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Quidel Corporation (QDEL) Reports Third Quarter 2012 Financial Results


10/24/2012 8:28:30 AM

SAN DIEGO, CA--(Marketwire - October 23, 2012) - Quidel Corporation (NASDAQ: QDEL), a leading provider of rapid diagnostic testing solutions and cellular-based virology assays, announced today financial results for the third quarter ended September 30, 2012.

Third Quarter 2012 Highlights:

  • Revenues were $33.0 million.
  • Received CE Mark for Sofia® RSV Fluorescent Immunoasssay (FIA) test.
  • Entered into a new $140 million revolving credit facility.
  • Entered into an agreement with Life Technologies for the development of molecular assays for Life Technologies' new QuantStudio™ platform.

Third Quarter 2012 Results

Total revenues for the third quarter of 2012 were $33.0 million, compared to $33.1 million in the third quarter of 2011, as an increase in Pregnancy product revenues contributed to 7% growth in the Women's Health category, but was offset by a 2% decline in sales of Infectious Disease products.

Net loss for the third quarter of 2012 was $0.7 million, or $(0.02) per share, compared to net loss of $1.1 million, or $(0.03) per share, for the third quarter of 2011. On a non-GAAP basis, excluding amortization of intangibles and stock compensation expense, net income for the third quarter of 2012 was $2.6 million, or $0.08 per diluted share, compared to net income of $2.9 million, or $0.08 per diluted share, for the third quarter of 2011.

"Revenues in the third quarter were as anticipated, and consistent with a period of low influenza like illness (ILI) activity," said Douglas Bryant, president and CEO of Quidel Corporation. "We are pleased with our commercial efforts with Sofia to date, and with the continued progress we've made with product development."

Nine Months Ended September 30, 2012

Total revenues were $101.8 million for the nine-month period ended September 30, 2012 compared to $120.2 million for the nine months ended September 30, 2011. For the nine-month period in 2012, net loss was $3.7 million, or $(0.11) per share, compared to net income of $6.7 million, or $0.20 per diluted share, for the same nine-month period in 2011. On a non-GAAP basis, excluding amortization of intangibles and stock compensation expense, net income for the nine months ended September 30, 2012 was $6.6 million, or $0.19 per diluted share, compared to net income of $15.7 million, or $0.47 per diluted share, for the first nine months in 2011.

Non-GAAP Financial Information

The Company is providing non-GAAP financial information to exclude the effect of stock-based compensation and amortization of intangibles on earnings (loss) and net earnings (loss) per share as a supplement to its consolidated financial statements, which are presented in accordance with generally accepted accounting principles in the U.S., or GAAP.

Management is providing the adjusted net earnings (loss) and adjusted net earnings (loss) per share information for the periods presented because it believes this enables a better comparison of the Company's financial performance from period-to-period, and to that of its competitors. This press release is not meant to be considered in isolation, or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to the comparable GAAP measures is included in this press release as part of the attached financial tables.

Conference Call Information

Quidel management will host a conference call to discuss the results as well as other business matters today beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). During the conference call, management may answer questions concerning business and financial developments and trends. Quidel's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.

To participate in the live call by telephone from the U.S., dial (866) 800-8649 or from outside the U.S. dial (617) 614-2703, and enter the passcode 33672354.

A live webcast of the call can be accessed at http://www.quidel.com, and the Web site replay will be available for 14 days. The telephone replay will be available for 48 hours beginning at 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time) today by dialing (888) 286-8010 from the U.S., or (617) 801-6888 for international callers, and entering passcode 50837473.

About Quidel Corporation

Quidel Corporation serves to enhance the health and well being of people around the globe through the development of diagnostic solutions that can lead to improved patient outcomes and provide economic benefits to the healthcare system. Marketed under the QuickVue®, D3® Direct Detection and Thyretain® leading brand names, as well as under the new Sofia® brand, Quidel's products aid in the detection and diagnosis of many critical diseases and conditions, including, among others, influenza, respiratory syncytial virus, Strep A, herpes, pregnancy, thyroid disease and fecal occult blood. Quidel's research and development engine is also developing a continuum of diagnostic solutions from advanced lateral-flow and direct fluorescent antibody to molecular diagnostic tests to further improve the quality of healthcare in physicians' offices and hospital and reference laboratories. For more information about Quidel's comprehensive product portfolio, visit quidel.com and Diagnostic Hybrids at dhiusa.com.

                                                                            
                             QUIDEL CORPORATION                             
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
              (In thousands, except per share data; unaudited)              
                                                                            
                                                    Three months ended      
                                               September 30,  September 30, 
                                                    2012           2011     
                                               -------------  ------------- 
                                                                            
Total revenues                                 $      32,998  $      33,108 
                                                                            
Cost of sales (excludes amortization of                                     
 intangible assets from acquired businesses                                 
 and technology)                                      14,872         14,996 
Research and development                               5,085          5,884 
Sales and marketing                                    7,776          6,487 
General and administrative                             4,759          5,194 
Amortization of intangible assets from                                      
 acquired businesses and technology                    1,728          1,791 
                                               -------------  ------------- 
                                                                            
Total costs and expenses                              34,220         34,352 
                                               -------------  ------------- 
                                                                            
Operating loss                                        (1,222)        (1,244)
                                                                            
Interest expense                                        (286)          (485)
Interest income                                            8             42 
Other expense                                            (27)             - 
                                               -------------  ------------- 
                                                                            
Total other expense                                     (305)          (443)
                                               -------------  ------------- 
                                                                            
Loss before taxes                                     (1,527)        (1,687)
                                                                            
Benefit for income taxes                                (851)          (574)
                                               -------------  ------------- 
                                                                            
Net loss                                       $        (676) $      (1,113)
                                               =============  ============= 
                                                                            
Basic and diluted loss per share               $       (0.02) $       (0.03)
                                                                            
Weighted shares used in basic per share                                     
 calculation                                          33,004         33,019 
Weighted shares used in diluted per share                                   
 calculation                                          33,004         33,019 
                                                                            
Gross profit as a % of total revenues                     55%            55%
Research and development as a % of total                                    
 revenues                                                 15%            18%
Sales and marketing as a % of total revenues              24%            20%
General and administrative as a % of total                                  
 revenues                                                 14%            16%
                                                                            
  Condensed balance sheet data (in thousands):     9/30/12       12/31/11   
                                               -------------  ------------- 
                                                                            
  Cash and cash equivalents                    $      17,842  $      61,332 
  Accounts receivables                                17,132         14,646 
  Inventory                                           16,909         14,654 
  Total assets                                       236,777        278,894 
  Long term debt                                      19,000         42,000 
  Stockholders' equity                               186,668        185,386 
                                                                            
                                                                            
                                                                            
                             QUIDEL CORPORATION                             
                   CONSOLIDATED STATEMENTS OF OPERATIONS                    
              (In thousands, except per share data; unaudited)              
                                                                            
                                                     Nine months ended      
                                               September 30,  September 30, 
                                                    2012           2011     
                                               -------------  ------------- 
                                                                            
Total revenues                                 $     101,816  $     120,212 
                                                                            
Cost of sales (excludes amortization of                                     
 intangible assets from acquired businesses                                 
 and technology)                                      43,688         47,579 
Research and development                              20,433         19,559 
Sales and marketing                                   21,989         18,996 
General and administrative                            15,812         17,135 
Amortization of intangible assets from                                      
 acquired businesses and technology                    5,165          5,342 
                                               -------------  ------------- 
                                                                            
Total costs and expenses                             107,087        108,611 
                                               -------------  ------------- 
                                                                            
Operating (loss) income                               (5,271)        11,601 
                                                                            
Interest expense                                        (985)        (1,639)
Interest income                                           35            151 
Other expense                                            (27)             - 
                                               -------------  ------------- 
                                                                            
Total other expense                                     (977)        (1,488)
                                               -------------  ------------- 
                                                                            
(Loss) income before taxes                            (6,248)        10,113 
                                                                            
(Benefit) provision for income taxes                  (2,501)         3,438 
                                               -------------  ------------- 
                                                                            
Net (loss) income                              $      (3,747) $       6,675 
                                               =============  ============= 
                                                                            
Basic and diluted (loss) earnings per share    $       (0.11) $        0.20 
                                                                            
Weighted shares used in basic per share                                     
 calculation                                          33,036         32,833 
Weighted shares used in diluted per share                                   
 calculation                                          33,036         33,189 
                                                                            
Gross profit as a % of total revenues                     57%            60%
Research and development as a % of total                                    
 revenues                                                 20%            16%
Sales and marketing as a % of total revenues              22%            16%
General and administrative as a % of total                                  
 revenues                                                 16%            14%
                                                                            
                                                                            
                                                                            
                             QUIDEL CORPORATION                             
              Reconciliation of Non-GAAP Financial Information              
                   (In thousands, except per share data)                    
                                                                            
                                  Three months ended     Nine months ended  
                                     September 30,         September 30,    
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
                                      (unaudited)           (unaudited)     
                                                                            
Net (loss) income - GAAP         $    (676) $  (1,113) $  (3,747) $   6,675 
                                                                            
Add: Non-cash stock compensation                                            
 expense                             1,406      1,656      5,001      5,798 
  Amortization of intangibles        3,609      4,356     10,863      7,907 
  Income tax impact of non-cash                                             
   stock compensation expense                                               
   and amortization of                                                      
   intangibles                      (1,755)    (2,044)    (5,552)    (4,660)
                                 ---------  ---------  ---------  --------- 
                                                                            
Adjusted net income              $   2,584  $   2,855  $   6,565  $  15,720 
                                 =========  =========  =========  ========= 
                                                                            
                                                                            
Basic earnings (loss) per share:                                            
  Adjusted net earnings          $    0.08  $    0.09  $    0.20  $    0.48 
  Net (loss) earnings - GAAP     $   (0.02) $   (0.03) $   (0.11) $    0.20 
                                                                            
Diluted earnings (loss) per                                                 
 share:                                                                     
  Adjusted net earnings          $    0.08  $    0.08  $    0.19  $    0.47 
  Net (loss) earnings - GAAP     $   (0.02) $   (0.03) $   (0.11) $    0.20 
                                                                            
                                                                            

This press release contains forward-looking statements within the meaning of the federal securities laws that involve material risks, assumptions and uncertainties, including statements that we can meaningfully grow our business. Many possible events or factors could affect our future financial results and performance, such that our actual results and performance may differ materially from those that may be described or implied in the forward-looking statements. As such no forward-looking statement can be guaranteed. Differences in actual results and performance may arise as a result of a number of factors including, without limitation, seasonality, the timing of onset, length and severity of cold and flu seasons, the level of success in executing on our strategic initiatives, our reliance on sales of our influenza diagnostic tests, uncertainty surrounding the detection of novel influenza viruses involving human specimens, our ability to develop new products and technology, adverse changes in the competitive and economic conditions in domestic and international markets, our reliance on and actions of our major distributors, technological changes and uncertainty with research and technology development, including any future molecular-based technology, the medical reimbursement system currently in place and future changes to that system, manufacturing and production delays or difficulties, adverse regulatory actions or delays in product reviews by the U.S. Food and Drug Administration (the "FDA"), compliance with FDA and environmental regulations, our ability to meet unexpected increases in demand for our products, our ability to execute our growth strategy, including the integration of new companies or technologies, disruptions in the global capital and credit markets, our ability to hire key personnel, intellectual property, product liability, environmental or other litigation, potential required patent license fee payments not currently reflected in our costs, potential inadequacy of booked reserves and possible impairment of goodwill, and lower than anticipated acceptance, sales or market penetration of our new products. Forward-looking statements typically are identified by the use of terms such as "may," "will," "should," "might," "expect," "anticipate," "estimate," and similar words, although some forward-looking statements are expressed differently. The risks described under "Risk Factors" in reports and registration statements that we file with the SEC from time to time should be carefully considered. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date of this press release. We undertake no obligation to publicly release the results of any revision or update of the forward-looking statements, except as required by law.


Quidel Contact:
Quidel Corporation
Randy Steward
Chief Financial Officer
(858) 552-7931

Media and Investors Contact:
Quidel Corporation
Ruben Argueta
(858) 646-8023
Email Contact


Read at BioSpace.com


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