Quidel Corporation Announces First Quarter Results

Apr 26, 2001, 01:00 ET from Quidel Corporation

    SAN DIEGO, April 26 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL), a
 leading provider of point-of-care rapid diagnostic tests, announced today the
 financial results for the first quarter ended March 31, 2001.  Net sales for
 the first quarter ended March 31, 2001 were $19.5 million compared to
 $21.7 million for the first quarter ended March 31, 2000.  Net sales for the
 first quarter, 2001 were 6% above the fourth quarter ended December 31, 2000
 but below the first quarter last year due to the unusually high sales levels
 during that time associated with the withdrawal of Abbott Diagnostics'
 products from the market.
     Quidel's pre-tax earnings for the first quarter ended March 31, 2001 were
 $1.1 million or $0.04 per share, on a fully diluted basis, compared to
 $1.7 million or $0.06 per share, on a fully diluted basis, for the first
 quarter ended March 31, 2000. Excluding restructuring charges, Quidel's
 pre-tax earnings for the current quarter were $1.7 million or $0.06 per share.
 Net earnings, after provision for income tax expense (non-cash), for the first
 quarter ended March 31, 2001 were $0.4 million or $0.01 per share, on a fully
 diluted basis, as compared to a loss of $0.1 million or $0.01 loss per share,
 on a fully diluted basis, for the first quarter ended March 31, 2000.
     "We are pleased to report a second consecutive quarter of profitability
 from operations," said Andre de Bruin, Vice Chairman and CEO.  "Many of the
 investments we have made in both new product offerings and improvements to our
 infrastructure have begun to have an impact. Our manufacturing systems have
 stabilized, backorders were eliminated and gross margins improved during the
 quarter.  Despite the milder flu season, we are pleased to have recorded sales
 close to $20 million with our new products contributing significantly to the
 top line."
     "Equally important is the ongoing integration of Litmus Concepts into the
 Quidel organization," added de Bruin.  "Not only have we made significant
 progress combining Litmus personnel into Quidel's operations, we have also
 increased our research and development investments in the newly acquired
 Layered Thin Film (LTF) technology.  We believe our LTF product portfolio
 will, over time, redefine the way rapid diagnostic testing outside the
 hospital is performed.  Quidel's existing, strong market presence along with
 the substantial intellectual property surrounding the LTF technology should
 create a distinct advantage for Quidel in the marketplace."
     During the first quarter of 2001, both pre-tax and net earnings were
 impacted by a restructuring charge of $0.6 million related to the reduction of
 personnel associated with acquisition activities in 2000 and the closure of
 the United Kingdom subsidiary.  The net loss for the first quarter ended
 March 31, 2000 was impacted by a $1.1 million charge related to a change in
 accounting principle due to the adoption of the Securities and Exchange
 Commission, Staff Accounting Bulletin 101, Revenue Recognition in Financial
 Statements, with the cumulative effect reported in that quarter.
     Quidel's senior management will discuss the Company's first quarter
 results with investors and analysts on a conference call this morning,
 beginning at 10:00a.m. EST.  To participate, please call 1-212-896-6078.  If
 you are unable to participate in the conference, a replay is available today
 at 12 p.m. EST through April 28, 2001 at 12 p.m., by calling 1-800-633-8284,
 reservation number, 18630467.  In addition, a webcast of the call will be
 available for 30 days at:
 http://webcast.themeetingson.com/webcast.jsp?reservation=18630467.
 
     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, infectious mononucleosis, and
 bacterial vaginosis.  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 (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. 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
                                                            March 31,
                                                      2001              2000
 
     Net sales                                      $19,544           $21,664
     Cost of sales                                    8,994            10,514
 
     Gross profit                                    10,550            11,150
 
     Research and development                         1,533             1,792
     Sales and marketing                              4,102             4,748
     General and administrative                       2,221             2,208
     Restructuring                                      550                --
     Amortization of intangibles                      1,103               632
 
     Total operating expenses                         9,509             9,380
 
     Income from operations                           1,041             1,770
 
     Research contract, license and royalty income     (398)             (314)
     Interest expense                                   337                51
     Interest income                                    (11)              (10)
     Other                                               11               350
 
     Total other (income) expense                       (61)               77
 
     Earnings before income taxes and cumulative
        effect of change in accounting principle      1,102             1,693
 
     Income tax expense                                (685)             (768)
 
     Earnings before cumulative effect
        of change in accounting principle               417               925
 
     Cumulative effect of January 1, 2000 change in
        accounting principle for adoption of SAB 101    --            (1,068)
 
     Net earnings (loss)                               $417             $(143)
 
     Earnings per share before income taxes and
        cumulative effect of change in
        accounting principle - basic                  $0.04             $0.07
     Earnings per share before income
        taxes and cumulative effect of change
        in accounting principle - diluted             $0.04             $0.06
 
     Earnings per share before cumulative effect
        of change in accounting principle - basic     $0.01             $0.04
     Earnings per share before cumulative effect
        of change in accounting principle - diluted   $0.01             $0.03
 
     Cumulative effect of change in accounting
        principle per share  - basic and diluted        $--            $(0.05)
 
     Net earnings (loss) per share
      - basic and diluted                             $0.01            $(0.01)
 
     Weighted shares used in basic per
      share calculation                              28,124            24,404
     Weighted shares used in diluted per
      share calculation                              29,038            26,703
 
     EBITDA (earnings before interest, taxes,
      depreciation, amortization and
      change in accounting principle)                $3,662            $3,814
     EBITDA per share - basic                          0.13              0.16
     EBITDA per share - diluted                        0.13              0.14
 
     Gross profit as a % of net sales                   54%               51%
     Research and development as a % of net sales        8%                8%
     Sales and marketing as a % of net sales            21%               22%
     General and administrative as a % of net sales     11%               10%
 
 
      Balance sheet data:                           3/31/01           12/31/00
 
      Cash and cash equivalents                      $3,227            $1,901
      Working capital                                11,893            10,024
      Total assets                                   80,371            82,032
      Long term obligations                          10,649            10,729
      Stockholders' equity                           58,460            58,307
 
 
     Contacts:
 
     Sharon Platt
     Investor Relations Associate
     Quidel Corporation
     (858) 552-7955
 
     Matthew Orsagh
     Noonan/Russo Communications
     (212) 696-4455 ext. 357
 
 
                     MAKE YOUR OPINION COUNT --  Click Here
                http://tbutton.prnewswire.com/prn/11690X17685131
 
 

SOURCE Quidel Corporation
    SAN DIEGO, April 26 /PRNewswire/ -- Quidel Corporation (Nasdaq: QDEL), a
 leading provider of point-of-care rapid diagnostic tests, announced today the
 financial results for the first quarter ended March 31, 2001.  Net sales for
 the first quarter ended March 31, 2001 were $19.5 million compared to
 $21.7 million for the first quarter ended March 31, 2000.  Net sales for the
 first quarter, 2001 were 6% above the fourth quarter ended December 31, 2000
 but below the first quarter last year due to the unusually high sales levels
 during that time associated with the withdrawal of Abbott Diagnostics'
 products from the market.
     Quidel's pre-tax earnings for the first quarter ended March 31, 2001 were
 $1.1 million or $0.04 per share, on a fully diluted basis, compared to
 $1.7 million or $0.06 per share, on a fully diluted basis, for the first
 quarter ended March 31, 2000. Excluding restructuring charges, Quidel's
 pre-tax earnings for the current quarter were $1.7 million or $0.06 per share.
 Net earnings, after provision for income tax expense (non-cash), for the first
 quarter ended March 31, 2001 were $0.4 million or $0.01 per share, on a fully
 diluted basis, as compared to a loss of $0.1 million or $0.01 loss per share,
 on a fully diluted basis, for the first quarter ended March 31, 2000.
     "We are pleased to report a second consecutive quarter of profitability
 from operations," said Andre de Bruin, Vice Chairman and CEO.  "Many of the
 investments we have made in both new product offerings and improvements to our
 infrastructure have begun to have an impact. Our manufacturing systems have
 stabilized, backorders were eliminated and gross margins improved during the
 quarter.  Despite the milder flu season, we are pleased to have recorded sales
 close to $20 million with our new products contributing significantly to the
 top line."
     "Equally important is the ongoing integration of Litmus Concepts into the
 Quidel organization," added de Bruin.  "Not only have we made significant
 progress combining Litmus personnel into Quidel's operations, we have also
 increased our research and development investments in the newly acquired
 Layered Thin Film (LTF) technology.  We believe our LTF product portfolio
 will, over time, redefine the way rapid diagnostic testing outside the
 hospital is performed.  Quidel's existing, strong market presence along with
 the substantial intellectual property surrounding the LTF technology should
 create a distinct advantage for Quidel in the marketplace."
     During the first quarter of 2001, both pre-tax and net earnings were
 impacted by a restructuring charge of $0.6 million related to the reduction of
 personnel associated with acquisition activities in 2000 and the closure of
 the United Kingdom subsidiary.  The net loss for the first quarter ended
 March 31, 2000 was impacted by a $1.1 million charge related to a change in
 accounting principle due to the adoption of the Securities and Exchange
 Commission, Staff Accounting Bulletin 101, Revenue Recognition in Financial
 Statements, with the cumulative effect reported in that quarter.
     Quidel's senior management will discuss the Company's first quarter
 results with investors and analysts on a conference call this morning,
 beginning at 10:00a.m. EST.  To participate, please call 1-212-896-6078.  If
 you are unable to participate in the conference, a replay is available today
 at 12 p.m. EST through April 28, 2001 at 12 p.m., by calling 1-800-633-8284,
 reservation number, 18630467.  In addition, a webcast of the call will be
 available for 30 days at:
 http://webcast.themeetingson.com/webcast.jsp?reservation=18630467.
 
     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, infectious mononucleosis, and
 bacterial vaginosis.  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 (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. 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
                                                            March 31,
                                                      2001              2000
 
     Net sales                                      $19,544           $21,664
     Cost of sales                                    8,994            10,514
 
     Gross profit                                    10,550            11,150
 
     Research and development                         1,533             1,792
     Sales and marketing                              4,102             4,748
     General and administrative                       2,221             2,208
     Restructuring                                      550                --
     Amortization of intangibles                      1,103               632
 
     Total operating expenses                         9,509             9,380
 
     Income from operations                           1,041             1,770
 
     Research contract, license and royalty income     (398)             (314)
     Interest expense                                   337                51
     Interest income                                    (11)              (10)
     Other                                               11               350
 
     Total other (income) expense                       (61)               77
 
     Earnings before income taxes and cumulative
        effect of change in accounting principle      1,102             1,693
 
     Income tax expense                                (685)             (768)
 
     Earnings before cumulative effect
        of change in accounting principle               417               925
 
     Cumulative effect of January 1, 2000 change in
        accounting principle for adoption of SAB 101    --            (1,068)
 
     Net earnings (loss)                               $417             $(143)
 
     Earnings per share before income taxes and
        cumulative effect of change in
        accounting principle - basic                  $0.04             $0.07
     Earnings per share before income
        taxes and cumulative effect of change
        in accounting principle - diluted             $0.04             $0.06
 
     Earnings per share before cumulative effect
        of change in accounting principle - basic     $0.01             $0.04
     Earnings per share before cumulative effect
        of change in accounting principle - diluted   $0.01             $0.03
 
     Cumulative effect of change in accounting
        principle per share  - basic and diluted        $--            $(0.05)
 
     Net earnings (loss) per share
      - basic and diluted                             $0.01            $(0.01)
 
     Weighted shares used in basic per
      share calculation                              28,124            24,404
     Weighted shares used in diluted per
      share calculation                              29,038            26,703
 
     EBITDA (earnings before interest, taxes,
      depreciation, amortization and
      change in accounting principle)                $3,662            $3,814
     EBITDA per share - basic                          0.13              0.16
     EBITDA per share - diluted                        0.13              0.14
 
     Gross profit as a % of net sales                   54%               51%
     Research and development as a % of net sales        8%                8%
     Sales and marketing as a % of net sales            21%               22%
     General and administrative as a % of net sales     11%               10%
 
 
      Balance sheet data:                           3/31/01           12/31/00
 
      Cash and cash equivalents                      $3,227            $1,901
      Working capital                                11,893            10,024
      Total assets                                   80,371            82,032
      Long term obligations                          10,649            10,729
      Stockholders' equity                           58,460            58,307
 
 
     Contacts:
 
     Sharon Platt
     Investor Relations Associate
     Quidel Corporation
     (858) 552-7955
 
     Matthew Orsagh
     Noonan/Russo Communications
     (212) 696-4455 ext. 357
 
 
                     MAKE YOUR OPINION COUNT --  Click Here
                http://tbutton.prnewswire.com/prn/11690X17685131
 
 SOURCE  Quidel Corporation