Attached files
| file | filename |
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| 8-K - FORM 8-K - QUIDEL CORP /DE/ | a58793e8vk.htm |
Exhibit 99.1
| Quidel Contact: | Media and Investors Contact: | |
| Quidel Corporation John M. Radak, Chief Financial Officer (858) 646-8032 |
Quidel Corporation Ruben Argueta (858) 646-8023 rargueta@quidel.com |
QUIDEL REPORTS FOURTH QUARTER AND FULL YEAR 2010 RESULTS
SAN DIEGO, Feb 24, 2011 (BUSINESS WIRE) — Quidel Corporation (NASDAQ: QDEL), a leading
provider of rapid diagnostic testing solutions, announced today financial results for the fourth
quarter and full year ended December 31, 2010.
Fourth Quarter 2010 Results
For the fourth quarter of 2010, total revenues were $31.7 million, compared to $66.6 million for
the fourth quarter of 2009, a decrease of 52%, largely due to higher than normal revenues in 2009
associated with the H1N1 pandemic. Partially offsetting the decrease in total revenues was an
increase in sales as a result of the acquisition of Diagnostic Hybrids in February 2010.
International revenues were $3.4 million in the fourth quarter of 2010 compared to $12.6 million in
the fourth quarter of 2009.
Net loss for the fourth quarter of 2010 was $0.4 million, or $0.02 per share, compared to net
income of $20.1 million, or $0.67 per diluted share, for the fourth quarter of 2009. On a non-GAAP
basis, excluding non-recurring items and amortization of acquired intangibles, net income for the
fourth quarter of 2010 was $0.6 million, or $0.02 per diluted share, compared to net income of
$20.4 million, or $0.68 per diluted share for the same period of 2009.
“Revenues in the fourth quarter were expected to remain modest since outpatient visits for
influenza-like illness in the United States remained below the national baseline until late
December. As a result, any meaningful end-user demand for QuickVue® Influenza products did not
occur until the end of 2010,” said Douglas Bryant, president and CEO of Quidel Corporation. “Thus
far in 2011, we appear to be experiencing a typical flu season and expect demand for QuickVue®
Influenza products to be similar to the level we saw in 2008.”
Results for the Year Ended December 31, 2010
Total revenues declined 31% to $113.3 million for the year ended December 31, 2010 from $164.3
million for the same period in 2009. Net loss for the year ended 2010 was $11.3 million, or $0.39
per share, compared to net income of $32.9 million, or $1.08 per diluted share, for the same period
of the prior year. On a non-GAAP basis, excluding non-recurring items and amortization of acquired
intangibles, net loss for the year ended December 31, 2010 was $6.0 million, or $0.21 per share,
compared to net income of $34.4 million, or $1.13 per diluted share for the same period of 2009.
Included in diluted earnings per share for the year ended 2010 are business acquisition
costs of $2.3 million or $0.08 per share.
“The absence of a flu season in 2010 and its impact to our financial performance further
demonstrated the company’s dependence on flu and the need to broaden its product portfolio. In a
financially challenging year, we acquired and integrated DHI, introduced six products into the
marketplace and partnered with Northwestern University to further the development of an integrated
molecular system,” Bryant continued. “These milestones were an important part of creating a
broader-based business, and we are encouraged by the significant progress made in realizing our
longer-term goals.”
Non-GAAP Financial Information
The Company is providing non-GAAP financial information to reflect the effect of certain
non-recurring items 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
presentation 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 fourth quarter and full year 2010
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) 510-0711 or from outside the
U.S. dial (617) 597-5379, and enter the passcode 71716499.
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 82016090.
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 leading brand names
QuickVue®, D3® Direct Detection and Thyretain™, Quidel’s products aid in the detection
and diagnosis of many critical diseases and conditions, including 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 www.quidel.com and Diagnostic Hybrids at www.dhiusa.com.
This press release contains forward-looking statements within the meaning of the federal securities
laws that involve material risks, assumptions and uncertainties. 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 molecular-based technology, the medical reimbursement system currently in place and
future changes to that system, manufacturing and production delays or difficulties, adverse actions
or delays in product reviews by the U.S. Food and Drug Administration (the “FDA”), our ability to
comply with FDA, environmental and other regulations, our ability to meet unexpected increases in
demand for our products, our ability to execute our 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, adverse
changes in our international markets, 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 CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION OF NON-GAAP ADJUSTMENTS (1)
(In thousands, except per share data; unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION OF NON-GAAP ADJUSTMENTS (1)
(In thousands, except per share data; unaudited)
| Three months ended | Three months ended | |||||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
Total revenues |
$ | 31,709 | $ | — | $ | 31,709 | $ | 66,597 | $ | — | $ | 66,597 | ||||||||||||
Cost of sales (excludes amortization of intangible assets) |
13,811 | — | 13,811 | 19,049 | — | 19,049 | ||||||||||||||||||
Research and development |
5,799 | — | 5,799 | 3,523 | — | 3,523 | ||||||||||||||||||
Sales and marketing |
5,904 | — | 5,904 | 6,809 | — | 6,809 | ||||||||||||||||||
General and administrative |
4,679 | — | 4,679 | 4,658 | — | 4,658 | ||||||||||||||||||
Amortization of intangible assets from acquired businesses |
1,623 | (1,623) | (2) | — | — | — | — | |||||||||||||||||
Amortization of intangible assets from licensed technology |
393 | — | 393 | 324 | — | 324 | ||||||||||||||||||
Business acquisition and integration costs |
95 | (95) | (3) | — | 457 | (457) | (3) | — | ||||||||||||||||
Total costs and expenses |
32,304 | (1,718 | ) | 30,586 | 34,820 | (457 | ) | 34,363 | ||||||||||||||||
Operating (loss) income |
(595 | ) | 1,718 | 1,123 | 31,777 | 457 | 32,234 | |||||||||||||||||
Interest expense |
(690 | ) | — | (690 | ) | (308 | ) | — | (308 | ) | ||||||||||||||
Interest income |
19 | — | 19 | 69 | — | 69 | ||||||||||||||||||
Other expense |
— | — | — | 4 | — | 4 | ||||||||||||||||||
Total other expense |
(671 | ) | — | (671 | ) | (235 | ) | — | (235 | ) | ||||||||||||||
(Loss) income before income taxes |
(1,266 | ) | 1,718 | 452 | 31,542 | 457 | 31,999 | |||||||||||||||||
Income tax (benefit) expense |
(840 | ) | 687 | (4) | (153 | ) | 11,435 | 183 | 11,618 | |||||||||||||||
Net (loss) income |
$ | (426 | ) | $ | 1,031 | $ | 605 | $ | 20,107 | $ | 274 | $ | 20,381 | |||||||||||
Basic (loss) earnings per share: |
$ | (0.02 | ) | $ | 0.02 | $ | 0.68 | $ | 0.69 | |||||||||||||||
Diluted (loss) earnings per share: |
$ | (0.02 | ) | $ | 0.02 | $ | 0.67 | $ | 0.68 | |||||||||||||||
Weighted shares used in basic per share calculation |
28,192 | 28,192 | 29,460 | 29,460 | ||||||||||||||||||||
Weighted shares used in diluted per share calculation |
28,192 | 28,192 | 29,930 | 29,930 | ||||||||||||||||||||
Gross profit as a % of total revenues |
56 | % | 56 | % | 71 | % | 71 | % | ||||||||||||||||
Research and development as a % of total revenues |
18 | % | 18 | % | 5 | % | 5 | % | ||||||||||||||||
Sales and marketing as a % of total revenues |
19 | % | 19 | % | 10 | % | 10 | % | ||||||||||||||||
General and administrative as a % of total revenues |
15 | % | 15 | % | 7 | % | 7 | % | ||||||||||||||||
| (1) | The Company reports Non-GAAP results which primarily excludes certain acquisition related costs to provide a supplemental comparison of the results of operations. |
| (2) | Add back amortization of acquired intangibles |
| (3) | Add back business acquisition and integration costs |
| (4) | The Company’s marginal tax rate is approximately 40% and has been applied to Non-GAAP adjustments. |
| Condensed balance sheet data (in thousands): | 12/31/10 | 12/31/09 | ||||||
Cash, cash equivalents and marketable securities |
$ | 6,788 | $ | 93,002 | ||||
Accounts receivables |
13,477 | 9,717 | ||||||
Inventory |
17,707 | 15,038 | ||||||
Total assets |
214,593 | 166,345 | ||||||
Long term debt |
79,774 | 6,527 | ||||||
Stockholders’ equity |
112,521 | 126,450 | ||||||
QUIDEL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION OF NON-GAAP ADJUSTMENTS (1)
(In thousands, except per share data; unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION OF NON-GAAP ADJUSTMENTS (1)
(In thousands, except per share data; unaudited)
| Twelve months ended | Twelve months ended | |||||||||||||||||||||||
| December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
Total revenues |
$ | 113,339 | $ | — | $ | 113,339 | $ | 164,282 | $ | — | $ | 164,282 | ||||||||||||
Cost of sales (excludes amortization of intangible assets) |
51,489 | — | 51,489 | 55,218 | — | 55,218 | ||||||||||||||||||
Amortization of inventory fair value adjustment from acquisition |
1,118 | (1,118) | (2) | — | — | — | — | |||||||||||||||||
Total cost of sales (excludes amortization of intangible assets) |
52,607 | (1,118 | ) | 51,489 | 55,218 | — | 55,218 | |||||||||||||||||
Research and development |
24,571 | — | 24,571 | 12,526 | — | 12,526 | ||||||||||||||||||
Sales and marketing |
23,972 | — | 23,972 | 23,347 | — | 23,347 | ||||||||||||||||||
General and administrative |
18,471 | — | 18,471 | 16,783 | — | 16,783 | ||||||||||||||||||
Amortization of intangible assets from acquired businesses |
5,366 | (5,366) | (3) | — | — | — | — | |||||||||||||||||
Amortization of intangible assets from licensed technology |
1,365 | — | 1,365 | 1,364 | — | 1,364 | ||||||||||||||||||
Business acquisition and integration costs, and restructuring charges |
2,276 | (2,276) | (4) | — | 2,495 | (2,495) | (4) | — | ||||||||||||||||
Total costs and expenses |
128,628 | (8,760 | ) | 119,868 | 111,733 | (2,495 | ) | 109,238 | ||||||||||||||||
Operating (loss) income |
(15,289 | ) | 8,760 | (6,529 | ) | 52,549 | 2,495 | 55,044 | ||||||||||||||||
Interest expense |
(2,345 | ) | — | (2,345 | ) | (767 | ) | — | (767 | ) | ||||||||||||||
Interest income |
214 | — | 214 | 372 | — | 372 | ||||||||||||||||||
Other expense |
— | — | — | (5 | ) | — | (5 | ) | ||||||||||||||||
Total other expense |
(2,131 | ) | — | (2,131 | ) | (400 | ) | — | (400 | ) | ||||||||||||||
(Loss) income before income taxes |
(17,420 | ) | 8,760 | (8,660 | ) | 52,149 | 2,495 | 54,644 | ||||||||||||||||
Income tax (benefit) expense |
(6,149 | ) | 3,504 | (5) | (2,645 | ) | 19,266 | 998 | (5) | 20,264 | ||||||||||||||
Net (loss) income |
$ | (11,271 | ) | $ | 5,256 | $ | (6,015 | ) | $ | 32,883 | $ | 1,497 | $ | 34,380 | ||||||||||
Basic (loss) earnings per share: |
$ | (0.39 | ) | $ | (0.21 | ) | $ | 1.10 | $ | 1.15 | ||||||||||||||
Diluted (loss) earnings per share: |
$ | (0.39 | ) | $ | (0.21 | ) | $ | 1.08 | $ | 1.13 | ||||||||||||||
Weighted shares used in basic per share calculation |
28,582 | 28,582 | 29,964 | 29,964 | ||||||||||||||||||||
Weighted shares used in diluted per share calculation |
28,582 | 28,582 | 30,418 | 30,418 | ||||||||||||||||||||
Gross profit as a % of total revenues |
54 | % | 55 | % | 66 | % | 66 | % | ||||||||||||||||
Research and development as a % of total revenues |
22 | % | 22 | % | 8 | % | 8 | % | ||||||||||||||||
Sales and marketing as a % of total revenues |
21 | % | 21 | % | 14 | % | 14 | % | ||||||||||||||||
General and administrative as a % of total revenues |
16 | % | 16 | % | 10 | % | 10 | % | ||||||||||||||||
| (1) | The Company reports Non-GAAP results which primarily excludes certain acquisition related costs to provide a supplemental comparison of the results of operations. | |
| (2) | Add back fair value amortization of inventory write-up associated with the acquisition of DHI | |
| (3) | Add back amortization of acquired intangibles | |
| (4) | Add back business acquisition and integration costs and restructuring charges | |
| (5) | The Company’s marginal tax rate is approximately 40% and has been applied to Non-GAAP adjustments |