* 18% Revenue Growth, 13% Constant Currency and 11% Organic Growth * 17% Adjusted Net Income Growth * $0.14 Adjusted EPS
VENLO, The Netherlands, May 7, 2007 (PRIME NEWSWIRE) -- QIAGEN N.V. (Nasdaq:QGEN) (Frankfurt:QIA) today announced the results of operations for its first quarter ended on March 31, 2007.
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QIAGEN's First Quarter
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Q1 2007 Q1 2006 Growth
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Net sales (US$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 www.qiagen.com/goto/080507. A webcast of the conference call will be available on the same website at www.qiagen.com/goto/080507.
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.
About QIAGEN:
QIAGEN N.V., a Netherlands holding company is the leading provider of innovative sample and assay technologies and products. QIAGEN's products are considered standards in pre-analytical sample preparation and assay solutions in research for life sciences, applied testing and molecular diagnostics. QIAGEN has developed a comprehensive portfolio of more than 500 proprietary consumable products and automated solutions for sample collection, nucleic acid and protein handling, separation, and purification and open and target-specific assays. QIAGEN's products are sold to academic research markets, to leading pharmaceutical and biotechnology companies, to applied testing customers (such as in forensics, veterinary, biodefense and industrial applications) as well as to molecular diagnostics laboratories.
In this press release QIAGEN is using the term molecular diagnostics. The use of this term in certain countries, such as the United States, is limited to products subject to regulatory requirements. Current QIAGEN molecular diagnostics products are 34 EU CE IVD assays, six EU CE IVD sample preparation products, one 510k PAX RNA product, nine China SFDA IVD assays and 98 general purpose reagents.
QIAGEN employs more than 1,900 people worldwide. QIAGEN products are sold through a dedicated sales force and a global network of distributors in more than 40 countries. Further information about QIAGEN can be found at www.qiagen.com.
The QIAGEN N.V. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3692
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, markets, strategy or 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 and risks of dependency on logistics), variability of operating results, the commercial development of the applied testing markets, clinical research markets and proteomics markets, 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 fluctuations due to the level and timing of customers' funding, budgets, and other factors), difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors' products, market acceptance of QIAGEN's new products, the integration of acquired technologies and businesses, and the timing of product introductions by our commercial partners. For further information, refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission.
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three months
ended March 31,
2007 2006
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Net sales $ 127,879,000 $ 108,715,000
Cost of sales 38,929,000 32,884,000
Cost of sales--acquisition related -- 461,000
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Gross profit 88,950,000 75,370,000
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Operating Expenses:
Research and development 11,531,000 10,188,000
Sales and marketing 31,303,000 26,419,000
General and administrative 13,624,000 11,529,000
Purchased in-process research
and development -- 200,000
Acquisition, integration and
related costs 690,000 284,000
Acquisition related intangible
amortization 2,598,000 1,505,000
Relocation and restructuring costs 408,000 --
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Total operating expenses 60,154,000 50,125,000
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Income from operations 28,796,000 25,245,000
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Other Income (Expense):
Interest income 5,166,000 2,010,000
(Interest expense) (4,691,000) (1,458,000)
Other (expense) income, net (254,000) 781,000
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Total other income 221,000 1,333,000
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Income before provision for
income taxes 29,017,000 26,578,000
Provision for income taxes 9,150,000 8,998,000
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Net income $ 19,867,000 $ 17,580,000
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Weighted average number of diluted
common shares 156,199,000 152,278,000
Diluted net income per common share $ 0.13 $ 0.12
Diluted net income per common share
excluding acquisition, integration
and restructuring related charges as
well as amortization of acquired IP
and equity-based compensation
(SFAS 123R) $ 0.14 $ 0.13
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2007 2006
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Assets (unaudited)
Current Assets:
Cash and cash equivalents $ 386,070,000 $ 430,357,000
Marketable securities 98,805,000 52,782,000
Notes receivable 5,817,000 4,247,000
Accounts receivable, net 85,980,000 80,429,000
Income taxes receivable 5,712,000 2,901,000
Inventories 66,336,000 64,085,000
Deferred income taxes 19,942,000 18,627,000
Prepaid expenses and other 34,197,000 29,763,000
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Total current assets 702,859,000 683,191,000
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Long-Term Assets:
Property, plant and equipment, net 224,124,000 221,277,000
Goodwill 153,383,000 160,141,000
Intangible assets, net 131,388,000 118,492,000
Deferred income taxes 10,660,000 2,409,000
Other assets 27,251,000 26,502,000
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Total long-term assets 546,806,000 528,821,000
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Total assets $1,249,665,000 $1,212,012,000
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Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ 6,687,000 $ 6,599,000
Current portion of capital
lease obligations 821,000 823,000
Accounts payable 21,455,000 23,806,000
Accrued and other liabilities 74,592,000 66,197,000
Income taxes payable 22,315,000 13,746,000
Deferred income taxes 5,973,000 5,360,000
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Total current liabilities 131,843,000 116,531,000
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Long-Term Liabilities:
Long-term debt, net of
current portion 490,122,000 489,592,000
Capital lease obligations,
net of current portion 12,010,000 12,009,000
Deferred income taxes 22,426,000 21,705,000
Other 5,770,000 6,010,000
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Total long-term liabilities 530,328,000 529,316,000
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Shareholders' Equity:
Common shares, EUR .01 par value:
Authorized--260,000,000 shares
Issued and outstanding--
150,509,751 shares in 2007
and 150,167,540 shares in 2006 1,539,000 1,535,000
Additional paid-in-capital 182,137,000 178,656,000
Retained earnings 357,622,000 344,739,000
Accumulated other
comprehensive income 46,196,000 41,235,000
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Total shareholders' equity 587,494,000 566,165,000
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Total liabilities and -------------- --------------
shareholders' equity $1,249,665,000 $1,212,012,000
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