QUIDEL Reports FY 1998 First Quarter Results (NOT GOOD)
Revenue and Net Decline Due to Production Shortfalls and Stepped-Up
Royalty Payments
SAN DIEGO, July 25 /PRNewswire/ -- QUIDEL Corporation (Nasdaq:QDEL) said net sales for its first fiscal quarter ended June 30 declined three percent, or $300,000, to $8,747,000 from $9,047,000 a year ago.
The revenue decline occurred despite increased product demand and was principally due to the company's inability to ship orders totaling approximately $773,000, which represented the increase in order backlog in the current quarter.
The company said unexpected component shortages and other temporary production delays caused the shipment shortfall.
``We expect to resolve these production issues and to fill these back orders early in the second fiscal quarter,'' said Steven T. Frankel, QUIDEL's president and chief executive officer.
Net loss for the quarter ended June 30 was $791,000, or three cents a share, versus net income of $193,000, or one cent a share, in the year-ago period.
The loss was due to decreased revenue, higher royalty payments, and non- recurring litigation costs.
The company said it expects to eliminate the future impact of the added royalty expense
through manufacturing cost reductions, higher productivity, and new product introductions
which will be phased in during the balance of its current fiscal year.
Gross profit in the current quarter was impacted by reduced sales volume, higher production
costs associated with the production issues noted above, and the increase in royalty expense
associated with patent licenses, effective April 1, 1997, resulting from the settlement of the
Becton Dickinson (``BD'') lawsuit. Total royalty expense amounted to 5% of sales in the
current quarter vs. 1% of sales in the prior year period.
Operating expenses also increased in the quarter reflecting the one-time costs associated with
the BD lawsuit settlement and the estimated costs associated with other legal matters.
QUIDEL Corporation discovers, develops, manufactures, and markets rapid
immunodiagnostic products for point-of-care detection of human medical conditions and
illnesses. These products provide simple, accurate, and cost- effective diagnoses for human
fertility, infectious diseases, allergies and autoimmune disorders. QUIDEL's products are sold
to professionals in the physician's office and clinical laboratory, and to consumers through
retail drug stores.
QUIDEL Corporation
Condensed Consolidated Statements of Operations
For the three months ended June 30,
(In thousands, except per share data) FY 1997 FY 1996
Net sales $8,747 $9,047
Research contracts and royalties 622 665
Total revenues 9,369 9,712
Gross profit 4,030 4,777
As a percentage of sales 46% 53%
Operating expenses:
Research and development 1,747 1,732
Sales and marketing 2,543 2,607
General and administrative 1,157 816
Total operating expenses 5,447 5,155
Net income (loss) $(791) $193
Net income (loss) per share $(.03) $.01
Shares used in per share calculation 23,552 22,962
This press release contains forward-looking statements regarding QUIDEL and its future
sales-related activities. Actual results could differ materially from those described or implied in
this press release as a result of a number of factors, including, but not limited to, the future
growth of the waived-only markets, any adverse actions by the Company's distribution
partners, competitive products, other economic factors affecting the Company's markets, the
degree of acceptance that new products achieve, and seasonality, as certain of these items
have been discussed in the Company's annual Report on Form 10-K and subsequent
quarterly reports on Form 1O-Q.
NOTE: A conference call will be held today at 6:30 AM PDT (9:30 AM EDT). To
participate, call 212-478-3020 at that time. The access number is 727975.
SOURCE: QUIDEL Corporation
Contact: Steven T. Frankel, President and Chief Executive Officer, 619-552-7902, or Steven C. Burke, Chief
Financial Officer, 619-552-7960, both of QUIDEL |
