* 34% Constant Currency and 12% Organic Revenue Growth in 2007
* 31% Growth in Adjusted Net Income in 2007
* Fourth Quarter 2007 Adjusted EPS Exceeds Guidance by $0.02
* Guidance 2008: Revenues $875 to $905 million (growth rate 35% to 40%)
Adj. EPS $0.76 to $0.80
VENLO, The Netherlands, Feb. 11, 2008 (PRIME NEWSWIRE) -- QIAGEN N.V. (Nasdaq:QGEN) (Frankfurt:QIA) today announced the results of operations for the fourth quarter and the fiscal year ended December 31, 2007.
The reported net sales and adjusted earnings per share for the fourth quarter and fiscal 2007 exceeded the guidance provided by the Company on November 11, 2007.
QIAGEN's fourth quarter and fiscal 2007 results include the results of operations of Digene Corporation and eGene, Inc. from the dates of acquisition as well as charges related to these acquisitions.
Fourth Quarter 2007 Results
The Company reported that consolidated net sales for its fourth quarter 2007 increased 67% to $210.2 million from $125.9 million for the same quarter in 2006. Reported operating income for the quarter decreased 7% to $25.0 million from $26.9 million in the same quarter of 2006, and net income for the quarter decreased 23% to $15.0 million from $19.4 million in the same quarter of 2006. Diluted earnings per share for the fourth quarter decreased to $0.07 in 2007 (based on 205.2 million weighted average shares and share equivalents outstanding) from $0.13 in 2006 (based on 154.8 million weighted average shares and share equivalents outstanding).
On an adjusted basis, fourth quarter operating income increased 55% to $51.8 million in 2007 from $33.5 million in 2006, and fourth quarter 2007 adjusted net income increased 31% to $32.0 million from $24.4 million in 2006. Adjusted diluted earnings per share were $0.16 in both the fourth quarter 2007 and 2006.
---------------------------------------------------------------------
QIAGEN's Fiscal 2007 (in US$ millions, except per share information)
---------------------------------------------------------------------
FY 2007 FY 2006 Growth
---------------------------------------------------------------------
Net sales 649.8 465.8 40%
Operating income, adj.(1) 164.3 120.9 36%
Net income, adj.(1) 111.5 85.3 31%
EPS, adj.(1) (US$) 0.63 0.56 13%
---------------------------------------------------------------------
(1) excluding acquisition, integration and restructuring related
charges as well as amortization of acquired IP and
equity-based compensation (SFAS 123R) as detailed in the
table below.
Fiscal Year 2007 Results
For the year ended December 31, 2007, net sales increased 40% to $649.8 million compared to $465.8 million in 2006. Operating income as reported for fiscal 2007 decreased 17% to $83.1 million from $100.6 million for 2006, and net income decreased 29% to $50.1 million in 2007 from $70.5 million in 2006, and diluted earnings per share decreased to $0.28 in 2007 from $0.46 in 2006.
On an adjusted basis, operating income for the year ended December 31, 2007 increased 36% to $164.3 million from $120.9 million in 2006, and adjusted net income increased 31% to $111.5 million in 2007 from $85.3 million in 2006. Adjusted diluted earnings per share for the year ended December 31, 2007 increased 13% to $0.63 per share, from $0.56 per share in 2006.
QIAGEN has regularly reported adjusted results to give an additional insight into its financial performance. Adjusted results should be considered in addition to the reported results prepared in accordance with generally accepted accounting principles, but should not be considered a substitute. The Company believes certain items should be excluded from adjusted results when they are either outside of our ongoing core operations or vary significantly from period to period, which affects the comparability of results with the Company's competitors and its own prior periods. Costs and charges excluded from adjusted results include acquisition, integration, restructuring and related costs, acquisition-related amortization, and compensation cost due to equity based compensation in accordance with Statement of Financial Accounting Standards No. 123 (Revised) (SFAS 123R).
--------------------------------------------------------------------- QIAGEN's Adjustments to Gross Profit, Operating Income, Net Income and EPS --------------------------------------------------------------------- In US$ millions unless indicated Q4 2007 Q4 2006 FY 2007 FY 2006 --------------------------------------------------------------------- Gross profit reported 138.8 86.4 433.6 318.5 Acquisition related charges 1.5 0.3 2.8 2.1 Amortization of acquired IP 11.4 1.8 23.6 6.1 SFAS 123R impact 0.3 0.0 0.4 0.0 Gross profit, adjusted 152.0 88.5 460.4 326.7 Operating income, reported 25.0 26.9 83.1 100.6 Acquisition and integration related charges (incl. COS) 9.6 1.4 17.6 8.1 Purchased in-process research & development 0.0 1.9 25.9 2.2 Relocation and restructuring charges 0.0 0.7 0.6 1.5 Amortization of acquired IP (incl. COS) 14.8 2.5 31.3 8.2 SFAS 123R impact (incl. COS) 2.4 0.1 5.8 0.3 Operating income, adjusted 51.8 33.5 164.3 120.9 Net income, reported 15.0 19.4 50.1 70.5 Acquisition and integration related charges 6.1 1.0 11.3 6.1 Purchased in-process research & development 0.0 1.9 25.9 2.2 Relocation and restructuring charges 0.0 0.5 0.4 1.0 Amortization of acquired IP 9.4 1.6 20.0 5.3 SFAS 123R impact 1.5 0.0 3.8 0.2 Net income, adjusted 32.0 24.4 111.5 85.3 Weighted average number of basic common shares 194,852,000 150,009,000 168,457,000 149,504,000 Weighted average number of diluted common shares 205,233,000 154,783,000 175,959,000 153,517,000 EPS, reported in US$ 0.07 0.13 0.28 0.46 EPS, adjusted in US$ 0.16 0.16 0.63 0.56 ---------------------------------------------------------------------
"2007 was a very successful year for QIAGEN. We executed on our strategy and significantly increased our technology and market leadership in sample and assay technologies in all of our customer segments," said Peer Schatz, QIAGEN's Chief Executive Officer. "In particular, the integration of the rapidly growing QIAGEN molecular diagnostics business with Digene's in terms of size and growth comparable molecular diagnostics leadership in HPV testing resulted in a very strong leadership position for QIAGEN in molecular diagnostics overall. Molecular diagnostics today represents about 50% of our current sales and presents a very strong growth outlook.
"The launches of 72 new products in 2007 contributed 4% to 2007 net sales growth. This result is another demonstration of the success of QIAGEN's innovation strategy. New products included innovative sample and assay technologies for research in the areas of epigenetics, gene expression, micro RNA, proteomics, RNAi, applied testing and molecular diagnostics as well as innovative platform solutions such as the very successful QIAcube. Our full pipeline of new products and a strong strategic position build a solid basis for our success in 2008 and beyond.
"We expect a number of exciting new market introductions in 2008. These include a further expansion of our sample and assay technology portfolio for research in applied testing and molecular diagnostics. We are significantly investing in clinical trials for a number of molecular diagnostic products with the goal of adding more regulated products to our portfolio," Mr. Schatz added. "Our pipeline of automated solutions for our sample and assay technologies is exceptionally strong. The major launch within this portfolio was the launch of QIAsymphonySP in January -- the first module of a novel modular processing platform which can integrate entire workflows in molecular processing. QIAsymphony is already generating a lot of excitement and has the potential to bring significant value to our customers.
"Our acquisition strategy remained focused, consistent and value-creating, providing complementary technologies, new commercial capabilities and/or geographic reach. With the acquisition of Digene we added an exciting new product portfolio in women's health to our molecular diagnostics franchise, which approximated Digene's size and growth rates prior to the acquisition. This acquisition catapulted QIAGEN into a fast growing leadership position for sample and assay technologies in molecular diagnostics (excluding viral load and blood banking). Our assay portfolio is considered to be the broadest and our sales and marketing force in molecular diagnostics the most powerful in the industry.
"Even more exciting, we achieved our strong financial results in 2007 while experiencing significant strategic momentum and executing on a significant integration effort. I want to thank our employees around the world for their contributions to our performance in 2007 and to building long-term success and leadership for QIAGEN."
"QIAGEN experienced an exciting fourth quarter and fiscal year 2007. Reported revenues and adjusted earnings per share exceeded our increased guidance and reflected our good progress in integrating acquired businesses," said Roland Sackers, QIAGEN's Chief Financial Officer. "Revenue growth for the full year was 40% and was fueled by strong organic growth of 12% and positive contribution of 22% from acquisitions. Our consumable portfolio contributed 34% growth at constant exchange rates in 2007.
"QIAGEN's instrumentation products showed a very strong growth rate at constant exchange rates of 35% in 2007," Mr. Sackers continued. "Net sales for the fiscal year 2007 recorded in North America represented approximately 46% of our overall business and recorded a growth rate of 47% whereby European sales, which represent approximately 41% of our revenues, showed a growth rate of approximately 21% at constant exchange rates. Net sales in Asia showed a very strong growth rate of 39% at constant exchange rates in fiscal 2007 driven by a strong demand primarily in molecular diagnostics."
Guidance for 2008
QIAGEN expects revenues between $875 and $905 million in 2008 representing a revenue growth rate between 35% and 40% when compared to 2007 and adjusted diluted earnings per share between $0.76 and $0.80. The Company will provide detailed guidance in the Company's conference call on February 12, 2008.
Detailed information on the Company's business and financial performance will be presented in the Company's conference call on February 12, 2008 at 9:30 a.m. ET. The corresponding presentation slides will be available for download on the Company's website at www.qiagen.com/goto/120208. A webcast of the conference call will be available on the same website at www.qiagen.com/goto/120208.
QIAGEN -- Sample and Assay Technologies Highlights:
* QIAGEN introduced QIAsymphony SP, the first system of a novel
modular processing platform which can be integrated to automate
entire workflows -- from sample to result. The QIAsymphony offers
highest flexibility, convenience and safety for a broad range of
sample and assay applications.
* QIAGEN and BioOne* Capital entered into an joint venture to
establish Dx Assay Pte Ltd one of the first centers in Singapore for
assay development in which molecular diagnostics for infectious and
genetic diseases will be developed.
* QIAGEN has been awarded an exclusive contract by the Singapore
Ministry of Health to supply sample preparation solutions and
molecular tests for the specific detection of Influenza H5N1 viruses
(avian flu virus). The contract with the Singapore Ministry of
Health is the latest supply agreement of QIAGEN with public and
private institutions engaged in H5N1 surveillance. More than 80
institutes worldwide involved in the surveillance of avian flu
infection use procedures and reagents developed and offered by
QIAGEN.
---------------------------------------------------------------------
QIAGEN's Fiscal 2007 at Constant Currencies
---------------------------------------------------------------------
2007 Growth Rates
As percentage 2007 FY 2006 -------------------
of net sales, FY Constant FY Constant
unless indicated Reported Currency Reported Reported Currency
---------------------------------------------------------------------
Consumables 89% 89% 89% 40% 34%
Instruments 10% 10% 10% 40% 35%
Others 1% 1% 1% 30% 22%
---------------------------------------------------------------------
Total revenues 100% 100% 100% 40% 34%
---------------------------------------------------------------------
Gross margin 67% 67% 68% 36% 32%
Gross margin, adj.(1) 71% 71% 70% 41% 36%
Operating income
margin 13% 13% 22% -17% -20%
Operating income
margin, adj.(1) 25% 26% 26% 36% 33%
Net income margin 8% 8% 15% -29% -32%
Net income margin,
adj.(1) 17% 17% 18% 31% 28%
EPS in US$ per
share 0.28 0.27 0.46 -39% -41%
EPS in US$ per
share, adj.(1) 0.63 0.62 0.56 13% 11%
---------------------------------------------------------------------
(1) excluding acquisition, integration and restructuring related
charges as well as amortization of acquired IP and equity-based
compensation (SFAS 123R) as detailed in the table above.
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 areas such as 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. The company'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. QIAGEN employs more than 2,600 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, women's health/HPV testing markets, nucleic acid-based molecular diagnostics market, and genetic vaccination and gene therapy markets, changing relationships with customers, suppliers and strategic partners, 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), our ability to obtain regulatory approval of our infectious disease panels, 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 and the integration of acquired technologies and businesses. For further information, refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three months ended
December 31,
2007 2006
------------ ------------
Net sales $210,224,000 $125,891,000
Cost of sales 58,572,000 37,439,000
Cost of sales - acquisition related 1,496,000 301,000
Cost of sales - acquisition related
intangible amortization 11,359,000 1,789,000
------------ ------------
Gross profit 138,797,000 86,362,000
------------ ------------
Operating Expenses:
Research and development 22,844,000 11,012,000
Sales and marketing 56,230,000 32,054,000
General and administrative 23,172,000 12,075,000
Purchased in-process research
and development -- 1,900,000
Acquisition, integration and
related costs 8,126,000 1,082,000
Acquisition related intangible
amortization 3,354,000 674,000
Relocation and restructuring costs 60,000 667,000
------------ ------------
Total operating expenses 113,786,000 59,464,000
------------ ------------
Income from operations 25,011,000 26,898,000
------------ ------------
Other Income (Expense):
Interest income 3,669,000 5,559,000
(Interest expense) (11,099,000) (3,980,000)
Other income (expense), net 2,574,000 (653,000)
------------ ------------
Total other (expense) income (4,856,000) 926,000
------------ ------------
Income before provision for
income taxes and minority interest 20,155,000 27,824,000
Provision for income taxes 5,099,000 8,377,000
Minority interest income 56,000 --
------------ ------------
Net income $ 15,000,000 $ 19,447,000
============ ============
Weighted average number
of diluted common shares 205,233,000 154,783,000
Diluted net income per common share $ 0.07 $ 0.13
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) $ 0.16 $ 0.16
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Twelve months ended
December 31,
2007 2006
------------- -------------
Net sales $ 649,774,000 $ 465,778,000
Cost of sales 189,773,000 139,122,000
Cost of sales - acquisition related 2,839,000 2,046,000
Cost of sales - acquisition related
intangible amortization 23,615,000 6,135,000
------------- -------------
Gross profit 433,547,000 318,475,000
------------- -------------
Operating Expenses:
Research and development 64,935,000 41,560,000
Sales and marketing 164,690,000 115,942,000
General and administrative 71,932,000 48,574,000
Purchased in-process research
and development 25,900,000 2,200,000
Acquisition, integration and
related costs 14,708,000 6,061,000
Acquisition related intangible
amortization 7,711,000 2,085,000
Relocation and restructuring costs 538,000 1,452,000
------------- -------------
Total operating expenses 350,414,000 217,874,000
------------- -------------
Income from operations 83,133,000 100,601,000
------------- -------------
Other Income (Expense):
Interest income 19,509,000 16,359,000
(Interest expense) (31,455,000) (11,918,000)
Other income, net 4,539,000 1,026,000
------------- -------------
Total other (expense) income (7,407,000) 5,467,000
------------- -------------
Income before provision for
income taxes and minority interest 75,726,000 106,068,000
Provision for income taxes 25,555,000 35,529,000
Minority interest income 49,000 --
------------- -------------
Net income $ 50,122,000 $ 70,539,000
============= =============
Weighted average number of
diluted common shares 175,959,000 153,517,000
Diluted net income per
common share $ 0.28 $ 0.46
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) $ 0.63 $ 0.56
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31, December 31,
2007 2006
-------------- --------------
Assets
Current Assets:
Cash and cash equivalents $ 347,320,000 $ 430,357,000
Marketable securities 2,313,000 52,782,000
Notes receivable 5,139,000 4,247,000
Accounts receivable, net 136,707,000 80,429,000
Income taxes receivable 10,696,000 2,901,000
Inventories 88,346,000 64,085,000
Deferred income taxes 23,732,000 18,627,000
Prepaid expenses and other 33,693,000 29,763,000
-------------- --------------
Total current assets 647,946,000 683,191,000
-------------- --------------
Long-Term Assets:
Property, plant and equipment, net 283,491,000 221,277,000
Goodwill 1,107,882,000 160,141,000
Intangible assets, net 639,107,000 118,492,000
Deferred income taxes 72,128,000 2,409,000
Other assets 24,620,000 26,502,000
-------------- --------------
Total long-term assets 2,127,228,000 528,821,000
-------------- --------------
Total assets $2,775,174,000 $1,212,012,000
============== ==============
Liabilities and Shareholders' Equity
Current Liabilities:
Short term loans $ 4,000 $ --
Current portion of long-term debt -- 6,599,000
Current portion of capital lease
obligations 2,769,000 823,000
Accounts payable 40,379,000 23,806,000
Accrued and other liabilities 104,220,000 66,197,000
Income taxes payable 13,456,000 13,746,000
Deferred income taxes 4,903,000 5,360,000
-------------- --------------
Total current liabilities 165,731,000 116,531,000
-------------- --------------
Long-Term Liabilities:
Long-term debt, net of current
portion 950,000,000 489,592,000
Capital lease obligations, net of
current portion 33,017,000 12,009,000
Deferred income taxes 225,893,000 21,705,000
Other 8,405,000 6,010,000
-------------- --------------
Total long-term liabilities 1,217,315,000 529,316,000
-------------- --------------
Minority interest in consolidated
subsidiaries 553,000 --
-------------- --------------
Shareholders' Equity:
Common shares, EUR .01 par value:
Authorized -- 410,000,000 shares
Issued and outstanding --
195,335,076 shares in 2007 and
150,167,540 shares in 2006 2,175,000 1,535,000
Additional paid-in-capital 925,597,000 178,656,000
Retained earnings 388,779,000 344,739,000
Accumulated other comprehensive
income 75,024,000 41,235,000
-------------- --------------
Total shareholders' equity 1,391,575,000 566,165,000
-------------- --------------
Total liabilities and
shareholders' equity $2,775,174,000 $1,212,012,000
============== ==============