QIAGEN Reports Strong First Quarter 2004 Results
Venlo, The Netherlands, May 3, 2004 - QIAGEN N.V. (Nasdaq: QGENF; Frankfurt, Prime Standard: QIA) today announced the results of operations for its first quarter and three-month period ended March 31, 2004.
The Company reported that consolidated net sales for its first quarter 2004 increased 21% to $96.1 million, from $79.6 million for the same period in 2003. Operating income for the quarter, including restructuring and relocation charges increased 12% to $18.1 million from $16.1 million in the comparable period in 2003, and net income for the quarter increased 4% to $11.4 million from $11.0 million in the same quarter of 2003. Diluted earnings per share remained unchanged at $0.08, based on 148.8 million average shares and share equivalents outstanding in 2004 and 146.1 million average shares and share equivalents outstanding in 2003. Excluding the effect of restructuring and relocation charges, operating income increased 8% to $19.0 million from $17.7 million in the comparable period in 2003. Net income excluding these items increased 14% to $12.0 million from $10.5 million and diluted earnings per share increased 14% to $0.08 compared to $0.07 in 2003.
The reported consolidated net sales exceeded the Company's projections and diluted earnings per share were in line with the Company's guidance for the first quarter 2004 as communicated on February 18, 2004.
The restructuring and relocation charges in the first quarter 2004 of $941,000 were in-line with the Company's guidance and included expenses related to the continued relocation of QIAGEN's North American marketing and sales operations from Valencia, California to Germantown, Maryland. Restructuring and relocation charges in the first quarter of 2003 consisted of a charge of $1.6 million related to the closure and relocation of QIAGEN's Seattle facility.
"We are very pleased to start the new year by exceeding our projections for the first quarter," said Peer M. Schatz, QIAGEN's Chief Executive Officer. "The growth in revenues in the first quarter was driven by a strong and organic growth of 24% in our consumable business which represents nearly 80% of our overall revenues. In addition we observed a further acceleration in sales in North America to a growth rate of 12%. This growth is also driven by a reemerging demand for our products from our customers in the pharmaceutical industry.
Our strong, internal innovation engine is adding novel, highly efficient and effective solutions targeting our core markets. Highlights of such new product introductions include our magnetic particle-based consumable product line for the new BioSprint automation platforms as well as two CE-certified solutions for viral and genomic nucleic acid purification which are the first such approved products in the rapidly growing molecular diagnostics field. The demand for QIAGEN's core competencies in sample collection, stabilization, and purification as well as selected down-stream applications including Q-PCR and integrated gene silencing solutions is steadily increasing. Our outstanding level of commitment in providing state-of-the-art and proprietary enabling technologies addressing our customers' needs in all fields of life sciences, in both research and clinical applications will further expand and strengthen our leadership in these exciting growth markets."
- QIAGEN entered into a supply agreement with Memorial Sloan-Kettering Cancer Center (MSKCC) for patented TOM-protected phosphoramidites for siRNA chemical synthesis. This agreement allows MSKCC to synthesize siRNA molecules to target the human genome using superior nucleic acid chemistry.
- QIAGEN launched its second CE-certified purification kit for the highly regulated European molecular diagnostics markets according the directive that all human in vitro diagnostic applications have to be performed with CE-certified products. After the successful introduction of the first CE-certified in vitro diagnostic product, the QIAamp DSP DNA Blood Mini Kit, QIAGEN launched the second product the QIAamp DSP Virus Kit which is the first CE-certified stand alone manual sample preparation system for purification of viral nucleic acids and the first choice for virus diagnostics in regard to safety, sensitivity, universality and savings.
- QIAGEN launched a series of off-the-shelf human library siRNA sets, covering a broad gene family selection including kinases, GPCRs, apoptosis related genes, and oncogenes based on the HiPerformance siRNA design algorithm which QIAGEN has licensed from Novartis Pharmaceuticals. Along with the introduction of these library siRNA sets, QIAGEN also launched Custom siRNA sets where researchers provide their targeted genes of interest and QIAGEN provide siRNA design using the same Novartis algorithm.
- QIAGEN pre-launched BioSprint Workstations and Kits based on its exclusive agreement to co-market and co-promote Thermo Electron's (NYSE: TMO) KingFisher® instrumentation technology together with QIAGEN's magnetic bead based nucleic acid separation and purification technology for use in nucleic acid-based applications in research. QIAGEN will distribute the KF-ml and KF-96 under the QIAGEN brand BioSprint, BioSprint 15 and BioSprint 96. QIAGEN will develop nucleic purification kits to be used on the BioSprint and KingFisher workstations.
- QIAGEN launched the BioRobot Gene Expression - GeneChip®Target Prep System. The BioRobot Gene Expression system with the GeneChip Target Preparation Specialist Pack is a complete automated solution for preparing labeled cRNA targets for use with Affymetrix GeneChip arrays. By automating the steps from first-strand cDNA synthesis to fragmentation of cRNA, the system both saves hands-on time and standardizes the preparation of cRNA targets, enabling more precise GeneChip array results.
- QIAGEN opened a new subsidiary in the Netherlands. From May 15, 2004 QIAGEN Benelux B.V. will directly supply QIAGEN's complete range of integrated solutions, services, technical support, and online ordering facilities to molecular biologists in the Benelux region. QIAGEN will offer dedicated support and regionally focused services to its customers and develop standard-setting partnerships with opinion leading scientists in Belgium, the Netherlands, and Luxembourg.
- QIAGEN appointed Wolfgang Fries as Vice President Global Human Resources. He assumed responsibility for QIAGEN's world wide human resource management as Vice President Global Human Resources starting April 1, 2004. Mr. Fries will be a member of QIAGEN's Executive Committee.
Detailed information on the Company's business and financial performance will be presented in the Company's conference call on May 4, 2004 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/050404 . A webcast of the conference call will be available at http://www.firstcallevents.com/service/ajwz403512959gf12.html.
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, 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. QIAGEN 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, QIAGEN 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, 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 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).
Financial Information Saved in PDF Format