.655.000
Income from operations 38.009.000 36.349.000
Other Income (Expense): Interest income 828.000 1.575.000 Interest expense (1.748.000) (904.000) Research and development grants 470.000 836.000 Loss on foreign currency transactions (1.756.000) (264.000) Loss from equity method investee (844.000) (1.082.000) Other miscellaneous (expense) income, net (83.000) 1.492.000 Total other (expense) income (3.133.000) 1.653.000
Income before provision for income taxes and minority interest 34.876.000 38.002.000
Provision for income taxes 13.512.000 14.509.000 Minority interest expense (income) (5.000) 8.000 Net income $ 21.369.000 $ 23.485.000
Weighted average number of diluted common shares 145.767.000 145.034.000
Diluted net income per common share $ 0,15 $ 0,16 Diluted net income per common share $ 0,16 $ 0,18 excluding acquisition costs
QIAGEN N.V. CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31, 2002 2001 Assets
Current Assets: Cash and cash equivalents $ 51.786.000 $ 56.460.000 Marketable securities 11.915.000 22.512.000 Notes receivable 4.165.000 3.844.000 Accounts receivable, net 46.921.000 39.955.000 Income taxes receivable 2.457.000 2.439.000 Inventories 49.903.000 31.883.000 Deferred income taxes 11.123.000 11.123.000 Prepaid expenses and other 13.793.000 9.115.000 Total current assets 192.063.000 177.331.000
Property, plant and equipment, net 200.046.000 160.365.000 Long-term marketable securities 534.000 2.759.000 Intangible assets, net 39.367.000 7.140.000 Deferred income taxes 1.804.000 1.804.000 Other assets 8.704.000 7.569.000 Total assets $ 442.518.000 $ 356.968.000
Liabilities and Shareholders' Equity
Current Liabilities: Lines of credit $ 1.214.000 $ 6.038.000 Short-term debt 2.944.000 281.000 Current portion of long- term debt 1.254.000 1.138.000 Current portion of capital lease obligations 1.222.000 1.085.000 Accounts payable 18.377.000 20.262.000 Accrued liabilities 25.994.000 20.235.000 Income taxes payable 12.309.000 8.434.000 Deferred income taxes 5.160.000 410.000 Total current liabilities 68.474.000 57.883.000
Long-Term Liabilities: Long-term debt, net of current portion 92.789.000 70.720.000 Capital lease obligations, net of current portion 10.716.000 10.463.000 Other 3.738.000 4.927.000
Total long-term liabilities 107.243.000 86.110.000
Commitments and Contingencies
Shareholders' Equity: Common shares, EUR .01 par value: Authorized--260,000,000 shares Issued and outstanding-- 145,485,489 shares in 2002 and 143,463,800 shares in 2001 1.477.000 1.458.000
Additional paid-in-capital 148.098.000 123.117.000 Retained earnings 118.647.000 97.278.000 Accumulated other comprehensive loss (1.421.000) (8.878.000)
Total shareholders' equity 266.801.000 212.975.000
Total liabilities and shareholders' equity $ 442.518.000 $ 356.968.000<<
Cheers, Tuck |