Information  X 
Enter a valid email address

Qiagen N.V. (0H1Z)

  Print      Mail a friend       Annual reports

Wednesday 27 April, 2011

Qiagen N.V.

QIAGEN Reports First Quarter 2011 Results




Qiagen N.V. /
QIAGEN Reports First Quarter 2011 Results
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement. 

  * Net sales of $264.3 million (0%, -2% CER) reflect anticipated soft start to
    2011, disruptions in Japan and other markets reduce growth by ~2 percentage
    points
  * Adjusted EPS rises to $0.21 (+5%) on productivity initiatives that support
    investments to drive innovation and growth; free cash flow more than doubles
    to $29.0 million
  * New pharma co-development agreements reached, expanding Personalized
    Healthcare beyond oncology; U.S. submission of KRAS cancer biomarker
    advances
  * Global rollout of QIAsymphony RGQ automated platform progressing well
  * Proposed acquisition of Cellestis to provide novel "pre-molecular" disease
    detection technology that highly complements DNA- and RNA-based molecular
    diagnostics
  * QIAGEN reaffirms expectations: Adjusted earnings expected to grow faster
    than net sales in 2011, focus on expansion to further accelerate growth in
    2012


Venlo,  The Netherlands, April  27, 2011 - QIAGEN N.V.  (NASDAQ: QGEN; Frankfurt
Prime Standard: QIA) today announced results of operations for the first quarter
of  2011. Net sales  of $264.3  million were  largely unchanged  compared to the
first  quarter of 2010 (-2% at constant exchange  rates, or CER), while adjusted
earnings  per share rose  5% to $0.21 ($0.20  CER) and free  cash flow more than
doubled to $29.0 million from $12.3 million in the first quarter of 2010.

Results  in the 2011 first quarter were  unexpectedly affected by disruptions in
Japan,  Australia/New Zealand  and northern  Africa, which  reduced net sales by
approximately two percentage points.

"We  remain on  track to  deliver on  our full-year  growth targets  despite the
expected softness in the first quarter, which was exacerbated by several factors
including  the  crisis  in  Japan.  As  we  position  ourselves for sequentially
increasing  growth, we  are making  broad progress  to expand  our business. The
initiatives  we have  put in  place are  set to  drive the improving performance
during  the  course  of  2011 and  position  us  to further accelerate growth in
2012," said Peer Schatz, Chief Executive Officer of QIAGEN N.V.

"Several  milestones in the first quarter  of 2011 show QIAGEN is executing well
on  a  strategic  plan  to  expand  the molecular content available on automated
platforms.  The  rollout  of  QIAsymphony  RGQ  continues  to progress well, and
customer  feedback  is  validating  the  goal  of  this  novel platform to drive
dissemination of molecular diagnostics. Our recent proposal to acquire Cellestis
is expected to add a novel 'pre-molecular' technology and commercial assays that
can  be migrated to our automated platforms  and highly complements our DNA- and
RNA-based  molecular diagnostics  portfolio. In  addition, we  are expanding our
portfolio   of   companion   diagnostic   partnerships  in  oncology  and  other
indications.  One  of  the  new  co-development  agreements  signed in the first
quarter  with a major  pharmaceutical company added  an additional, new and very
large therapeutic area. The U.S. regulatory submission of the KRAS biomarker for
use  as a  companion diagnostic  is advancing  toward completion. QIAGEN is well
positioned to achieve the goals set for 2011 and deliver growth in the future at
a faster pace."

First Quarter 2011 Results

+------------------------------------------------------------------------------+
|in $ millions, except per share                                               |
|information                               Q1 2011 Q1 2010        Change       |
+------------------------------------------------------------------------------+
|                                                                              |
|                                                                              |
|Net sales                                   264.3   264.4          0%         |
|                                                                              |
|Operating income, adjusted                   70.5    73.6         -4%         |
|                                                                              |
|Net income, adjusted                         49.5    49.3          0%         |
|                                                                              |
|EPS, adjusted ($)                            0.21    0.20                     |
|                                                                              |
|                                                                              |
+------------------------------------------------------------------------------+


 For information on the adjusted figures, please refer to the
 reconciliation table

 accompanying this release.



Net sales were largely unchanged at $264.3 million in the first quarter of 2011
compared  with $264.4 million in the first quarter of 2010, but declined 2% CER.
Operating  income of $38.4 million declined  14% from $44.7 million in the 2010
quarter.  Net income  fell 15% to  $28.0 million  in the 2011 quarter from $33.0
million  in the  year-ago quarter,  while diluted  earnings per share were $0.12
(based on 240.4 million diluted shares) in the 2011 quarter compared to $0.14 in
the same 2010 quarter (based on 241.9 million diluted shares).

Adjusted  operating income  in the  first quarter  of 2011 declined  4% to $70.5
million  from $73.6 million in the same 2010 quarter, with an adjusted operating
income  margin of  27% of net  sales compared  to 28% in  the same 2010 quarter.
Adjusted  net income was largely unchanged  at $49.5 million in the 2011 quarter
compared to $49.3 million in the same quarter of 2010. Adjusted diluted earnings
per  share rose to $0.21 in the 2011 quarter  from $0.20 in the first quarter of
2010.

Reconciliations  of reported results in  accordance with U.S. generally accepted
accounting  principles (GAAP)  to adjusted  results are  included in  the tables
accompanying this release.

"Our  first-quarter results are  not indicative of  the full-year performance we
are  targeting. We  expect to  deliver substantially  higher growth rates as the
year  progresses, with the  strongest results anticipated  in the second half of
2011 as  we expect  to benefit  from the  rollout of QIAsymphony RGQ, geographic
expansion and predictions for improving market conditions," said Roland Sackers,
Chief  Financial Officer  of QIAGEN  N.V. "Adjusted  earnings during 2011 should
grow  at a faster pace than net sales due to operational excellence initiatives.
Our strong financial position also provides resources to fund the acquisition of
Cellestis  while maintaining strategic flexibility  to strengthen our businesses
through sustained R&D investments and additional targeted acquisitions."

Business Review

Performance  during the first quarter of  2011 was soft across the four customer
classes as net sales were largely unchanged, but declined 2% CER compared to the
year-ago  period. The first quarter of 2010 had benefited from the contributions
of  exceptionally strong  instrument sales  and solid  demand for  HPV screening
tests  in the U.S., which then declined sharply during the rest of 2010 due to a
reduction  in patient visits to physicians,  linked to weak economic conditions.
Additionally,  product deliveries in the first quarter of 2011 were disrupted by
natural  disasters in  Japan and  Australia/New Zealand  and political unrest in
Egypt,  where QIAGEN is  a major supplier  to the hepatitis  C testing programs,
reducing net sales by approximately two percentage points.

Among product categories, consumables and related revenues provided 87% of sales
in  the  first  quarter  of  2011, declining  1% CER  from the same 2010 period.
Instrumentation   contributed   13% of   sales   and  fell  9% CER  compared  to
exceptionally strong year-ago results, when net sales rose 37% CER.

Among  the regions, the Americas  (47% of sales) delivered  1% CER growth in net
sales compared to the first quarter of 2010, while Europe / Middle East / Africa
(35%  of sales) declined 1% CER and  Asia-Pacific/Japan (18% of sales) fell 10%
CER.

Molecular  Diagnostics (44% of net sales) declined 2% CER from the first quarter
of  2010 as Profiling  and Prevention  offset gains  in Personalized Healthcare,
which  grew  on  expansion  of  companion  diagnostic  sales  in  Europe and co-
development   projects  with  pharmaceutical  companies.  Profiling  (infectious
disease testing) was adversely affected by sales disruptions in Japan and Egypt.
Prevention  was hampered by soft sales of  HPV tests in the U.S. However, trends
are   becoming  more  positive  in  the  U.S.,  providing  further  support  for
expectations  of improving  sales in  the coming  quarters. Changes of trends in
patient  visits to physicians are typically reflected in sales with a delay of a
few months.

Applied  Testing (6% of net sales) faced a challenging year-over-year comparison
as  net sales  in the  first quarter  of 2011 fell  13% CER from  the same 2010
period,   which   included   exceptionally   strong  sales  of  instruments  and
overshadowed  growth in  consumables. Long-term  trends in  this customer class,
which  can have volatile quarterly results,  are supported by expansion in human
identification, veterinary testing and food safety.

Pharma (21% of net sales) benefited from sustained demand for advanced molecular
technologies  supporting R&D  initiatives for  new medicines, particularly gene-
based  drug development activities. Net sales  in the first quarter of 2011 rose
2% CER compared to the same period in 2010.

Academia (29% of net sales) saw cautious purchasing patterns for consumable kits
and  instruments in some  key markets during  the first quarter  of 2011, as net
sales declined 2% CER compared to the same period in 2010.

Expanding in 2011 to Further Accelerate Growth in 2012

QIAGEN  continues  to  make  progress  on  strategic initiatives to leverage its
global  leadership in Sample & Assay Technologies and strengthen its position in
all customer classes. A key focus is expanding the offering of molecular content
for  use on various automated platforms, driven  by both internal R&D efforts as
well as targeted acquisitions.

Important  to this strategy  is the global  rollout of QIAsymphony  RGQ, a next-
generation  automated modular  testing platform  that addresses customer demands
for  a versatile  mid-throughput system.  Since the  launch of the first modular
unit (QIAsymphony SP) in 2008, more than 400 systems have been placed around the
world.  The late 2010 launch  of QIAsymphony RGQ,  which incorporates the Rotor-
Gene  Q  (RGQ)  real-time  PCR  detection  platform,  is  expected to accelerate
placements,  particularly in Molecular Diagnostics. QIAsymphony RGQ is the first
modular  system that automates  entire laboratory workflows  from initial sample
preparation  to final result,  and allows customers  to run commercial assays as
well as to develop and conduct their own tests.

Customer  response has been very positive to QIAsymphony RGQ, with an increasing
number  of system placements achieved in  the first quarter of 2011 for customer
evaluation  and validation. QIAGEN expects  to significantly increase the number
of  system placements during 2011 and 2012, which will help to accelerate growth
in the coming years.

QIAGEN  also  has  made  progress  on  a  series of initiatives to add molecular
content  - particularly in Molecular Diagnostics - to QIAsymphony RGQ as well as
other  automated platforms, which include the next-generation QIAensemble system
in  development and point  of need testing  platforms. More than 20 new products
were   launched  in  the  first  quarter  of  2011, while  nearly  40 regulatory
clearances or approvals were received from agencies around the world.

In  an important strategic move in early April, QIAGEN announced an agreement to
acquire  Cellestis  Limited  (CST:AU)  for  approximately  A$341 million (US$355
million)  in cash, providing access to the QuantiFERON® technology that offers a
new  dimension in disease detection not currently possible with other diagnostic
methods.  Cellestis has commercialized this  technology, which tests whole blood
samples  for  the  presence  of  systemically  amplified molecular analytes that
provide  information  from  the  immune  system's  memory,  in  tests for latent
tuberculosis  (TB)  and  the  life-threatening  cytomegalovirus (CMV). Following
completion  of the transaction,  which is expected  in mid-2011, QIAGEN plans to
migrate  QuantiFERON® products  onto its  automated platforms  and develop tests
that  complement QIAGEN's  DNA- and  RNA-based molecular  diagnostics portfolio.
QIAGEN  is considering  other targeted  acquisitions in  line with  its focused,
consistent and value-creating strategy.

In  Personalized Healthcare, QIAGEN  is actively expanding  its portfolio of co-
development   projects   with   leading   pharmaceutical  and  biopharmaceutical
companies.  Among the new projects is an  agreement reached in the first quarter
of  2011 with an undisclosed  major pharmaceutical company  that added a new and
very   large  therapeutic  area  for  companion  diagnostics.  Negotiations  are
progressing with other companies on co-development projects, both in oncology as
well  as in  areas including  central nervous  system, cardiovascular  and other
diseases.  QIAGEN is  positioned as  a global  leader in Personalized Healthcare
with  more than  15 projects under  way to  develop companion diagnostics. These
tests  provide information to guide  treatment decisions, particularly in cancer
patients.  In the  U.S., the  modular submission  of the therascreen KRAS assay,
which determines the gene mutation status in patients with metastatic colorectal
cancer, remains on track for completion in the first half of 2011.

In Prevention, momentum is building toward the adoption of molecular diagnostics
for use in screening women at risk of the human papillomavirus (HPV), a cause of
cervical cancer. In the first quarter of 2011, progress was made toward adoption
of HPV testing in almost 10 countries where major pilot projects are expected to
begin  in  2011. In  the  U.S.,  QIAGEN  continues to demonstrate success in its
market conversion initiatives, which are being targeted at integrated healthcare
networks  and large physician groups. QIAGEN continues to expect higher sales of
HPV  tests in 2011 based  on further conversion  of the U.S.  market, while also
taking  into  account  factors  driven  by  the anticipated entry of competitors
during the second half of 2011.

2011 outlook
(Barring unforeseen events)

QIAGEN  reaffirms  its  expectations  to  deliver  adjusted earnings growth at a
faster  pace than net  sales. Full-year net  sales in 2011 are  expected to rise
approximately   5-7% CER,   reflecting   organic   growth   and   no  meaningful
contributions  from acquisitions completed in  2010. Adjusted earnings per share
are  expected  to  grow  approximately  7-13% CER.  Results are expected to move
toward  substantially  higher  growth  rates  during  the  course of 2011. These
expectations  do not take into account the acquisition of Cellestis (expected to
be  completed  in  mid-2011) or  other  potential  acquisitions  that  could  be
completed  during the year,  and an improving  economic environment, which could
provide  additional growth  contributions. These  expectations also  do not take
into  account  any  potential  supply  disruptions  in Japan and northern Africa
during the rest of 2011.

Conference Call and Webcast Details

Information  on QIAGEN's  business and  financial performance  will be presented
during  a conference call  on Thursday, April  28, 2011, at 9:30 ET / 15:30 CET.
The  corresponding presentation  slides will  be available  for download shortly
before  the conference call at www.qiagen.com/goto/ConferenceCall, and a webcast
is  available at  this website.  A replay  will also  be made  available on this
website.

Use of Adjusted Results

QIAGEN has regularly reported adjusted results, as well as results considered on
a  constant exchange rate  basis, to give  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  as a  substitute. QIAGEN  believes certain items
should  be excluded from adjusted  results when they are  outside of its ongoing
core  operations,  vary  significantly  from  period  to  period,  or affect the
comparability  of  results  with  the  company's  competitors  and its own prior
periods. Reconciliations of reported results to adjusted results are included in
the  tables accompanying this  release. QIAGEN is  also reporting free cash flow
results  which are calculated as net  cash provided by operating activities less
capital expenditures for the purchase of property, plant and equipment.



About QIAGEN

QIAGEN  N.V., a Netherlands  holding company, is  the leading global provider of
Sample & 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 these isolated  biomolecules visible. QIAGEN has
developed  and  markets  more  than  500 sample  and  assay  products as well as
automated  solutions  for  such  consumables.  QIAGEN  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 first FDA-approved test for
human papillomavirus (HPV), the primary cause of cervical cancer. QIAGEN employs
nearly  3,600 people in  over 30 locations  worldwide. Further information about
QIAGEN can be found at 

http://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,  including  without  limitation  its  expected  operating  results, are
forward-looking,   such   statements  are  based  on  current  expectations  and
assumptions 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,  regulatory processes and dependence on logistics), variability of
operating  results  and  allocations  between  business segments, the commercial
development  of  markets  for  our  products  in  applied  testing, personalized
healthcare,  clinical  research,  proteomics,  women's  health/HPV  testing  and
nucleic acid-based molecular diagnostics; 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  products;  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 and protect our
products  from competitors' products; market acceptance of QIAGEN's new products
and  the  integration  of  acquired  technologies  and  businesses.  For further
information,  please refer to  the discussions in  reports that QIAGEN has filed
with, or furnished to, the U.S. Securities and Exchange Commission (SEC).

                                      ###

Contacts:

Investor Relations                      Public Relations

Dr. Solveigh Mähler   +49 2103 29 11710 Dr. Thomas Theuringer +49 2103 29 11826

Albert F. Fleury      +1 301 944 7028

e-mail: [email protected]                   e-mail: [email protected]




                              QIAGEN N.V.

              CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                              (unaudited)





                                                         Three months

(in $ thousands, except per share data)                ended March 31,
                                                     -------------------


                                                       2011       2010
                                                     --------- ---------
Net sales                                             264,265    264,364

  Cost of sales                                        92,117     91,152
                                                     --------- ---------
Gross profit                                          172,148    173,212
                                                     --------- ---------


Operating expenses:

  Research and development                             32,667     31,597

  Sales and marketing                                  68,414     64,436

  General and administrative, integration and other    26,397     26,340

  Acquisition-related intangible amortization           6,225      6,158
                                                     --------- ---------
Total operating expenses                              133,703    128,531
                                                     --------- ---------


Income from operations                                 38,445     44,681
                                                     --------- ---------


Other income (expense):

  Interest income                                       1,271        689

  Interest expense                                    (6,307)    (6,254)

  Other income, net                                     1,878      2,235
                                                     --------- ---------
Total other expense                                   (3,158)    (3,330)
                                                     --------- ---------


Income before provision for income taxes               35,287     41,351

Provision for income taxes                              7,306      8,337
                                                     --------- ---------
Net income                                             27,981     33,014



  Weighted average number of diluted common shares    240,382    241,924



  Diluted net income per common share                  $ 0.12     $ 0.14



  Diluted net income per common share, adjusted        $ 0.21     $ 0.20




                                QIAGEN N.V.

                   CONDENSED CONSOLIDATED BALANCE SHEETS







(in $ thousands, except par value)                March 31,    December 31,

                                                    2011           2010
                                                ------------- -------------
Assets                                           (unaudited)



Current Assets:

  Cash and cash equivalents                          776,581        828,407

  Short-term investments                             162,346        106,077

  Accounts receivable, net                           202,215        197,418

  Income taxes receivable                             12,647         10,920

  Inventories, net                                   132,752        126,633

  Prepaid expenses and other                          76,624         64,402

  Deferred income taxes                               25,094         30,731
                                                ------------- -------------
        Total current assets                       1,388,259      1,364,588
                                                ------------- -------------


Long-Term Assets:

  Property, plant and equipment, net                 369,955        345,664

  Goodwill                                         1,364,183      1,352,281

  Intangible assets, net                             752,541        753,327

  Deferred income taxes                               31,045         37,182

  Other assets                                        52,072         60,953
                                                ------------- -------------
        Total long-term assets                     2,569,796      2,549,407
                                                ------------- -------------

                                                ------------- -------------
    Total assets                                   3,958,055      3,913,995



Liabilities and Shareholders' Equity



Current Liabilities:

  Accounts payable                                    51,976         47,803

  Accrued and other liabilities                      197,951        209,054

  Income taxes payable                                17,821         25,211

  Current portion of long-term debt                   76,332         75,835

  Deferred income taxes                               30,809         30,504
                                                ------------- -------------
        Total current liabilities                    374,889        388,407
                                                ------------- -------------


Long-Term Liabilities:

  Long-term debt, net of current portion             796,865        797,171

  Deferred income taxes                              191,160        200,667

  Other liabilities                                   58,846         51,397
                                                ------------- -------------
        Total long-term liabilities                1,046,871      1,049,235
                                                ------------- -------------


Shareholders' Equity:

  Common shares, EUR .01 par value:

    Authorized - 410,000 shares

    Issued and outstanding - 233,683 shares

        in 2011 and 233,115 shares in 2010             2,732          2,724

    Additional paid-in capital                     1,659,073      1,648,985

    Retained earnings                                787,871        759,890

    Accumulated other comprehensive income            86,619         64,754
                                                ------------- -------------
        Total shareholders' equity                 2,536,295      2,476,353
                                                ------------- -------------

                                                ------------- -------------
    Total liabilities and shareholders' equity     3,958,055      3,913,995




                                  QIAGEN N.V.

                 RECONCILIATION OF REPORTED TO ADJUSTED FIGURES

                                  (unaudited)





                       Three months ended March 31, 2011

                        (in $ millions, except EPS data)



                    Net    Gross    Operating  Pre-tax  Income    Net   Diluted
                   Sales   Profit    Income    Income    Tax    Income    EPS*
                 ---------------------------------------------------------------
Reported results    264.3    172.1        38.4    35.3    (7.3)    28.0   $ 0.12

Adjustments:

  Business              -      0.1         3.2     3.3    (1.1)     2.2     0.01
  integration,
  acquisition
  related and
  restructuring
  costs

  Purchased             -     16.8        23.0    23.0    (7.8)    15.2     0.06
  intangibles
  amortization

  Share-based           -      0.3         4.0     4.0    (0.8)     3.2     0.01
  compensation

  Other non-            -      1.6         1.9     1.3    (0.4)     0.9     0.01
  recurring
  income and
  expense
                 ---------------------------------------------------------------
  Total                 -     18.8        32.1    31.6   (10.1)    21.5     0.09
  adjustments
                 ---------------------------------------------------------------
Adjusted results    264.3    190.9        70.5    66.9   (17.4)    49.5   $ 0.21



* Using 240.4 M
  diluted shares





                       Three months ended March 31, 2010

                        (in $ millions, except EPS data)



                    Net    Gross    Operating  Pre-tax  Income    Net   Diluted
                   Sales   Profit    Income    Income    Tax    Income    EPS*
                 ---------------------------------------------------------------
Reported results    264.4    173.2        44.7    41.3    (8.3)    33.0   $ 0.14

Adjustments:

  Business              -      0.8         5.1     5.1    (1.7)     3.4     0.01
  integration,
  acquisition
  related and
  restructuring
  costs

  Purchased             -     15.1        21.2    21.2   (10.2)    11.0     0.04
  intangibles
  amortization

  Share-based           -      0.1         2.6     2.6    (0.7)     1.9     0.01
  compensation
                 ---------------------------------------------------------------
  Total                 -     16.0        28.9    28.9   (12.6)    16.3     0.06
  adjustments
                 ---------------------------------------------------------------
Adjusted results    264.4    189.2        73.6    70.2   (20.9)    49.3   $ 0.20



* Using 241.9 M
  diluted shares



 --- End of Message --- 

Qiagen N.V.
Spoorstraat 50 KJ Venlo Netherlands


Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse;





This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Qiagen N.V. via Thomson Reuters ONE

[HUG#1509830] 
  



                                                                                                                                                                                                          

a d v e r t i s e m e n t