QIAGEN Reports First Quarter 2005 Results In-Line with Guidance – Positive Outlook
Venlo, The Netherlands, May 2, 2005 - QIAGEN N.V. (NASDAQ: QGEN; Frankfurt, Prime Standard: QIA) today announced the results of operations for the three-month period ended March 31, 2005.
The reported consolidated net sales and diluted earnings per share were in-line with the Company's projections for the first quarter 2005 as most recently communicated on February 15, 2005.
The Company reported that consolidated net sales for its first quarter 2005 decreased 1% to $95.0 million from $96.1 million for the same period in 2004. In the second quarter of 2004, QIAGEN sold its synthetic DNA business unit. Excluding $10.4 million of net sales related to this former business unit in the first quarter of 2004, consolidated net sales increased 11% from $85.7 million in 2004. Reported operating income for the quarter increased 18% to $21.4 million from $18.1 million in the same quarter of 2004, and net income for the quarter increased 22% to $13.9 million from $11.4 million in the same quarter of 2004. Diluted earnings per share for the first quarter increased 13% to $0.09 in 2005 from $0.08 in 2004. Included in operating income in both periods is amortization on acquisition related intangibles in the first quarter 2005 of $576,000 ($373,000 net of tax) and along with a charge related to the Company's relocation and restructuring efforts, primarily the relocation of QIAGEN's North American marketing and sales operations from Valencia, California to Germantown, Maryland of $1.2 million ($818,000 net of tax) in the first quarter of 2004. Excluding these charges, adjusted first quarter operating income increased 14% to $22.0 million in 2005 from $19.3 million in 2004, and first quarter 2005 adjusted net income increased 17% to $14.3 million from $12.2 million. Adjusted diluted earnings per share in the first quarter 2005 increased 25% to $0.10 per share, from $0.08 per share in the first quarter 2004.
"We are pleased with the results for our first quarter 2005. We met the financial targets we set for the quarter, are expanding our market and technology leadership and are experiencing a strong strategic momentum," said Peer Schatz, QIAGEN's Chief Executive Officer. "We successfully launched the execution phase of the strategic plans which we finalized late 2004. The first two series of new product introductions that emerged as a result of these plans were very successfully launched in mid-January and mid-April 2005. We expect strong organic and acquired growth for QIAGEN in 2005. Our Company is in a great position to address many exciting opportunities in research, clinical research, applied markets and molecular diagnostics."
"QIAGEN experienced a positive first quarter in 2005. Reported revenues and earnings per share were in line with the Company's guidance and our outlook for 2005 is positive and strong," said Roland Sackers , QIAGEN's Chief Financial Officer. "Revenue growth for the first quarter in 2005 compared to the first quarter of 2004 and adjusted for the sale of our synthetic DNA business unit, was approximately 11%. Growth rates include 3% from currency fluctuations. Our consumable business showed a solid 11% revenue growth rate. QIAGEN's instrumentation business grew approximately 7% as certain of our partners in molecular diagnostics continued to delay product introductions that incorporated QIAGEN instrumentation products into the second half of the year 2005. QIAGEN BioRobot revenues showed an exciting growth rate of approximately 41% with a very strong success in the applied testing (forensics, biodefense, GMO and food testing, veterinary and others) molecular diagnostics, and pharmaceutical market segments. Sales recorded in North America represented approximately 45% of our overall business and showed a 9% growth rate, European sales, which represent approximately 42% of our overall business, grew at a rate of approximately 15% and Japanese sales showed a growth rate of 5% in 2005. As expected, our overall growth rates evidence the fact that growth in Japan in the first quarter 2004 had been much stronger (>20%) compared to growth rates in Japan in the first quarter of 2005 (5%)."
QIAGEN Expanded its Technology Portfolio and Set New Standards:
Expanded technology and product base: QIAGEN acquired the world-wide exclusive technology and distribution rights and licenses for complete portfolio of RNAture's nucleic acid purification portfolio from Hitachi Chemical Research, Inc. This transaction brings a "coated plastics" technology product line for preanalytical sample preparation to QIAGEN. Current RNAture products address high-throughput mRNA purification for gene expression analysis.
Setting standards in gene silencing: QIAGEN launched what it believes is the world's first and largest product portfolio for integrated genome-wide RNAi and SYBR® Green-based RT-PCR. The offering addresses a critical need in research and drug development - the link between RNAi solutions and the corresponding gene expression assay used in the subsequent qPCR-based knockdown validation . QIAGEN believes that this new offering represents a substantial improvement over current offerings and that it provides access to a new dimension of value for customers in the rapidly growing field of RNAi.
Setting standards in gene expression: QIAGEN and Affymetrix Inc. announced the launch of the new GeneChip® Globin-Reduction kits and associated protocol developed in conjunction with PreAnalytiX - a joint venture between QIAGEN N.V. and BD (Becton Dickinson and Company). The new kits optimize the PreAnalytiX PAXgeneTM Blood RNA System for use with Affymetrix GeneChip technology and improve gene expression profile results of cellular RNA extracted from whole blood.
Setting standards in proteins: QIAGEN launched a strategically important new product line for protein sample preparation which positions QIAGEN as a leading provider for proteomic sample fractionation kits. This Qproteome TM product line is believed to represent one of the broadest, most comprehensive and technologically most advanced solution portfolios for the fractionation and depletion of proteins. Revenues recorded from these products in the first quarter 2005 exceeded our targets.
QIAGEN Broadened its Leadership Through Partnering:
Broadening leadership in diagnostics: QIAGEN and EPIGENOMICS entered into a strategic collaboration to jointly develop and introduce a gold-standard preanalytical solution portfolio for DNA methylation analysis for use in pre-clinical research, molecular diagnostics and pharmacogenomics markets. In addition QIAGEN obtained a world-wide, exclusive license to develop, manufacture, market and sell preanalytical solutions based on EPIGENOMICS' bisulfite technology for research and diagnostic uses as well as to its MethyLight assay technology for use in research applications.
Broadening leadership in diagnostics: QIAGEN entered into a manufacturing and supply agreement with Roche Molecular Systems, Pleasanton , California , a unit of Roche Diagnostics Basel, Switzerland, who will market QIAGEN's media sample preparation kits under their AmpliLute trademark.
Broadening leadership in diagnostics: QIAGEN entered into a manufacturing and supply agreement with Veridex, LLC, a Johnson & Johnson company. Veridex intends to market QIAGEN's preanalytical solutions as a component of the diagnostics solutions offered by Veridex.
Broadening technology portfolio: QIAGEN licensed a novel technology for haplotype specific extraction of DNA (HSE) for separating maternal from paternal alleles from Generation Biotech, LLC. Under the terms of the license agreement QIAGEN received exclusive rights for the worldwide commercialization of HSE in all applications.
Leveraging an external partnership in automation: QIAGEN expanded its strategic alliance with Protedyne Corporation, a premier supplier of ultra-high throughput industrial robotics for research, drug discovery, and testing laboratories to jointly market and cross-promote the use of Protedyne's BioCube System in conjunction with QIAGEN's QIAamp nucleic acid purification products as an integrated fully automated ultra-high throughput sample preparation system for high throughput research and molecular diagnostics markets.
QIAGEN Expanded Its Direct Presence:
Expanded direct presence: Starting May 1, 2005 QIAGEN's newly opened subsidiary in Stockholm, Sweden will directly distribute QIAGEN's complete range of products and services to QIAGEN customers in Scandinavia.
Expanded direct presence: As of May 1, 2005 QIAGEN opened a new business in Vienna , Austria which directly supplies QIAGEN's complete range of products and services to QIAGEN's customers in Austria .
Detailed information on the Company's business and financial performance will be presented in the Company's conference call on May 3, 2005 at 9:30am EDT. The corresponding presentation slides will be available 60 minutes ahead of the conference call on the Company's website at www.qiagen.com/goto/050305. A webcast of the conference call will be available at http://www.qiagen.com/goto/050305.
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom, Switzerland, France, Italy, Australia, Norway, Austria, Canada, Sweden, and the Netherlands believes it is the world's leading provider of innovative enabling technologies and products for the separation, purification and handling of nucleic acids and proteins. QIAGEN has developed a comprehensive portfolio of more than 320 proprietary, consumable products for nucleic acid and protein 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, QIAGEN is positioning its products for sale into developing commercial markets, including applied testing markets, clinical research, nucleic acid-based molecular diagnostics, and genetic vaccination and gene therapy. QIAGEN employs more than 1,300 people worldwide. Further information on QIAGEN can be found at http://www.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, markets, strategy or 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 applied testing markets and proteomics markets, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's, products ( including fluctuations for certain events including funding, budgets, and others ), 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, market acceptance of QIAGEN's new products and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).
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