>>QIAGEN Reports Strong First Quarter 2007 Results
Monday May 7, 4:00 pm ET
* 18% Revenue Growth, 13% Constant Currency and 11% Organic Growth
* 17% Adjusted Net Income Growth
* $0.14 Adjusted EPS
VENLO, The Netherlands, May 7, 2007 (PRIME NEWSWIRE) -- QIAGEN N.V. (NasdaqGS:QGEN - News) (Frankfurt:QIA.F - News) today announced the results of operations for its first quarter ended on March 31, 2007.
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QIAGEN's First Quarter
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Q1 2007 Q1 2006 Growth
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Net sales (US$m) 127.9 108.7 18%
Operating margin, adj.(1) 26% 26%
Net income, adj. (US$)(1) 22.6 19.2 17%
EPS, adj. (US$) (1)1 0.14 0.13
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(1) excluding acquisition, integration and restructuring related
charges as well as amortization of acquired IP and equity-based
compensation (SFAS 123R)
Consolidated net sales for our first quarter 2007 increased 18% to $127.9 million from $108.7 million for the same period in 2006. Reported operating income for the quarter increased 14% to $28.8 million from $25.2 million in the same quarter of 2006, and net income for the quarter increased 13% to $19.9 million from $17.6 million in the same quarter of 2006. Diluted earnings per share for the first quarter increased 8% to $0.13 in 2007 (based on 156.2 million weighted average shares) from $0.12 in 2006 (based on 152.3 million weighted average shares).
On an adjusted basis, first quarter operating income increased 18% to $32.8 million in 2007 from $27.8 million in 2006, and first quarter 2007 adjusted net income increased 17% to $22.6 million from $19.2 million in 2006. Adjusted diluted earnings per share in the first quarter 2007 increased 8% to $0.14 per share, from $0.13 per share in the first quarter 2006.
We have regularly reported adjusted results to give an additional insight into our financial performance. Adjusted results should be considered in addition to the reported results prepared in accordance with generally accepted accounting principles, but should not be considered a substitute. We believe certain items should be excluded from our adjusted results when they are either outside of our ongoing core operations or vary significantly from period to period, which affects the comparability of our results with our competitors and our own prior periods. Costs and charges excluded from adjusted results include acquisition, integration, restructuring and related costs, acquisition-related amortization, and compensation cost due to equity based compensation in accordance with Statement of Financial Accounting Standards No. 123 (SFAS 123R).
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QIAGEN's Adjustments to Operating Income, Net Income and EPS
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In US$ millions unless indicated Q1 2007 Q1 2006
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Operating income, reported 28.80 25.25
Acquisition and integration
related charges 0.69 0.95
Relocation and restructuring
charges 0.40 --
SFAS 123R Impact 0.33 0.08
Amortization of acquired IP 2.60 1.50
Operating income, adjusted 32.82 27.78
Net income, reported 19.87 17.58
Acquisition and integration
related charges 0.47 0.64
Relocation and restructuring
charges 0.31 --
SFAS 123R Impact 0.21 0.05
Amortization of acquired IP 1.70 0.95
Net income, adjusted 22.56 19.22
Weighted average number of
diluted common shares 156,199,000 152,278,000
EPS, reported in US$ 0.13 0.12
EPS, adjusted in US$ 0.14 0.13
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``QIAGEN experienced a strong start into 2007,'' said Peer Schatz, QIAGEN's Chief Executive Officer. ``We saw strong revenue growth and exciting momentum in our strategic position. In the first quarter of 2007 we launched 13 new products in the area of sample and assay technologies and are managing a strong pipeline of new products.''
``We are pleased with our financial performance in this first quarter of 2007. Reported revenues and adjusted earnings per share came in very strong and operating income was in-line with expectations,'' said Roland Sackers, QIAGEN's Chief Financial Officer. ``Revenue growth for the first quarter was 18% and was fueled by a strong organic growth of 11% and a positive contribution of 2% from acquisitions. Our consumable portfolio contributed 15% growth. QIAGEN's instrumentation business showed a very strong growth rate at constant exchange rates of 40%. This number does not include the recently introduced QIAcube which started to ship late April and which is showing a very strong demand across all of our market segments. Net sales for the first quarter 2007 recorded in North America represented approximately 39% of our overall business and recorded a growth rate of 5% while European sales, which represent approximately 46% of our revenues showed a growth rate of approximately 14% at constant exchange rates. Net sales in Asia showed a very strong growth rate of 48% at constant exchange rates driven by strong demand, primarily in China as well as from our geographical expansion in Singapore and Korea.''
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QIAGEN's First Quarter 2007 at Constant Currencies
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2007 2007 2006 Growth Rates
As percentage Q1 Q1 Q1
of net sales, Reported Constant Reported Reported Constant
unless indicated Currency Currency
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Consumables 89% 89% 91% 15% 11%
Instruments 10% 10% 8% 46% 40%
Others 1% 1% 1% -11% -15%
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Total revenues 100% 100% 100% 18% 13%
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Operating income
margin 23% 23% 23% 14% 10%
Operating income
margin, adj.(1) 26% 26% 26% 18% 14%
Net income margin 16% 16% 16% 13% 11%
Net income margin,
adj.(1) 18% 18% 18% 17% 15%
EPS in US$ per
share 0.13 0.13 0.12 8% 8%
EPS in US$ per
share, adj.(1) 0.14 0.14 0.13 8% 8%
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(1) excluding acquisition, integration and restructuring related
charges as well as amortization of acquired IP and equity-based
compensation (SFAS 123R)
Detailed information on QIAGEN's business and financial performance will be presented in its conference call on May 8, 2007 at 9:30am EST. The corresponding presentation slides will be available for download on QIAGEN's website at qiagen.com. A webcast of the conference call will be available on the same website at qiagen.com.
QIAGEN -- Sample and Assay Technologies Highlights:
* QIAGEN developed and launched 13 new products during the first
quarter 2007 around innovative sample and assay technologies for
research in the areas of gene expression, micro RNA, proteomics,
RNAi and molecular diagnostics.
* QIAGEN launched the QIAcube, a revolutionary sample processing
platform incorporating novel and proprietary technologies which
allow users in over 40,000 laboratories in research in life
sciences, applied testing and molecular diagnostics to fully
automate the processing of almost all QIAGEN consumable products.
The QIAcube received the distinguished New Product Award (NPA)
Designation of the Association for Laboratory Automation (ALA) in
February, 2007.
* QIAGEN signed an agreement to acquire eGene, Inc., an early-stage
company that has developed and is commercializing a patented sample
separation and analysis technology based on capillary
electrophoresis. eGene's HDA system together with its consumables
provide quality control capabilities following our customers' use
of our sample technologies as well as a readout system for our
assay technologies in one platform. The system can be used as a
readout platform for a number of research and other applications
including Human Leukocyte Antigen (HLA) testing market, genetic
testing including microsatellite analyses, DNA post-PCR separation
and analysis at different resolutions, and RNA integrity quality
control. The acquisition is subject to customary closing
conditions, including eGene stockholder approval.<<
snip
This amounts to a slight beat on revenues, but not enough to beat on EPS. And I guess we're not getting guidance until tomorrow's CC. Stock up slightly after hours. Things seem to be chugging right along, and I continue to hold for the long haul.
Cheers, Tuck |
