QIAGEN Reports Strong Second Quarter 2003 Results
Venlo, The Netherlands, August 4, 2003 - QIAGEN N.V. (Nasdaq: QGENF; Frankfurt, Prime Standard: QIA) today announced the results of operations for its second quarter and six-month period ended June 30, 2003.
The Company reported that net sales for its second quarter increased 19% to $86.3 million from $72.7 million for the same period in 2002. Reported operating income for the second quarter 2003 increased 85% to $17.3 million from $9.4 million in the comparable period in 2002, and net income increased 143% to $11.1 million from $4.6 million in 2002. Diluted earnings per share increased 167% to $0.08 (based on 146.7 million average shares and share equivalents outstanding) from $0.03 (based on 145.9 million average shares and share equivalents outstanding) in the comparable period in 2002.
The reported consolidated net sales and diluted earnings per share exceeded the Company's projections as communicated in the Company's guidance for the second quarter 2003 on May 06, 2003.
Excluding a $1.2 million in-process research and development charge and an equipment impairment of approximately $1.6 million during the second quarter of 2002, related to the acquisition of GenoVision A.S., operating income increased 42% to $17.3 million from $12.2 million in the comparable period in 2002, net income increased 64% to $11.1 million from $6.8 million in the same quarter of 2002 and diluted earnings per share increased 60% to $0.08 from $0.05 in 2002.
For the six-month period ended June 30, 2003, net sales increased 16% to $165.8 million from $143.3 million in the comparable period of 2002. Operating income as reported for the first half of 2003 increased 33% to $33.4 million from $25.1 million for the same period in 2002, and net income increased 57% to $22.1 million from $14.1 million in 2002 and diluted earnings per share increased 50% to $0.15 (based on 146.4 million average shares and share equivalents outstanding) from $0.10 (based on 145.6 million average shares and share equivalents outstanding).
Excluding charges related to the closure of QIAGEN's Seattle facility in 2002, of which $1.6 million was expensed in the first quarter of 2003, as well as the effect of charges related to the acquisition of GenoVision A.S. in 2002, operating income for the six-month period ended June 30, 2003 increased 25% to $35.0 million from $27.9 million in 2002, net income increased 33% to $21.6 million in 2003 from $16.3 million in 2002, and diluted earnings per share increased 36% to $0.15 from $0.11 in 2002.
"QIAGEN experienced a successful second quarter in 2003 both in terms of financial results and in terms of expansion of the Company's strategic position," said Dr. Metin Colpan, QIAGEN's Chief Executive Officer. "Among other developments, we are very excited to see that the acquisitions we closed in 2002 were very successfully integrated into QIAGEN and significantly contributed to the expansion of our strategic positions. The magnetic particle-based nucleic acid purification solutions added through the acquisition of GenoVision leveraged QIAGEN's leading nucleic acid purification technologies and resulted in exciting new product offerings. The combined solutions exceeded targeted revenues and have been very well accepted in the marketplace."
"The performance of the siRNA product line which was formed through the acquisition of Xeragon, Inc. considerably exceeded targeted revenues and has created exciting integration opportunities with QIAGEN's core products. Our siRNA activities are highly synergistic with our nucleic acid handling, stablization and purification technologies and are showing significant momentum as demonstrated by recent announcements:
- QIAGEN and Novartis AG entered into a supply agreement targeting the field of siRNA. QIAGEN believes that this agreement one of the largest such agreements to date.
- QIAGEN and Intradigm initiated a partnership targeting siRNA applications
- QIAGEN and amaxa biosystems entered into an agreement to co-market amaxa's NucleofectorTM technology and QIAGEN's TOM-amidites based HPP grade siRNA. The combined solution has significant advantages for siRNA mediated gene silencing in primary cells.
- QIAGEN launched custom HPP grade siRNA products based on its proprietary TOM amidite chemistry for high throughput RNAi experiments and launched a new siRNA design resource.
- QIAGEN launched QIAGEN 4-for-siLENCING siRNA offerings, sets of four custom HPP Grade siRNA duplexes with performances guaranteed for efficient gene silencing."
QIAGEN also announced that it is progressing well on maximizing the strategic focus of its DNA oligonucleotide business which has shown significant increases in profitability in the second quarter. This focus is based on strengths including market leadership in gene set offerings which were recently expanded by the launch of the latest versions of Array-Ready Oligo SetsTM (AROS) for the human and mouse genomes - Version 3.0. The human AROS V3.0 contains 34,580 70mer (long-mer) probes representing 24,650 genes and 37,123 gene transcripts. The mouse AROS V3.0 contains 31,769 70mer probes representing 24,878 genes and 32,829 gene transcripts.
Detailed information on the Company's business and financial performance will be presented in the Company's conference call on August 5th, 2003 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/080503. A webcast of the conference call will be available at www.videonewswire.com/QIAGEN/080503.
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 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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