QIAGEN Reports Strong Fourth Quarter and Fiscal...
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* 35% Constant Currency and 13% Organic Revenue Growth in
2008
* 54% Growth in Adjusted Operating Income in 2008
* 47% Growth in Adjusted Net Income in 2008
Venlo, The Netherlands, February 9, 2009 - QIAGEN N.V. (Nasdaq: QGEN;
Frankfurt, Prime Standard: QIA) today announced preliminary unaudited
results of operations for the fourth quarter and the fiscal year
ended December 31, 2008.
The reported net sales exceeded, and adjusted earnings per share for
the fourth quarter and fiscal 2008 were on the high end of the
guidance provided by the Company on November 11, 2008.
Fourth Quarter 2008 Results
The Company reported that consolidated net sales for its fourth
quarter 2008 increased 13% to $237.2 million from $210.2 million for
the same quarter in 2007. Reported operating income for the quarter
increased 62% to $40.4 million from $25.0 million in the same quarter
of 2007, and net income for the quarter increased 65% to $24.7
million from $15.0 million in the same quarter of 2007. Diluted
earnings per share for the fourth quarter increased to $0.12 in 2008
(based on 202.0 million weighted average shares and share equivalents
outstanding) from $0.07 in 2007 (based on 205.2 million weighted
average shares and share equivalents outstanding).
On an adjusted basis, fourth quarter operating income increased 29%
to $66.6 million in 2008 from $51.8 million in 2007, and fourth
quarter 2008 adjusted net income increased 36% to $43.7 million from
$32.0 million in 2007. Adjusted diluted earnings per share increased
to $0.22 in the fourth quarter of 2008 from $0.16 in the fourth
quarter of 2007.
QIAGEN's fourth quarter and fiscal year 2007 results include the
results of operations of Digene Corporation and eGene, Inc., from
their dates of acquisition, July 2007, as well as certain charges
related to these acquisitions. QIAGEN's fourth quarter and fiscal
year 2008 results include the results of operations of Corbett Life
Science and the BioSystems business of Biotage AB from their
respective dates of acquisition, July 2008 and October 2008, and
Digene Corporation and eGene, Inc. for the entire period, as well as
certain charges related to these acquisitions.
Fiscal Year 2008 Results
QIAGEN's Fiscal 2008
in $ millions, except per share FY 2008 FY 2007 Growth
information
Net sales 893.0 649.8 37%
Operating income, adj. [1] 252.7 164.3 54%
Net income, adj.[1], [2] 163.3 111.5 47%
EPS, adj.[1], [2] ($) 0.80 0.63 27%
[1] excluding business integration and restructuring related charges
as well as amortization of acquired intangibles and equity-based
compensation.
[2] including a non-cash tax benefit of $0.02 per share in 2007 and
including a non-cash tax charge of $0.01 per share from revaluation
of acquired tax positions in 2008.
For the year ended December 31, 2008, net sales increased 37% to
$893.0 million compared to $649.8 million in 2007. Operating income
as reported for fiscal 2008 increased 75% to $145.7 million from
$83.1 million for 2007, and net income increased 78% to $89.0 million
in 2008 from $50.1 million in 2007, and diluted earnings per share
increased to $0.44 in 2008 (based on 204.3 million weighted average
shares and share equivalents outstanding) from $0.28 in 2007 (based
on 176.0 million weighted average shares and share equivalents
outstanding).
On an adjusted basis, operating income for the year ended December
31, 2008, increased 54% to $252.7 million from $164.3 million in
2007, and adjusted net income increased 47% to $163.3 million in 2008
from $111.5 million in 2007. Adjusted diluted earnings per share for
the year ended December 31, 2008, increased 27% to $0.80 per share,
from $0.63 per share in 2007.
QIAGEN has regularly reported adjusted results to give additional
insight into its financial performance as well as considered results
on a constant currencies basis. Adjusted results should be considered
in addition to the reported results prepared in accordance with
generally accepted accounting principles, but should not be
considered as a substitute. The Company believes certain items should
be excluded from adjusted results when they are either outside of our
ongoing core operations or can vary significantly from period to
period, which affects the comparability of results with the Company's
competitors and our own prior periods. Costs and charges excluded
from adjusted results include business integration and
restructuring-related costs as well as acquisition-related
amortization, and 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 $ millions unless Q4 2008 Q4 2007 FY 2008 FY 2007
indicated
Gross profit, 157.5 138.8 599.7 433.5
reported
Acquistion related 1.0 1.5 1.4 2.8
charges
Amortization of 13.2 11.3 48.7 23.7
acquired intangibles
SFAS 123R impact 0.2 0.3 1.0 0.4
Gross profit, 171.9 151.9 650.8 460.4
adjusted
Operating income, 40.4 25.0 145.7 83.1
reported
Acquistion related 1.0 1.5 1.4 2.8
charges (COS)
Business integration 4.4 8.1 30.9 14.9
and related costs
Purchased in-process 0.2 - 1.0 25.9
research &
development
Amortization of 17.0 14.7 63.1 31.3
acquired intangibles
(incl. COS)
Relocation and 0.5 0.1 1.2 0.5
restructuring charges
SFAS 123R impact 3.1 2.4 9.4 5.8
(incl. COS)
Operating income, 66.6 51.8 252.7 164.3
adjusted
Net income, reported 24.7 15.0 89.0 50.1
Acquistion related 0.8 0.9 1.1 1.8
charges (COS)
Business integration 3.3 5.2 20.5 9.6
and related costs
Purchased in-process 0.2 - 1.0 25.9
research &
development
Relocation and 0.3 - 0.8 0.4
restructuring charges
Acquisition triggered - - 2.5 -
impairment
Amortization of 12.2 9.4 41.9 20.0
acquired intangibles
SFAS 123R impact 2.2 1.5 6.5 3.7
Net income, adjusted 43.7 32.0 163.3 111.5
Weighted average 202,039,000 205,233,000 204,259,000 175,959,000
number of diluted
common shares
EPS, reported in $ 0.12 0.07 0.44 0.28
EPS, adjusted in $ 0.22 0.16 0.80 0.63
"2008 was a very successful year for QIAGEN in which we achieved
significant revenue growth, exceeding our expectations. We executed
on our strategy and significantly increased our technology and market
leadership in all our target customer segments", said Peer Schatz,
QIAGEN's Chief Executive Officer. "The launches of more than 80 new
products in 2008 contributed 5% to 2008 net sales growth and are a
testament to QIAGEN's focus on differentiating by innovation. New
products included innovative sample and assay technologies
* For research in the application areas including epigenetics, gene
expression, micro RNA, genotyping, RNAi;
* For use in all customer segments, such as academia,
pharmaceutical R&D, applied testing and molecular diagnostics;
and
* In the form of consumables and related instrumentation, such as
the QIAsymphony SP - the first module of a novel modular
processing platform integrating entire workflows in molecular
processing - a new platform launch that we are very pleased with.
Our full pipeline of new products and a strong strategic position
build a solid basis for our success in 2009 and beyond."
"We expect a number of exciting new market introductions in 2009.
These include a further expansion of our sample and assay technology
portfolio for research in applied testing and molecular diagnostics
with the clear goal of adding even more regulated products to our
portfolio." Mr. Schatz added. "Our pipeline of automated solutions
for our sample and assay technologies is exceptionally strong. In
January we already launched or announced several new products:
* EZ1 Advanced XL, a fully automated sample technology system which
can process and purify target analytes from up to 14 samples
running on pre-programmed protocols and pre-filled cartridges;
* QIAgility, a highly versatile assay set-up unit for assay
technologies such as PCR;
* Rotor-Gene Q, QIAGEN's new and technology leading real-time PCR
cycler; and
* The next module of QIAsymphony, QIAsymphony AS, a fully
integrated assay set-up unit for the QIAsymphony platform which
takes this platform one significant step closer towards being a
fully integrated, random access and continuous load molecular
testing solution."
"Our acquisition strategy remains focused, consistent and
value-creating, providing complementary technologies, new commercial
capabilities and/or geographic reach. For example, we further
strengthened our market and technology leadership by adding assay
technology set-up instrumentation and real-time PCR assay analysis
technology to QIAGEN's instrumentation platform through the
acquisition of Corbett in July 2008. With the acquisition of the
BioSystems business from Biotage in October 2008, we added the
Pyrosequencing technology, a fundamental assay technology for
high-resolution sequence detection and quantification of gene
variations which we believe will play a very important role in
epigenetics as well as multiplex genetic and pathogen detection. Our
molecular 'sample to result' solutions for customers in molecular
diagnostics, applied testing, pharma and academic research, now for
the first time span from sample to result across many different forms
of assay detection technologies - from qualitative/endpoint PCR,
multiplex technologies and capillary electrophoresis to quantitative
and high resolution, sequence-based analysis and cover a broad range
of throughput needs."
"2008 was a very successful year for QIAGEN - we achieved our strong
financial results while experiencing significant strategic momentum.
I would like to thank our employees around the world for their
contributions to our performance and their strong commitment to build
the basis for a long-term success for QIAGEN."
"QIAGEN experienced an exciting fourth quarter and fiscal year 2008.
Reported revenues for the fourth quarter and for the fiscal year
exceeded our expectations. We experienced a strong adjusted operating
margin increase to 28% from 25% in fiscal year 2007 which corresponds
to a growth rate of 54% year over year reflecting achievements of
cost synergies following the acquisition of Digene," said Roland
Sackers, QIAGEN's Chief Financial Officer.
"Revenue growth for fiscal year 2008 was 37% and was fueled by a
strong organic growth of 13% and a positive contribution from
acquisitions of 22% at constant currencies," Roland Sackers
continued. "Our sample and assay portfolio grew 36% (34% at constant
exchange rates) driven by strong growth of sales of our products to
customers in molecular diagnostics. QIAGEN's instrumentation business
recorded a very strong growth rate of 51% (52% at constant exchange
rates) mainly based on the new instruments (QIAsymphonySP and
QIAxcel) as well as a strong demand for the Rotor-Gene real-time PCR
cycler and the CAS instrument following the Corbett acquisition. Net
sales in the Americas in fiscal year 2008 represented 50% of our
overall business and recorded a growth rate of 49% while European
sales, which represent 37% of our revenues, showed a growth rate of
21% (17% at constant exchange rates). Net sales in Asia remained
strong, showing a growth rate of 24% (16% at constant exchange
rates)."
Fiscal Year 2009 Guidance
Based on foreign currency exchange rates as of January 31, 2009,
QIAGEN expects revenues between $920 and $970 million in 2009 and
adjusted diluted earnings per share between $0.88 and $0.94. Under
constant exchange rates consideration, revenue expectations for 2009
would be between $990 and $1,040 million with a growth rate between
11% and 16% when compared to 2008 and expectations for adjusted
diluted earnings per share would be between $0.92 and $0.98
respectively.
Detailed information on the Company's business, financial performance
and expectations will be presented in the Company's conference call
on February 10, 2009 at 9:30am ET. The corresponding presentation
slides will be available for download on the Company's website at
www.qiagen.com/goto/ConferenceCall. A webcast of the conference call
will be available on the same website at
www.qiagen.com/goto/ConferenceCall.
QIAGEN - Sample and Assay Technologies Highlights:
* QIAGEN acquired Corbett Life Science Pty. Ltd., best known for the
world's first rotary real-time PCR cycler system - the
Rotor-Gene(TM) - a system used to detect and measure real-time
polymerase chain reaction (PCR) reactions. The Corbett Rotor-Gene
real-time PCR cycler is an excellent complement to QIAGEN's
portfolio of current and future molecular testing solutions,
including its modular processing platform QIAsymphony.
* QIAGEN acquired the BioSystems business from Biotage AB. The
BioSystems unit of Biotage is best known for having pioneered
Pyrosequencing®, which has become a fundamental technology in
next-generation sequencing. In addition, in its widely used
standard format (PyroMark systems and consumables) this technology
provides the opportunity to read DNA-sequences up to 100 base pairs
in real time, high-speed and with very low costs. The PyroMark
solutions offer significant value for applications including
Epigenetics in research and molecular diagnostics as well as in
Multiplex analyses in genetic and pathogen detection.
* QIAGEN introduced the first molecular diagnostic test based on
Pyrosequencing for the detection of mutations in the K-ras gene
which is associated with the development of colon cancer. QIAGEN
expects to launch further versions of this test in Europe
(CE-marked) and in the U.S. very shortly.
* QIAGEN received additional 510(k) clearance from the U.S. Food and
Drug Administration (FDA) for PreAnalytiX PAXgene(TM) Blood RNA
System for use on QIAGENs QIAcube instrument. The PAXgene Blood RNA
system, cleared by the FDA for manual use already in May 2005, is
the first of its class for the collection, storage, and transport
of blood and stabilization of intracellular RNA in a closed tube
and subsequent isolation and purification of intracellular RNA from
whole blood for Reverse Transcription-Polymerase Chain Reaction
(RT-PCR) used in clinical and molecular diagnostic testing.
* The European Union launched a new research project led by QIAGEN
targeting to expand the potential and utility of in-vitro
diagnostics through the creation of new standards for the
collection, handling and processing of blood, tissue, tumor and
other sample materials. The SPIDIA project ("Standardisation and
improvement of generic Pre-analytical tools and procedures for
In-vitro DIAgnostics"), consisting of 16 companies and research
institutions from 11 countries, is scheduled to run for four years
and has a total budget of over 13 million Euros.
* In November 2008 the Mexican Public Health Agency (Secretaria de
Salud or SSA) announced the launch of the first phase of a program
that will offer testing for human papillomavirus (HPV). The cost of
the testing will be covered by the agency. In the first phase of
the screening program, more than 200,000 women were being offered
the papillomavirus test along with the traditional Pap smear. In
2009, the pilot program will be expanded to include another 600,000
women in the 20 states with the highest death rate from cervical
cancer. It is estimated that 6 million women a year will be
eligible for HPV testing through the Mexican public health system
once the screening program is national.
QIAGEN's Fiscal 2008 at
Constant Currencies
As percentage FY 2008 FY 2008 FY 2007 Growth Rate
of net sales, Constant Constant
unless indicated Reported Currency Reported Reported Currency
Consumables 88% 87% 89% 36% 34%
Instruments 11% 12% 10% 51% 52%
Others 1% 1% 1% -20% -22%
Total revenues 100% 100% 100% 37% 35%
Gross margin 67% 67% 67% 38% 35%
Gross margin, 73% 72% 71% 41% 38%
adj.[1]
Operating income 16% 16% 13% 75% 71%
margin
Operating income 28% 28% 25% 54% 52%
margin, adj. [1]
Net income margin 10% 10% 8% 78% 71%
Net income 18% 18% 17% 47% 43%
margin, adj. [1],
[2]
EPS in US$ per 0.44 0.42 0.28 57% 50%
share
EPS in US$ per 0.80 0.78 0.63 27% 24%
share, adj. [1],
[2]
[1] excluding business integration and restructuring related charges
as well as
amortization of acquired intangibles and equity-based compensation.
[2] including a non-cash tax benefit of $0.02 per share in 2007 and
including a non-cash tax charge of $0.01 per share from revaluation
of acquired tax positions in 2008.
About QIAGEN:
QIAGEN N.V., a Netherlands holding company, is the
leading global provider of sample and assay technologies. Sample
technologies are used to isolate and process DNA, RNA and proteins
from biological samples such as blood or tissue. Assay technologies
are used to make such isolated biomolecules visible. QIAGEN has
developed and markets more than 500 sample and assay products as well
as automated solutions for such consumables. The company provides its
products to molecular diagnostics laboratories, academic researchers,
pharmaceutical and biotechnology companies, and applied
testing customers for purposes such as forensics, animal or food
testing and pharmaceutical process control. QIAGEN's assay
technologies include one of the broadest panels of molecular
diagnostic tests available worldwide. This panel includes the only
FDA-approved test for human papillomavirus (HPV), the primary cause
of cervical cancer. QIAGEN employs more than 3,000 people in over 30
locations worldwide. Further information about QIAGEN can be found at
www.qiagen.com.
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 general economic conditions, 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
(in thousands, except per share data) ended December 31,
2008 2007
Net sales $ 237,182 $ 210,224
Cost of sales 65,518 58,572
Cost of sales - acquisition related 1,047 1,496
Cost of sales - acquisition related 13,166 11,359
intangible amortization
Gross profit 157,451 138,797
Operating expenses:
Research and development 28,049 22,844
Sales and marketing 59,662 56,230
General and administrative 20,497 23,172
Purchased in-process research and 155 -
development
Business integration and related costs 4,310 8,126
Acquisition related intangible amortization 3,884 3,354
Relocation and restructuring costs 458 60
Total operating expenses 117,015 113,786
Income from operations 40,436 25,011
Other income (expense):
Interest income 2,121 3,669
Interest (expense) (8,695) (11,099)
Other income, net 2,311 2,574
Total other (expense) (4,263) (4,856)
Income before provision for income taxes 36,173 20,155
and minority interest
Provision for income taxes 11,490 5,099
Minority interest loss - 56
Net income $ 24,683 $ 15,000
Weighted average number of diluted common 202,039 205,233
shares
Diluted net income per common share $ 0.12 $ 0.07
Diluted net income per common share
excluding acquisition, business integration
and restructuring
related charges as well as amortization of
acquired
intangibles and equity-based compensation $ 0.22 $ 0.16
(SFAS 123R)
QIAGEN N.V.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Twelve months
(in thousands, except per share data) ended December 31,
2008 2007
Net sales $ 892,975 $ 649,774
Cost of sales 243,124 189,773
Cost of sales - acquisition related 1,443 2,839
Cost of sales - acquisition related intangible 48,718 23,615
amortization
Gross profit 599,690 433,547
Operating expenses:
Research and development 97,331 64,935
Sales and marketing 227,408 164,690
General and administrative 81,841 71,932
Purchased in-process research and development 985 25,900
Business integration and related costs 30,931 14,708
Acquisition related intangible amortization 14,368 7,711
Relocation and restructuring costs 1,164 538
Total operating expenses 454,028 350,414
Income from operations 145,662 83,133
Other income (expense):
Interest income 9,511 19,509
Interest (expense) (37,527) (31,455)
Other income, net 1,640 4,539
Total other (expense) (26,376) (7,407)
Income before provision for income taxes and 119,286 75,726
minority interest
Provision for income taxes 29,762 25,555
Minority interest loss 491 49
Net income $ 89,033 $ 50,122
Weighted average number of diluted common 204,259 175,959
shares
Diluted net income per common share $ 0.44 $ 0.28
Diluted net income per common share
excluding acquisition, business integration and
restructuring
related charges as well as amortization of
acquired
intangibles and equity-based compensation (SFAS $ 0.80 $ 0.63
123R)
QIAGEN N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value) December 31, December 31,
2008 2007
Assets (unaudited)
Current Assets:
Cash and cash equivalents $ 333,313 $ 347,320
Marketable securities - 2,313
Accounts receivable, net 158,440 141,846
Income taxes receivable 6,421 10,696
Inventories 108,563 88,346
Deferred income taxes 31,258 23,732
Prepaid expenses and other 61,424 33,693
Total current assets 699,419 647,946
Long-Term Assets:
Property, plant and equipment, net 289,672 283,491
Goodwill 1,152,447 1,107,882
Intangible assets, net 640,309 639,107
Deferred income taxes 73,766 72,128
Other assets 25,916 24,620
Total long-term assets 2,182,110 2,127,228
Total assets $ 2,881,529 $ 2,775,174
Liabilities and Shareholders' Equity
Current Liabilities:
Current portion of long-term debt $ 25,000 $ -
Current portion of capital lease 2,984 2,769
obligations
Accounts payable 48,836 40,379
Accrued and other liabilities 163,513 104,224
Income taxes payable 6,871 13,456
Deferred income taxes 7,754 4,903
Total current liabilities 254,958 165,731
Long-Term Liabilities:
Long-term debt, net of current portion 920,000 950,000
Capital lease obligations, net of current 29,718 33,017
portion
Deferred income taxes 211,161 225,893
Other 6,797 8,405
Total long-term liabilities 1,167,676 1,217,315
Minority interest in consolidated - 553
subsidiaries
Shareholders' Equity:
Common shares, EUR .01 par value:
Authorized--410,000 shares
Issued and outstanding--197,839 shares
in 2008 and 195,335 shares in 2007 2,212 2,175
Additional paid-in-capital 963,716 925,597
Retained earnings 477,812 388,779
Accumulated other comprehensive income 15,155 75,024
Total shareholders' equity 1,458,895 1,391,575
Total liabilities and shareholders' equity $ 2,881,529 $ 2,775,174
Contacts:
Roland Sackers Dr. Solveigh Mähler
Chief Financial Officer Director Investor Relations
QIAGEN N.V. QIAGEN N.V.
E-mail: roland.sackers@qiagen.com +49 2103 29 11710
E-mail:
Albert F. Fleury solveigh.maehler@qiagen.com
Director Corporate Finance and Investor
Relations North America Dr. Thomas Theuringer
QIAGEN N.V. Associate Director Public
+1 301 944 7028 Relations
E-mail: albert.fleury@qiagen.com QIAGEN GmbH
+49 2103 29 11826
E-mail:
thomas.theuringer@qiagen.com
--- End of Message ---
Qiagen N.V.
Spoorstraat 50 KJ Venlo Netherlands
WKN: 901626; ISIN:
NL0000240000; Index: HDAX, MIDCAP, Prime All Share, TECH All Share,
TecDAX;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in
Börse Berlin,
Freiverkehr in Börse Düsseldorf, Freiverkehr in Hanseatische
Wertpapierbörse zu Hamburg,
Freiverkehr in Niedersächsische Börse zu Hannover, Freiverkehr in
Bayerische Börse München,
Freiverkehr in Börse Stuttgart;