Move QGEN a little . . . Guess not; it's down some after hours on slightly lowered guidance:
>>VENLO, The Netherlands, November 7 /PRNewswire-FirstCall/ -- QIAGEN N.V. (NASDAQ: QGEN; Frankfurt, Prime Standard: QIA) today announced the results of operations for its third quarter and the nine-month period ended September 30, 2005.
The Company reported that consolidated net sales for its third quarter 2005 increased 9% to $98.7 million from $90.4 million for the same period in 2004. Using identical foreign exchange rates as used for the Company's guidance (communicated on February 15, 2005 and reiterated on August 9, 2005) net sales would have increased 13% to $101.8 million. Reported operating income for the quarter increased 24% to $25.9 million from $20.9 million in the same quarter of 2004, and net income for the quarter increased 40% to $17.6 million from $12.6 million in the same quarter of 2004. Diluted earnings per share for the third quarter increased 33% to $0.12 in 2005 from $0.09 in 2004.
Operating income in both periods includes acquisition-related amortization, integration costs and charges. The impact of these costs and charges during the third quarter 2005 totaled $1.5 million ($936,000 net of tax). In the third quarter of 2004, amortization on acquired intangibles, acquisition costs and expenses related to the Company's relocation and restructuring efforts totaled $3.1 million ($2.3 million net of tax). Excluding these costs and charges, for the third quarter 2005 as compared to the same period in 2004, operating income increased 14% to $27.4 million from $24.0 million, net income increased 27% to $18.6 million from $14.7 million, and diluted earnings per share increased 20% to $0.12 per share, from $0.10.
For the nine-month period ended September 30, 2005, net sales increased 3% to $294.1 million from $285.1 million in the comparable period of 2004. Excluding $20.3 million of net sales related to the former synthetic DNA business unit sold in the second quarter of 2004, consolidated net sales increased 11% from $264.8 million in the nine-month period ended September 30, 2004. Operating income as reported for the nine-month period ended September 30, 2005 increased 11% to $68.9 million from $61.9 million for the same period in 2004, net income increased 38% to $45.4 million from $32.9 million in 2004, and diluted earnings per share increased 36% to $0.30 from $0.22 in 2004. Excluding the effect of acquisition-related costs and charges of which $5.8 million ($4.0 million net of tax) and $6.4 million ($4.9 million net of tax) expensed in the nine month periods ended September 30, 2005 and 2004, respectively, and the effect of costs and charges related to the sale of QIAGEN's synthetic DNA business unit during the second quarter 2004, of $9.3 million ($4.0 million net of tax), operating income for the nine-month period ended September 30, 2005 increased 9% to $74.7 million from $68.3 million in 2004, net income increased 18% to $49.3 million in 2005 from $41.8 million in 2004, and diluted earnings per share increased 18% to $0.33 from $0.28 in 2004.
QIAGEN's Third Quarter 2005 at constant currencies:
2005 2005
Q3 Q3 2004 Growth Rates
Reported Constant Q3 Constant
Currency Reported Reported Currency
Consumables 89% 89% 84% 15% 15%
Instruments 10% 10% 13% -14% -14%
Other 1% 1% 3% -56% -56%
Total revenues 100% 100% 100% 9% 9%
Gross profit 70% 69% 66% 15% 14%
Operating income 26% 26% 23% 24% 22%
Operating
income, adj. (1) 28% 27% 27% 14% 12%
Net income 18% 18% 14% 40% 37%
Net income, adj. (1) 19% 18% 16% 27% 24%
EPS in US$ per share 0.12 0.12 0.09 33% 33%
EPS in US$, adj.(1) 0.12 0.12 0.10 20% 20%
(1) excluding acquisition, restructuring, integration and related charges as well as amortization on acquired IP
"Our operating performance was strong in the third quarter 2005. We are performing well with our QIAGEN sales organizations and our market share is expanding. Sales to OEM partners were soft, but these sales carry low margins. Our operating margins exceeded our targets and our organic growth rate is one of the highest in the industry," said Peer Schatz, QIAGEN's Chief Executive Officer. "We are especially pleased that our sales from new products are reaching record levels as measured as a percentage of sales and our innovation engine is working well. These are very good indicators for strong future performance. In addition, QIAGEN is also progressing very well on the integrations of RNAture, artus, Tianwei Biotech, LumiCyte and SuNyx. We are significantly increasing our opportunities and look forward to strong and focused growth for QIAGEN."
"QIAGEN experienced a positive third quarter in 2005. Our gross margin as well as our operating margin exceeded the Company's expectations and EPS were in line with the Company's projections," said Roland Sackers, QIAGEN's Chief Financial Officer. "Reported revenues were slightly below the Company's guidance adjusted for the January 2005 foreign exchange rates as two of our OEM partners in molecular diagnostics further delayed certain product launches which include QIAGEN instrument and consumable products. These unforeseen delays in our partners' product launches led to a shortfall in this quarter of approximately $2 million, primarily in instrumentation. This is reflected in a decline in the growth rate of QIAGEN's instrumentation business of -14%.QIAGEN believes that there is a good probability that our partners' currently delayed product launches will occur in late 2005 or early 2006. In addition, market conditions in Japan remained stable. We confirm our previous full-year guidance of $0.44-$0.47 earnings per share while excluding about $3 million from our revenue guidance for the fourth quarter 2005 due to delayed OEM revenues and $2 million due to a stable but soft market in Japan. QIAGEN's consumables business (in total approximately 89% of net sales) continued to post strong growth of approximately 15% in the third quarter 2005 compared to the third quarter 2004. This growth was mainly driven by focused and organic growth of existing and new product introductions and an increased demand from the diagnostics and pharmaceutical industry."
Highlights:
- QIAGEN agreed to acquire China-based Shenzen PG Biotech Co. Ltd., a molecular diagnostics leader in China.
- QIAGEN launched validated molecular diagnostic solutions for avian flu (H5N1) virus detection. QIAGEN's market and technology leading portfolio for such testing now includes a next generation real-time PCR (polymerase chain reaction)-based artus(TM) Influenza/H5 LC RT-PCR kit that sets new standards in the combination of sensitivity and speed and allows comprehensive detection of the influenza virus in human samples.
- QIAGEN acquired key assets of LumiCyte, Inc. and SuNyx GmbH: Nanotechnology-based "on-chip" sample preparation for MALDI mass spectrometry.
- QIAGEN launched human druggable genome siRNA Set V2.0 and sold the first such set to the Scripps Research Institute in Florida: Enables highly efficient and effective RNAi studies of 6'992 potential human druggable targets.
- QIAGEN entered into a co-marketing agreement with Xantos Biomedicine: co-marketing of QIAGEN's genome-wide RNAi library with Xantos' high-content, automated cell-based screening platform XantoScreenTM.
- QIAGEN entered into a co-operation with the Institut Curie to develop tools for high-throughput RNAi screening: This project is part of the BioPhenics project and targets the use of RNAi technology in conjunction with advanced systematic phenotypic analysis. It applies cell biology and microscopic imaging to cancer research, thereby improving target validation and accelerating cancer drug discovery.
- QIAGEN appointed Douglas Liu as Vice President Global Operations: Mr. Liu, who brings to QIAGEN twenty years of experience in leading roles in operations, strategic planning and R&D in different healthcare market segments including molecular diagnostics and immunodiagnostics will oversee QIAGEN's global operations including manufacturing, quality, logistics and infrastructure. Mr. Liu who joined from Bayer Healthcare as Head of Operations for Nucleic Acid Diagnostics in the US is a member of QIAGEN's Executive Committee.
- QIAGEN appointed Gerhard Sohn as Vice President Human Resources: Mr. Sohn, who brings to QIAGEN twenty five years of experience in leading roles in human resources in global organizations will oversee all of QIAGEN's HR-related activities including recruiting, HR-administration, development and benefits. Mr. Sohn joined from TNT Logistics, where he worked as Head of Global Human Resources and was responsible for 6,700 employees. He is 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 November 8, 2005 at 9:30am EST. The corresponding presentation slides will be available 60 minutes ahead of the conference call on the Company's website at www.qiagen.com/goto/110805. A webcast of the conference call will be available at www.qiagen.com/goto/110805. <<
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Cheers, Tuck |
