QIAGEN Reports Strong First Quarter 2007 Results
May 07 2007

QIAGEN Reports Strong First Quarter 2007 Results

18% Revenue Growth, 13% Constant Currency and 11% Organic Growth

17% Adjusted Net Income Growth

$0.14 Adjusted EPS

 

Venlo, The Netherlands, May 7, 2007 - QIAGEN N.V. (Nasdaq: QGEN; Frankfurt, Prime Standard: QIA) today announced the results of operations for its first quarter ended on March 31, 2007.  

QIAGEN's First Quarter: 

Q1 2007

Q1 2006

Growth

Net sales (US$ m)

127.9

108.7

18%

Operating margin, adj.*

26%

26%

 

Net income, adj. (US$) * 22.6 19.2 17%

EPS, adj. (US$) *

0.14

0.13

 

* excluding acquisition, integration and restructuring related charges as well as amortization of acquired IP and equity-based compensation (SFAS 123R)

Consolidated net sales for our first quarter 2007 increased 18% to $127.9 million from $108.7 million for the same period in 2006. Reported operating income for the quarter increased 14% to $28.8 million from $25.2 million in the same quarter of 2006, and net income for the quarter increased 13% to $19.9 million from $17.6 million in the same quarter of 2006. Diluted earnings per share for the first quarter increased 8% to $0.13 in 2007 (based on 156.2 million weighted average shares) from $0.12 in 2006 (based on 152.3 million weighted average shares).

On an adjusted basis, first quarter operating income increased 18% to $32.8 million in 2007 from $27.8 million in 2006, and first quarter 2007 adjusted net income increased 17% to $22.6 million from $19.2 million in 2006. Adjusted diluted earnings per share in the first quarter 2007 increased 8% to $0.14 per share, from $0.13 per share in the first quarter 2006.

We have regularly reported adjusted results to give an additional insight into our financial performance. Adjusted results should be considered in addition to the reported results prepared in accordance with generally accepted accounting principles, but should not be considered a substitute. We believe certain items should be excluded from our adjusted results when they are either outside of our ongoing core operations or vary significantly from period to period, which affects the comparability of our results with our competitors and our own prior periods. Costs and charges excluded from adjusted results include acquisition, integration, restructuring and related costs, acquisition-related amortization, and compensation cost due to equity based compensation in accordance with Statement of Financial Accounting Standards No. 123 (SFAS 123R).

QIAGEN's Adjustments to Operating Income, Net Income and EPS:

In US$ millions unless indicated

Q1 2007

Q1 2006

Operating income, reported

28.80

25.25

Acquisition and integration related charges

0.69

0.95

Relocation and restructuring charges 0.40 -

SFAS 123R Impact

0.33

0.08

Amortization of acquired IP

2.60

1.50

Operating income, adjusted

32.82

27.78

     

Net income, reported

19.87

17.58

Acquisition and integration related charges

0.47

0.64

Relocation and restructuring charges 0.31 -

SFAS 123R Impact

0.21

0.05

Amortization of acquired IP

1.70

0.95

Net income, adjusted

22.56

19.22

 

 

 

Weighted average number of diluted common shares

156,199,000

152,278,000

EPS, reported in US$

0.13

0.12

EPS, adjusted in US$

0.14

0.13

"QIAGEN experienced a strong start into 2007," said Peer Schatz, QIAGEN's Chief Executive Officer. "We saw strong revenue growth and exciting momentum in our strategic position. In the first quarter of 2007 we launched 13 new products in the area of sample and assay technologies and are managing a strong pipeline of new products. "

"We are pleased with our financial performance in this first quarter of 2007. Reported revenues and adjusted earnings per share came in very strong and operating income was in-line with expectations," said Roland Sackers, QIAGEN's Chief Financial Officer. "Revenue growth for the first quarter was 18% and was fueled by a strong organic growth of 11% and a positive contribution of 2% from acquisitions. Our consumable portfolio contributed 15% growth. QIAGEN's instrumentation business showed a very strong growth rate at constant exchange rates of 40%. This number does not include the recently introduced QIAcube which started to ship late April and which is showing a very strong demand across all of our market segments. Net sales for the first quarter 2007 recorded in North America represented approximately 39% of our overall business and recorded a growth rate of 5% while European sales, which represent approximately 46% of our revenues showed a growth rate of approximately 14% at constant exchange rates. Net sales in Asia showed a very strong growth rate of 48% at constant exchange rates driven by strong demand, primarily in China as well as from our geographical expansion in Singapore and Korea."

QIAGEN's First Quarter 2007 at Constant Currencies:

 

2007

2007

2006

Growth Rates

As percentage

Q1

Q1

Q1

 

 

 

of net sales,
unless indicated

Reported

Constant Currency

Reported

Reported

Constant Currency

Consumables

89%

89%

91%

15%

11%

Instruments

10%

10%

8%

46%

40%

Others

1%

1%

1%

-11%

-15%

Total revenues

100%

100%

100%

18%

13%

Operating income margin

23%

23%

23%

14%

10%

Operating income margin, adj. *

26%

26%

26%

18%

14%

Net income margin

16%

16%

16%

13%

11%

Net income margin, adj. *

18%

18%

18%

17%

15%

EPS in US$ per share

0.13

0.13

0.12

8%

8%

EPS in US$ per share, adj. *

0.14

0.14

0.13

8%

8%

* excluding acquisition, integration and restructuring related charges as well as

amortization of acquired IP and equity-based compensation (SFAS 123R)

Detailed information on QIAGEN's business and financial performance will be presented in its conference call on May 8, 2007 at 9:30am EST. The corresponding presentation slides will be available for download on QIAGEN's website at http://www1.qiagen.com/goto/080507. A webcast of the conference call will be available on the same website at http://www1.qiagen.com/goto/080507.

QIAGEN - Sample and Assay Technologies Highlights:

QIAGEN developed and launched 13 new products during the first quarter 2007 around innovative sample and assay technologies for research in the areas of gene expression, micro RNA, proteomics, RNAi and molecular diagnostics.

QIAGEN launched the QIAcube, a revolutionary sample processing platform incorporating novel and proprietary technologies which allow users in over 40,000 laboratories in research in life sciences, applied testing and molecular diagnostics to fully automate the processing of almost all QIAGEN consumable products. The QIAcube received the distinguished New Product Award (NPA) Designation of the Association for Laboratory Automation (ALA) in February, 2007.

QIAGEN signed an agreement to acquire eGene, Inc., an early-stage company that has developed and is commercializing a patented sample separation and analysis technology based on capillary electrophoresis. eGene's HDA system together with its consumables provide quality control capabilities following our customers' use of our sample technologies as well as a readout system for our assay technologies in one platform. The system can be used as a readout platform for a number of research and other applications including Human Leukocyte Antigen (HLA) testing market, genetic testing including microsatellite analyses, DNA post-PCR separation and analysis at different resolutions, and RNA integrity quality control. The acquisition is subject to customary closing conditions, including eGene stockholder approval.

About QIAGEN:

QIAGEN N.V., a Netherlands holding company is the leading provider of innovative sample and assay technologies and products. QIAGEN's products are considered standards in pre-analytical sample preparation and assay solutions in research for life sciences, applied testing and molecular diagnostics. QIAGEN has developed a comprehensive portfolio of more than 500 proprietary consumable products and automated solutions for sample collection, nucleic acid and protein handling, separation, and purification and open and target-specific assays. QIAGEN's products are sold to academic research markets, to leading pharmaceutical and biotechnology companies, to applied testing customers (such as in forensics, veterinary, biodefense and industrial applications) as well as to molecular diagnostics laboratories.

In this press release QIAGEN is using the term molecular diagnostics. The use of this term in certain countries, such as the United States, is limited to products subject to regulatory requirements. Current QIAGEN molecular diagnostics products are 34 EU CE IVD assays, six EU CE IVD sample preparation products, one 510k PAX RNA product, nine China SFDA IVD assays and 98 general purpose reagents.

QIAGEN employs more than 1,900 people worldwide. QIAGEN products are sold through a dedicated sales force and a global network of distributors in more than 40 countries. Further information about QIAGEN can be found at 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, clinical research 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 due to the level and timing of customers' funding, budgets, and other factors), 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' products, market acceptance of QIAGEN's new products, the integration of acquired technologies and businesses, and the timing of product introductions by our commercial partners. For further information, refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission.

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