Steve,
I listened in on the conference call today and it was nothing but good -besides what was already reported in the press release, Mr Frankel reported that the big increase in revenues came from "domestic professional" sales- sales to us doctors, hospitals,etc.-which were up a whopping 88% over the 3rd quarter sales last year!!
He also stated how the results show just how strongly leveraged Quidel really is, stating that, once they reached the 9.1 million mark in sales, a little better than 50% of each additional dollar in revenue drops straight to the bottom line. He also said comparative sales for the 3rd quarter and for the first 9 months of fy97 vs fy 96 were up approximately 30% and 16% respectively, and, if I understood him correctly in response to the expected future growth rate, he felt it would be approximately "half way between those figures" of 16% and 30%- so I guess they are expecting an annual growth rate of approx. 23% or so in sales. He also confirmed that the P+G copromotion beginning 2-97 will increase their sales and marketing expense somewhat (the cost of the free samples, etc.) but they hope to feel pretty immediate results from this deal-at least in the 1st quarter of fy98 (beginning 4-1-97). He again pointed out that this market is new and undeveloped, but has great potential and they plan on using their H. pylori sales to lessen some of the seasonality of QDEL sales. They also intend to take full advantage of their CLIA waivers in strep a test and H pylori as shown by this quarter. Very upbeat call- I look forward to a bright future with rapidly expanding sales and net profits. Oh yea, he also said the sales growth estimates were based on their current products alone, not any new products which may come along (which he didn't discuss, only noting a slight increase in unreimbursed R + D expense due to some "clinical trials" of some type - SAFEPLAN??? Hang in there for the long run and we'll all be happy.
BOB |
