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Qiagen N.V. (0H1Z)

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Monday 03 May, 2010

Qiagen N.V.

QIAGEN Reports Strong First Quarter 2010 Results




Qiagen N.V. / QIAGEN Reports Strong First Quarter 2010 Results processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. 



  * 20% Revenue growth
  * 11% Organic growth
  * 22% Net income growth (adj.)
  * $0.20 Adjusted EPS


Venlo,  The  Netherlands,  May  3, 2010 -  QIAGEN N.V. (Nasdaq: QGEN; Frankfurt,
Prime  Standard: QIA) today announced the  results of operations for its quarter
ended March 31, 2010.

Net sales were at the high end of, and adjusted earnings per share for the first
quarter 2010 exceeded the guidance provided by the Company on February 9, 2010.


First Quarter 2010 Results

+---------------------------------------------------------------------------+
|QIAGEN's First Quarter 2010                                                |
+---------------------------------------------------------------------------+
|in US$ millions, except per share information Q1 2010 Q1 2009        Growth|
+---------------------------------------------------------------------------+
|                                                                           |
|                                                                           |
|Net sales                                       264.4   220.9           20%|
|                                                                           |
|Operating income, adjusted                       73.6    59.1           24%|
|                                                                           |
|Net income, adjusted                             49.3    40.3           22%|
|                                                                           |
|EPS, adjusted( )(US$)                            0.20    0.20              |
|                                                                           |
|                                                                           |
+---------------------------------------------------------------------------+


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

 accompanying this release.



The  Company reported that consolidated net sales for its first quarter of 2010
increased  20% to $264.4  million from  $220.9 million  for the  same quarter of
2009. Excluding  the favorable impact from  foreign currency exchange rates, net
sales  for the  first quarter  2010 would have  increased by  14% from the first
quarter  of  2009. Reported  operating  income  for the quarter increased 21% to
$44.7 million from $37.0 million in the same quarter of 2009, and net income for
the  quarter  increased  34% to  $33.0  million  from  $24.7 million in the same
quarter of 2009. Diluted earnings per share for the first quarter increased 17%
to  $0.14  in  2010 (based  on  241.9 million  weighted average shares and share
equivalents  outstanding) from  $0.12 in  2009 (based on  203.2 million weighted
average shares and share equivalents outstanding).

On  an adjusted  basis, first  quarter operating  income increased  24% to $73.6
million  in  2010 from  $59.1  million  in  2009, and first quarter adjusted net
income  increased  22% to  $49.3  million  in  2010 from $40.3 million in 2009.
Adjusted  diluted earnings per share  were $0.20 in the  first quarters of both,
2010 and 2009.

QIAGEN's  first quarter 2010 results include the  results of operations from the
Company's  recent acquisitions, the most significant of which were SABiosciences
Corporation,  acquired  in  December  2009, and  DxS Ltd., acquired in September
2009. Reconciliations   of   reported  results  determined  in  accordance  with
generally accepted accounting principles (GAAP) to adjusted results are included
in the tables accompanying this release.

"QIAGEN  experienced a successful  start into 2010," said  Peer Schatz, QIAGEN's
Chief  Executive Officer.  "We recorded  strong revenue  and adjusted net income
growth  and continued  to see  exciting momentum  in our  strategic position. We
launched 14 new products in the area of Sample & Assay Technologies and recorded
once  again an excellent 4% of sales from  products launched within the last 12
months.  We are also  managing an exceptionally  strong pipeline of new products
and are preparing for the 2010 launches of many strategically important products
including  the QIAensemble and QIAsymphony-RGQ platforms in Europe together with
their  broad menu of regulated assays for prevention, profiling and personalized
healthcare.

The  first  quarter  of  2010 was  a  quarter of very important strategic moves,
including  in molecular diagnostics. In the  field of prevention we extended our
support  of a cervical  cancer screening program  for underprivileged women with
the  Cancer Foundation  in China.  In the  area of  profiling we  established an
agreement  for  a  respiratory  pathogen  multiplex  assay  with  Celera  and in
personalized  healthcare  we  were  able  to  acquire  an  exclusive license for
biomarker PI3K from John Hopkins University, a gene discussed as a key biomarker
for use in companion diagnostics with certain cancer treatments and entered into
an  agreement to develop a companion  diagnostic with the pharmaceutical company
Pfizer  for  brain  tumor  patients.  In  the  field of point of need testing we
expanded  our  instrumentation  platform  with  a  portable,  battery  operated,
"ultra-fast  time to result", multiplex  UV and fluorescence optical measurement
device  through the  acquisition of  ESE GmbH  for use  in medical emergency and
critical care testing and in industrial environments.

In  addition, we experienced  good growth in  product sales to  our customers in
academia, the pharmaceutical industry and in applied markets.

We are very well positioned to take advantage of the growth opportunities we are
seeing  in  our  target  markets  and  are  fully on track to achieve our annual
targets."

"We  are pleased with our financial performance  in this first quarter of 2010.
Reported  revenues were  at the  high end  of, and  adjusted earnings  per share
exceeded  our expectations for the first  quarter of 2010," said Roland Sackers,
QIAGEN's Chief Financial Officer. "Revenue growth for the first quarter was 20%
fueled  by a strong organic growth of 11% and a positive contribution of 5% from
acquisitions.  In  addition  we  saw  high  growth  rates of 24% in our adjusted
operating income and of 22% in our adjusted net income.

Our  consumable portfolio represented  approximately 86% of our  total net sales
and   contributed   15% growth   (10%  at  constant  exchange  rates).  QIAGEN's
instrumentation  products contributed  approximately 14% of  our total net sales
and continued to show high growth rates of 46% (37% at constant exchange rates).
Highlights within our instrumentation portfolio were sample and assay technology
automation  platforms  such  as  our  EZ1  Advanced  XL,  the  QIAsymphony,  the
QIAgility,  the  Pyromark  and  the  Rotor-Gene  Q. The largest revenue share we
recorded  in  the  first  quarter  2010 was  in  sales to customers in molecular
diagnostics (approximately 45% of total revenues) followed by sales to customers
in academia (approximately 27% of total revenues), in pharma (approximately 21%
of total revenues) and in applied testing (approximately 7% of total revenues)."

"We  are reiterating our guidance for fiscal year 2010 based on foreign currency
exchange rates as of January 31, 2010, with expected revenues between $1,120 and
$1,170 million and adjusted diluted earnings per share between $0.90 and $0.96."


QIAGEN - Sample and Assay Technologies Highlights

  * QIAGEN acquired ESE GmbH, a developer and manufacturer of portable, battery
    operated, "ultra-fast time to result", multiplex UV and fluorescence optical
    measurement devices which enable low-throughput molecular testing in
    practices, emergency rooms, remote field areas, and other settings where a
    laboratory infrastructure is not accessible and fast turnaround is required.
  * QIAGEN and Pfizer entered into an agreement to develop a companion
    diagnostic assay for PF-04948568 (CDX-110), an immunotherapy vaccine in
    development for the treatment of glioblastoma multiforme (GBM). Glioblastoma
    multiforme is the most common malignant primary brain tumor in adults and
    occurs in around 25,000 patients worldwide each year. Pfizer's
    investigational drug PF-04948568 (CDX-110) is a peptide vaccine which
    targets the tumor-specific Epidermal Growth Factor Receptor variant III
    (EGFRvIII), a mutated form of the epidermal growth factor receptor that is
    only present in cancer cells and occurs in 25-40 percent of GBM tumors. The
    QIAGEN assay is designed to identify those patients whose tumors express the
    EGFRvIII mutation, allowing for the possibility of more targeted and
    personalized treatment.
  * QIAGEN acquired a global and exclusive license for biomarker PI3K from John
    Hopkins University and intends to develop PCR and real time-PCR assays for
    companion diagnostic use with certain cancer treatments. A number of studies
    suggest that mutations in the PI3K oncogene are indicative for successful
    antibody treatment of patients suffering from lung, breast and other
    cancers. The license includes all countries and allows QIAGEN to enter
    partnerships with pharmaceutical companies to develop and market tests for
    new cancer drug candidates.
  * QIAGEN launched 14 new products in the area of Sample & Assay Technologies
    including the second module of the QIAsymphony, the QIAsymphony AS for
    automated assay setup in combination with the QIAsymphony SP, the
    QIAxtractor, a high throughput nucleic acid purification system and miScript
    PCR products for use in real time PCR set ups while working with miRNA. In
    addition QIAGEN launched a number of molecular diagnostic assays including
    CE labeled artus real time PCR assays for the detection of the BK virus, the
    VZV (varicella-zoster virus) and the CE labeled QIAsymphony AXpH DNA Kit for
    DNA extraction from PreservCyt Liquid Cytology samples on the QIAsymphony
    for HPV testing.


Conference Call and Webcast Details

Detailed  information  on  QIAGEN's  business  and financial performance will be
presented  during its conference call on  May 4, 2010 at 9:30am ET (3:30pm CET).
The  corresponding presentation  slides will  be available  for download  on the
Company's          website         at         www.qiagen.com/goto/ConferenceCall
<

http://www.qiagen.com/goto/ConferenceCall>.  A webcast  of the  conference call
will     also     be     available     at     www.qiagen.com/goto/ConferenceCall
<

http://www.qiagen.com/goto/ConferenceCall>.

Use of Adjusted Results

QIAGEN  has regularly reported adjusted results  to give additional insight into
its  financial  performance  and  has  also  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 to provide additional
insight into the Company's performance 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.

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 these isolated biomolecules visible. QIAGEN
has  developed  and  markets  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  first  FDA-approved  test  for  human
papillomavirus  (HPV), the primary cause of cervical cancer. QIAGEN employs more
than  3,500 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   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  the  applied  testing  markets,  personal  healthcare  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  and  protect  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 US$ thousands, except per share data)               ended March 31,
                                                      --------------------


                                                         2010      2009

 Net sales                                              264,364   220,933

    Cost of sales                                        91,152    74,484
                                                      --------------------
 Gross profit                                           173,212   146,449
                                                      --------------------


 Operating expenses:

    Research and development                             31,597    25,643

    Sales and marketing                                  64,436    56,098

    General and administrative, integration and other    26,340    23,788

    Acquisition-related intangible amortization           6,158     3,891
                                                      --------------------
 Total operating expenses                               128,531   109,420
                                                      --------------------


 Income from operations                                  44,681    37,029
                                                      --------------------


 Other income (expense):

    Interest income                                         689     1,185

    Interest expense                                    (6,254)   (7,431)

    Other income, net                                     2,235     1,781
                                                      --------------------
 Total other expense                                    (3,330)   (4,465)
                                                      --------------------


 Income before provision for income taxes                41,351    32,564

 Provision for income taxes                               8,337     7,880
                                                      --------------------
 Net income                                              33,014    24,684
                                                      --------------------


 Weighted average number of diluted common shares       241,924   203,168



 Diluted net income per common share                     $ 0.14    $ 0.12



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






                                  QIAGEN N.V.
                     CONDENSED CONSOLIDATED BALANCE SHEETS





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

                                                        2010           2009

 Assets                                              (unaudited)

 Current Assets:

 Cash and cash equivalents                               794,770        825,557

 Short-term investments                                   94,000         40,000

 Accounts receivable, net                                190,220        193,737

 Income taxes receivable                                  12,706         12,907

 Inventories, net                                        125,118        130,851

 Prepaid expenses and other                               86,819         96,893

 Deferred income taxes                                    27,978         33,525

 Total current assets                                  1,331,611      1,333,470



 Long-Term Assets:

 Property, plant and equipment, net                      312,424        317,467

 Goodwill                                              1,328,160      1,337,064

 Intangible assets, net                                  745,800        752,296

 Deferred income taxes                                    28,142         26,387

 Other assets                                             34,062         29,780

 Total long-term assets                                2,448,588      2,462,994



 Total assets                                          3,780,199      3,796,464



 Liabilities and Shareholders' Equity



 Current Liabilities:

 Accounts payable                                         45,572         43,775

 Accrued and other liabilities                           209,479        248,699

 Income taxes payable                                     12,212         10,727

 Current portion of long-term debt                        50,000         50,000

 Current portion of capital lease obligations              3,380          3,417

 Deferred income taxes                                    17,497         18,912

 Total current liabilities                               338,140        375,530



 Long-Term Liabilities:

 Long-term debt, net of current portion                  870,000        870,000

 Capital lease obligations, net of current portion        26,818         27,554

 Deferred income taxes                                   209,115        212,690

 Other                                                    25,061         19,521

 Total long-term liabilities                           1,130,994      1,129,765



 Shareholders' Equity:

 Common shares, EUR .01 par value:

 Authorized--410,000 shares

 Issued and outstanding--232,384 shares

 in 2010 and 232,074 shares in 2009                        2,715          2,711

 Additional paid-in-capital                            1,629,486      1,622,733

 Retained earnings                                       648,593        615,579

 Accumulated other comprehensive income                   30,271         50,146

 Total shareholders' equity                            2,311,065      2,291,169



 Total liabilities and shareholders' equity            3,780,199      3,796,464







                                  QIAGEN N.V.
                 RECONCILIATION OF REPORTED TO ADJUSTED FIGURES
                                  (unaudited)


                       Three months ended March 31, 2010
                       (in US$ millions, except EPS data)





                                    Operating Pre-tax                    Diluted

                   Net      Gross                       Income    Net
                  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
integration,
acquisition
related

and
restructuring
costs                   -       0.8       5.1      5.1    (1.7)      3.4    0.01

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

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


* Using 241.9 M diluted shares





                       Three months ended March 31, 2009
                       (in US$ millions, except EPS data)




                                     Operating Pre-tax                   Diluted

                   Net      Gross                       Income    Net
                  Sales     Profit    Income   Income    Tax     Income   EPS*
                ----------------------------------------------------------------
Reported results    220.9      146.4      37.0    32.6    (7.9)     24.7  $ 0.12



Adjustments:

Business
integration,
acquisition
related

and
restructuring
costs                   -        0.3       3.0     3.0    (0.9)      2.1    0.01

Purchased
intangible
amortization            -       13.0      16.9    16.9    (5.9)     11.0    0.06



Share-based
compensation            -        0.2       2.2     2.2    (0.7)      1.5    0.01

Asset impairment        -          -         -     1.5    (0.5)      1.0       -
                ----------------------------------------------------------------
Total
adjustments             -       13.5      22.1    23.6    (8.0)     15.6    0.08
                ----------------------------------------------------------------
Adjusted results    220.9      159.9      59.1    56.2   (15.9)     40.3  $ 0.20
                ----------------------------------------------------------------




* Using 203.2 M diluted shares



Contacts:

QIAGEN Investor Relations:               QIAGEN Public Relations:

Dr. Solveigh Mähler                      Dr. Thomas Theuringer
Director Investor Relations              Director Public Relations
+49 2103 29 11710                        +49 2103 29 11826
email: [email protected]       email: [email protected]
<mailto:[email protected]>     <mailto:[email protected]>

Albert F. Fleury
Director Corporate Finance and Investor
Relations NA
+1 301 944 7028
email: [email protected]
<mailto:[email protected]>





[HUG#1411313]



 --- End of Message --- 

Qiagen N.V.
Spoorstraat 50 KJ Venlo Netherlands

ISIN: NL0000240000;
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