QUIDEL Reports Third Quarter Results - Net Income Up More Than 3-Fold on 30% Sales Increase
SAN DIEGO -- QUIDEL Corporation (Nasdaq: QDEL), a leading developer and marketer of rapid diagnostic tests, today announced record results for its third quarter and nine months ended December 31, 1996.
Net sales for the third quarter increased 30 percent over the prior year to $11.7 million. Net income for the quarter amounted to $1,805,000 (or eight cents per share) and represents an increase of $1,383,000, or 328 percent over the third quarter of the prior year.
This sales growth is primarily related to domestic professional sales of the Company's strep throat products. The Company's QuickVue(R) In-Line One- Step Strep A Test is the only one-step strep throat test in this market and the only test that can be sold without government limitation to any health care facility (termed "waived categorization" by the Centers for Disease Control and Prevention ("CDC")). The introduction of the CARDS(R) QS(R) and Concise(R) Performance Plus(TM) strep tests, not present in the prior year, also contributed to this quarter's sales growth. Strep throat product sales are seasonal and occur primarily within the fall and winter season (our third and fourth quarters).
Sales of the Company's QuickVue(R) H. Pylori Test also contributed to the sales growth as a result of the receipt of CDC waived categorization status in October, 1996. H. pylori is the bacterium that causes most stomach ulcers; as such, we believe there is a potential for significant growth in H. pylori test sales as market acceptance of therapeutic treatments grows.
Our efforts to increase H. pylori product sales include the recently announced co-promotion agreement with The Procter & Gamble Company ("P&G") whereby the P&G 300-person sales force will promote the use of QUIDEL's H. pylori test when making calls on physicians to communicate the benefits of their Helidac(R) Therapy.
"We are pleased to report record results for the quarter and nine months," said Steven T. Frankel, president and chief executive officer of QUIDEL.
"It is gratifying to see the significant accomplishments which have been announced over the past two years begin to translate into meaningful financial results."
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 acute and chronic conditions in the areas of reproductive and women's health, 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 Income
For the periods ended December 31,
Three Months Nine Months
(in thousands, except per share data)
FY 1997 FY 1996 FY 1997 FY 1996
Net sales $11,727 $ 9,044 $29,676 $25,654
*Contract research
and other revenue 710 209 2,141 479
Total revenues 12,437 9,253 31,817 26,133
Gross profit 6,369 4,796 15,806 13,771
*Research and development 1,595 1,014 5,044 2,991
Sales and marketing 2,560 2,612 7,680 7,994
General and administrative 997 866 2,691 2,542
Total operating expenses 5,152 4,492 15,415 13,527
Net income $1,805 $ 422 $ 2,206 $ 446
Net income per share $.08 $.02 $.10 $.02
Shares used in
computing net income
per share 22,374 23,056 22,604 22,550
* Increased contract research revenue relates primarily to QUIDEL's new influenza collaboration with Glaxo Wellcome and offsets an increase in research and development expense and other administrative expenses associated with the program.
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 discussed in the Company's Annual Report on Form 10-K and subsequent quarterly reports on Form 1O-Q. Copies of Forms 1O-K and 1O-Q are available from the Company upon request. For more information, visit the Company's web site at quidel.com.
/NOTE TO EDITORS: A conference call will be held today at 1:15 p.m. PST
(4:15 p.m. EST). To participate, call 212-478-3020 at that time. The access number is 902061./
/CONTACT: Steven T. Frankel, President & Chief Executive Officer,
QUIDEL
Corporation, 619-552-7902, or Steven C. Burke, Chief Financial Officer, QUIDEL
Corporation, 619-552-7960/
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