reagents, materials, equipment and instrument "genomics" trickle down,
or "secondary genomics". A great place to go looking for rally
potential.
Tuesday February 22, 2:00 am Eastern Time
Company Press Release
SOURCE: QIAGEN N.V.
QIAGEN Reports Fourth-Quarter and Fiscal 1999
Year-End Results
VENLO, Netherlands, Feb. 22 /PRNewswire/ -- QIAGEN N.V. (Nasdaq: QGENF - news; Neuer Markt: QIA) today
announced financial results for its fourth quarter and fiscal year ended December 31, 1999.
The Company reported that consolidated net sales for its fourth quarter 1999 increased 30% to $39.1 million, from $30.1
million for the same period in 1998. Excluding the effect of purchased in-process research and development related to the
acquisition of Rapigene Inc., operating income for the fourth quarter 1999 increased 113% to $7.5 million from $3.5 million in
the comparable period in 1998 and net income for the quarter ended December 31, 1999 increased 47% to $5.5 million from
$3.7 million in the same quarter of 1998. Excluding the effect of purchased in-process research and development related to the
acquisition of Rapigene Inc., diluted earnings per share increased to $0.16 (based on 34.9 million average shares outstanding)
from $0.11 (based on 34.5 million average shares outstanding) in the comparable quarter of 1998.
For the fiscal year 1999, total reported net sales increased 31% to $144.0 million from $110.2 million in the comparable
period of 1998. Excluding the effect of purchased in-process research and development related to the Rapigene Inc.
acquisition, operating income for the 1999 fiscal year increased 80% to $26.5 million from $14.7 million in 1998 and net
income for 1999 increased 42% to $17.7 million from $12.4 million in 1998. Excluding the effect of purchased in-process
research and development related to the Rapigene Inc. acquisition, diluted earnings per share for the year 1999 increased to
$0.51 (based on 34.7 million average shares outstanding) from $0.36 (based on 34.5 million average shares outstanding) for
1998. Cash and cash equivalents along with marketable securities at December 31, 1999 totaled $44.2 million.
In December 1999, QIAGEN N.V. acquired 100% of the outstanding shares of Rapigene Inc. In the financial statements for
the period, the Company recorded an after tax charge of $5.1 million (or $0.15 a share) for purchased in-process research and
development. In addition, based on the preliminary purchase price allocation QIAGEN intends to amortize approximately $4.8
million of developed technology and goodwill related to this transaction over a period of seven and 10 years, respectively.
''1999 was a very exciting year for QIAGEN,'' said Dr. Metin Colpan, QIAGEN's Chief Executive Officer. ''We announced
several strategic acquisitions and collaborations as part of our continued expansion into several key, highly visible, high growth
markets which we have targeted because of their growth potential. The expansion of the markets we serve and the promising
developments within those markets are building a strong basis for QIAGEN's future growth.''
Highlights of 1999:
-- QIAGEN acquired Rapigene Inc., a leader in the area of innovative,
enabling technologies and services for single nucleotide polymorphism
(SNP) analyses as well as other genomic applications.
-- QIAGEN formed an alliance with Zeptosens AG, which intends to build on
the powerful combination of Zeptosens' proprietary and innovative
planar waveguide (PWG) platform detection technology.
-- QIAGEN and Affymetrix Inc. signed an agreement to develop and
commercialize nucleic acid sample preparation solutions, which are
optimized for use with Affymetrix' GeneChip® arrays.
-- QIAGEN announced that it would be a key participant in a multi-company
strategic alliance with SciQuest.com. This alliance combines the market
leading product offerings of prominent companies supplying the life
science industry into SciQuest.com's comprehensive electronic
marketplace services to sell scientific and laboratory products.
-- QIAGEN formed a joint venture with Becton Dickinson, called
PreAnalytiX, to develop, manufacture and market integrated systems for
collection, stabilization, and the purification of nucleic acids used
in molecular diagnostic testing.
-- The QIAamp viral RNA extraction technology, received approval in
Germany for screening blood supplies in combination with Roche's Cobas
Amplicor System.
-- QIAGEN joined the Valentis-DSM biologics alliance (pAlliance) in the
manufacturing and sales of Plasmid DNA.
-- QIAGEN and Evotec formed a joint venture to develop and commercialize
high-throughput systems for nucleic acid analysis.
During the year, QIAGEN experienced growth in all of its product segments, added significant new technologies and
introduced 24 new products addressing nucleic acid extraction, purification, handling or amplification needs. In addition, the
Company grew to over 1,000 employees from approximately 800 at the end of 1998.
QIAGEN N.V., a Netherlands holding company with subsidiaries in Germany, the United States, Japan, the United Kingdom,
Switzerland, France, Australia 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 280 proprietary, consumable products for nucleic acid separation, purification and handling, nucleic acid
amplification, as well as automated instrumentation 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 1,000 people worldwide. Further information on QIAGEN can be found at 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), variability of operating results, the commercial
development of the DNA sequencing and genomics market, 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 the Company's products to integrated
solutions and producing such products, and the Company's ability to identify and develop new products and to differentiate its
products from competitors. For further information, refer to the discussion in reports that the Company has filed with the U.S.
Securities and Exchange Commission (SEC).
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three months
ended December 31,
1999 1998
Net sales $39,128,000 $30,144,000
Cost of sales 11,074,000 8,592,000
Gross profit 28,054,000 21,552,000
Operating Expenses:
Research and
development 4,791,000 3,704,000
Sales and marketing 9,559,000 9,522,000
General and
administrative 6,243,000 4,822,000
In-process research
& development 5,100,000 --
Total operating
expenses 25,693,000 18,048,000
Income from operations 2,361,000 3,504,000
Other Income (Expense):
Interest income 541,000 380,000
Interest expense (357,000) (340,000)
Research and development
grants 343,000 592,000
Sale of patents 103,000 --
Gain on foreign currency
transactions 98,000 95,000
Loss from equity
method investee (336,000) --
Other miscellaneous
income, net 274,000 (173,000)
Total other income 666,000 554,000
Income before provision
for income taxes
and minority interest 3,027,000 4,058,000
Provision for income taxes 2,681,000 416,000
Minority interest (12,000) (79,000)
Net income $358,000 $3,721,000
Weighted average
number of common shares
and common share
equivalents 34,904,000 34,536,000
Diluted net income
per common share $0.01 $0.11
Diluted net income
per common share
-excluding in-process
research and development
charge $0.16 $0.11
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Twelve months
ended December 31,
1999 1998
Net sales $143,960,000 $110,248,000
Cost of sales 39,961,000 32,769,000
Gross profit 103,999,000 77,479,000
Operating Expenses:
Research and development 16,271,000 12,844,000
Sales and marketing 38,457,000 31,672,000
General and administrative 22,804,000 18,295,000
In-process research
& development 5,100,000 --
Total operating expenses 82,632,000 62,811,000
Income from operations 21,367,000 14,668,000
Other Income (Expense):
Interest income 1,679,000 1,575,000
Interest expense (1,306,000) (1,021,000)
Research and development
grants 1,116,000 1,811,000
Sale of patents 138,000 --
Gain on foreign currency
transactions 420,000 575,000
Loss from equity
method investee (637,000) --
Other miscellaneous
income, net 336,000 79,000
Total other income 1,746,000 3,019,000
Income before provision
for income taxes
and minority interest 23,113,000 17,687,000
Provision for income taxes 10,347,000 5,105,000
Minority interest 149,000 148,000
Net income $12,617,000 $12,434,000
Weighted average number
of common shares
and common share
equivalents 34,716,000 34,514,000
Diluted net income
per common share $0.36 $ 0.36
Diluted net income
per common share
- excluding in-process
research and development
charge $0.51 $0.36
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
1999 1998
Assets
Current Assets:
Cash and cash
equivalents $12,140,000 $ 6,343,000
Marketable securities 32,020,000 23,783,000
Notes receivable 1,994,000 892,000
Accounts receivable, net 20,148,000 16,986,000
Income taxes receivable 221,000 160,000
Inventories 22,498,000 19,931,000
Prepaid expenses
and other 3,182,000 2,986,000
Deferred income taxes 4,928,000 4,048,000
Total current assets 97,131,000 75,129,000
Property, plant and
equipment, net 37,974,000 26,420,000
Intangible assets, net 8,722,000 4,591,000
Other assets 4,290,000 1,530,000
Total assets $148,117,000 $107,670,000
Liabilities and
Shareholders' Equity
Current Liabilities:
Lines of credit $-- $720,000
Short-term debt 4,819,000 6,802,000
Current portion of
long-term debt 236,000 279,000
Current portion of
capital lease
obligations 1,098,000 1,277,000
Note payable 12,000,000 --
Accounts payable 10,468,000 9,190,000
Accrued liabilities 9,418,000 6,987,000
Income taxes payable 1,690,000 2,769,000
Deferred income taxes 89,000 976,000
Total current liabilities 39,918,000 29,000,000
Long-Term Liabilities:
Long-term debt, net of
current portion 4,119,000 283,000
Capital lease obligations,
net of current portion 11,094,000 5,046,000
Other 324,000 180,000
Total long-term
liabilities 15,537,000 5,509,000
Minority interest in
consolidated subsidiaries 269,000 120,000
Commitments and
Contingencies
Shareholders' Equity:
Common shares, .01 EUR
par value in 1999
and .03 NLG par value in 1998:
Authorized -- 65,000,000 shares
Issued and outstanding --
34,397,638 shares
in 1999 and 34,169,046
shares in 1998 351,000 596,000
Additional
paid-in-capital 58,152,000 49,005,000
Retained earnings 38,458,000 25,841,000
Accumulated other
comprehensive
income (loss) (4,568,000) (2,401,000)
Total shareholders'
equity 92,393,000 73,041,000
Total liabilities
and shareholders'
equity $ 148,117,000 $107,670,000
SOURCE: QIAGEN N.V. |
