QIAGEN Reports Third Quarter 2003 Results
Venlo, The Netherlands, October 27, 2003 - QIAGEN N.V. (Nasdaq: QGENF; Frankfurt, Prime Standard: QIA) today announced its results of operations for the third quarter and nine-month period ended September 30, 2003.
The Company reported that net sales for its third quarter increased 18% to $90.4 million from $76.9 million for the same period in 2002. Reported operating income for the third quarter of 2003 increased 49% to $19.3 million from $12.9 million in the comparable period in 2002, and net income increased 61% to $11.8 million from $7.3 million in 2002. Diluted earnings per share increased 60% to $0.08 (based on 147.7 million average shares and share equivalents outstanding) from $0.05 (based on 146.0 million average shares and share equivalents outstanding) in the comparable period in 2002.
The reported consolidated net sales and diluted earnings per share exceeded or met the Company's projections as communicated in the Company's guidance for the third quarter 2003 on August 5, 2003.
For the nine-month period ended September 30, 2003, net sales increased 16% to $256.3 million from $220.2 million in the comparable period of 2002. Operating income as reported for the first nine months of 2003 increased 39% to $52.7 million from $38.0 million for the same period in 2002, net income increased 58% to $33.9 million from $21.4 million in 2002. Diluted earnings per share increased 53% to $0.23 (based on 146.9 million average shares and share equivalents outstanding) from $0.15 (based on 145.8 million average shares and share equivalents outstanding).
"We are very pleased to report these financial results of our successful third quarter," said QIAGEN's Chief Executive Officer Dr. Metin Colpan. "We are seeing positive momentum in many market segments. With an ongoing shift in focus of academic and industrial R&D to functional genomics and clinical research, and with the emergence of new and more complex applications, QIAGEN`s core competencies in sample collection, stabilization, purification and selected down-stream applications like Q-PCR and gene silencing are increasingly demanded. Our focus on our core competencies fuels our strength in addressing customer needs with state-of-the-art and proprietary enabling solutions. In addition, the recently observed increases in pharmaceutical and biotech research spending allow us to look optimistically into 2004."
QIAGEN's Third Quarter 2003 Highlights:
QIAGEN and Thermo Electron entered into an alliance in which Thermo Electron will co-promote Thermo‘s Kingfisher technology for exclusive use with QIAGEN Magnetic Bead consumable technologies for medium to high-throughput nucleic acid-based applications in research and molecular diagnostics.
Frost & Sullivan recognizes QIAGEN for superior product innovation in the nucleic acid isolation market. A comprehensive end-user study conducted by Frost & Sullivan entitled "U.S. Nucleic Acid Isolation Markets" identified QIAGEN as the market-leading provider of innovative and cost-effective products for the purification of nucleic acids. In an analysis entitled The World Robotics in Biology: Liquid Handling Markets, Frost & Sullivan identified QIAGEN as the undisputed leader in product innovation in this area and highlighted QIAGEN for product innovation in various automation solutions targeting molecular diagnostics and research.
QIAGEN and Novartis AG finalized the development of a novel algorithm for the selection of highly functional target sequences for RNA interference. In the largest project of its kind to date, 3000 randomly designed synthetic siRNA duplexes, targeting 30 genes were analyzed for functionality. Based on this database an automated target selection algorithm was developed which has demonstrated a significant performance improvement over existing design methods in extensive evaluation. QIAGEN and Novartis are also engaged in a successful supply relationship pursuant to which QIAGEN will supply siRNA products to Novartis.
QIAGEN sale of technology portfolio to Merial Limited , one of the world's leading animal health companies. The technology portfolio of the Pecura division included the veterinary rights to a novel class of drugs that are based on immunstimulatory cytosine-phosphodiester-guanine (CpG) dinucleotides, presented in synthetic oligodeoxynucleotides (CpG-ODN), which are believed to have promising potential in veterinary applications for livestock and companion animals. While QIAGEN believes that the assets have significant potential as veterinary therapeutics, they were not core to QIAGEN's strategic direction and were therefore not actively being pursued.>
Detailed information on the Company's business and financial performance will be presented in the Company's conference call on October 28, 2003 at 9:30am EST. The corresponding presentation slides will be available 60 minutes ahead of the conference call on the Company's website at http://www.qiagen.com/goto/102803. A webcast of the conference call will be available at http://www.videonewswire.com/QIAGEN/102803.
QIAGEN also announced today management changes and a new management structure which will take effect January 1, 2004 and are designed to provide continued strong leadership to address QIAGEN's exciting opportunities in the months and years ahead.
Dr. Metin Colpan, 48, Managing Director and Chief Executive Officer, will transition his role to Senior Technology Advisor to QIAGEN advising on technology projects. Dr. Colpan, a co-founder, will also join QIAGEN's Supervisory Board.
Peer M. Schatz, 38, Managing Director and Chief Financial Officer for the past 11 years, has been nominated as QIAGEN's Chief Executive Officer as well as Chairman of both the Management Board and the newly created Executive Committee.
The transition will take place over the coming two-month period to ensure a smooth transfer of responsibilities and continuity in all key areas of the company's operations.
As of today, Dr. Metin Colpan and Peer M. Schatz were the sole members of the Managing Board and have jointly led the Company.
QIAGEN also created an Executive Committee which will be led by Mr. Schatz. The Executive Committee is comprised of the Company's most senior executives responsible for core functions on a global basis. The Committee will be the management group which continues to chart QIAGEN's strategic and operational direction.
Please review the additional press release for further information. An interview with the newly introduced Executive Committee can be found on QIAGEN's webpage under http://www.qiagen.com/.
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom, Switzerland, France, Italy, Australia, Norway, Austria 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 1,600 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 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, and 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).
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