Full Press Release Details
* 34% Constant Currency and 12% Organic Revenue Growth in 2007
* 31% Growth in Adjusted Net Income in 2007
* Fourth Quarter 2007 Adjusted EPS Exceeds Guidance by $0.02
* Guidance 2008: Revenues $875 to $905 million (growth rate 35% to 40%)
Adj. EPS $0.76 to $0.80
VENLO, The Netherlands, Feb. 11, 2008 (PRIME NEWSWIRE) -- QIAGEN N.V. (Nasdaq:QGEN) (Frankfurt:QIA) today announced the results of operations for the fourth quarter and the fiscal year ended December 31, 2007.
The reported net sales and adjusted earnings per share for the fourth quarter and fiscal 2007 exceeded the guidance provided by the Company on November 11, 2007.
QIAGEN's fourth quarter and fiscal 2007 results include the results of operations of Digene Corporation and eGene, Inc. from the dates of acquisition as well as charges related to these acquisitions.
Fourth Quarter 2007 Results
The Company reported that consolidated net sales for its fourth quarter 2007 increased 67% to $210.2 million from $125.9 million for the same quarter in 2006. Reported operating income for the quarter decreased 7% to $25.0 million from $26.9 million in the same quarter of 2006, and net income for the quarter decreased 23% to $15.0 million from $19.4 million in the same quarter of 2006. Diluted earnings per share for the fourth quarter decreased to $0.07 in 2007 (based on 205.2 million weighted average shares and share equivalents outstanding) from $0.13 in 2006 (based on 154.8 million weighted average shares and share equivalents outstanding).
On an adjusted basis, fourth quarter operating income increased 55% to $51.8 million in 2007 from $33.5 million in 2006, and fourth quarter 2007 adjusted net income increased 31% to $32.0 million from $24.4 million in 2006. Adjusted diluted earnings per share were $0.16 in both the fourth quarter 2007 and 2006.
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QIAGEN's Fiscal 2007 (in US$ millions, except per share information)
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FY 2007 FY 2006 Growth
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Net sales 649.8 465.8 40%
Operating income, adj.(1) 164.3 120.9 36%
Net income, adj.(1) 111.5 85.3 31%
EPS, adj.(1) (US$) 0.63 0.56 13%
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(1) excluding acquisition, integration and restructuring related
charges as well as amortization of acquired IP and
equity-based compensation (SFAS 123R) as detailed in the
Fiscal Year 2007 Results
For the year ended December 31, 2007, net sales increased 40% to $649.8 million compared to $465.8 million in 2006. Operating income as reported for fiscal 2007 decreased 17% to $83.1 million from $100.6 million for 2006, and net income decreased 29% to $50.1 million in 2007 from $70.5 million in 2006, and diluted earnings per share decreased to $0.28 in 2007 from $0.46 in 2006.
On an adjusted basis, operating income for the year ended December 31, 2007 increased 36% to $164.3 million from $120.9 million in 2006, and adjusted net income increased 31% to $111.5 million in 2007 from $85.3 million in 2006. Adjusted diluted earnings per share for the year ended December 31, 2007 increased 13% to $0.63 per share, from $0.56 per share in 2006.
QIAGEN has regularly reported adjusted results to give an additional insight into its financial performance. Adjusted results should be considered in addition to the reported results prepared in accordance with generally accepted accounting principles, but should not be considered a substitute. The Company believes certain items should be excluded from adjusted results when they are either outside of our ongoing core operations or vary significantly from period to period, which affects the comparability of results with the Company's competitors and its own prior periods. Costs and charges excluded from adjusted results include acquisition, integration, restructuring and related costs, acquisition-related amortization, and compensation cost due to equity based compensation in accordance with Statement of Financial Accounting Standards No. 123 (Revised) (SFAS 123R).
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QIAGEN's Adjustments to Gross Profit, Operating Income,
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unless indicated Q4 2007 Q4 2006 FY 2007 FY 2006
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reported 138.8 86.4 433.6 318.5
charges 1.5 0.3 2.8 2.1
acquired IP 11.4 1.8 23.6 6.1
SFAS 123R impact 0.3 0.0 0.4 0.0
adjusted 152.0 88.5 460.4 326.7
reported 25.0 26.9 83.1 100.6
charges (incl. COS) 9.6 1.4 17.6 8.1
Purchased in-process
development 0.0 1.9 25.9 2.2
charges 0.0 0.7 0.6 1.5
(incl. COS) 14.8 2.5 31.3 8.2
(incl. COS) 2.4 0.1 5.8 0.3
adjusted 51.8 33.5 164.3 120.9
Net income, reported 15.0 19.4 50.1 70.5
related charges 6.1 1.0 11.3 6.1
Purchased in-process
development 0.0 1.9 25.9 2.2
charges 0.0 0.5 0.4 1.0
acquired IP 9.4 1.6 20.0 5.3
SFAS 123R impact 1.5 0.0 3.8 0.2
Net income, adjusted 32.0 24.4 111.5 85.3
common shares 194,852,000 150,009,000 168,457,000 149,504,000
common shares 205,233,000 154,783,000 175,959,000 153,517,000
US$ 0.07 0.13 0.28 0.46
US$ 0.16 0.16 0.63 0.56
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"2007 was a very successful year for QIAGEN. We executed on our strategy and significantly increased our technology and market leadership in sample and assay technologies in all of our customer segments," said Peer Schatz, QIAGEN's Chief Executive Officer. "In particular, the integration of the rapidly growing QIAGEN molecular diagnostics business with Digene's in terms of size and growth comparable molecular diagnostics leadership in HPV testing resulted in a very strong leadership position for QIAGEN in molecular diagnostics overall. Molecular diagnostics today represents about 50% of our current sales and presents a very strong growth outlook.
"The launches of 72 new products in 2007 contributed 4% to 2007 net sales growth. This result is another demonstration of the success of QIAGEN's innovation strategy. New products included innovative sample and assay technologies for research in the areas of epigenetics, gene expression, micro RNA, proteomics, RNAi, applied testing and molecular diagnostics as well as innovative platform solutions such as the very successful QIAcube. Our full pipeline of new products and a strong strategic position build a solid basis for our success in 2008 and beyond.
"We expect a number of exciting new market introductions in 2008. These include a further expansion of our sample and assay technology portfolio for research in applied testing and molecular diagnostics. We are significantly investing in clinical trials for a number of molecular diagnostic products with the goal of adding more regulated products to our portfolio," Mr. Schatz added. "Our pipeline of automated solutions for our sample and assay technologies is exceptionally strong. The major launch within this portfolio was the launch of QIAsymphonySP in January -- the first module of a novel modular processing platform which can integrate entire workflows in molecular processing. QIAsymphony is already generating a lot of excitement and has the potential to bring significant value to our customers.
"Our acquisition strategy remained focused, consistent and value-creating, providing complementary technologies, new commercial capabilities and/or geographic reach. With the acquisition of Digene we added an exciting new product portfolio in women's health to our molecular diagnostics franchise, which approximated Digene's size and growth rates prior to the acquisition. This acquisition catapulted QIAGEN into a fast growing leadership position for sample and assay technologies in molecular diagnostics (excluding viral load and blood banking). Our assay portfolio is considered to be the broadest and our sales and marketing force in molecular diagnostics the most powerful in the industry.
"Even more exciting, we achieved our strong financial results in 2007 while experiencing significant strategic momentum and executing on a significant integration effort. I want to thank our employees around the world for their contributions to our performance in 2007 and to building long-term success and leadership for QIAGEN."
"QIAGEN experienced an exciting fourth quarter and fiscal year 2007. Reported revenues and adjusted earnings per share exceeded our increased guidance and reflected our good progress in integrating acquired businesses," said Roland Sackers, QIAGEN's Chief Financial Officer. "Revenue growth for the full year was 40% and was fueled by strong organic growth of 12% and positive contribution of 22% from acquisitions. Our consumable portfolio contributed 34% growth at constant exchange rates in 2007.
"QIAGEN's instrumentation products showed a very strong growth rate at constant exchange rates of 35% in 2007," Mr. Sackers continued. "Net sales for the fiscal year 2007 recorded in North America represented approximately 46% of our overall business and recorded a growth rate of 47% whereby European sales, which represent approximately 41% of our revenues, showed a growth rate of approximately 21% at constant exchange rates. Net sales in Asia showed a very strong growth rate of 39% at constant exchange rates in fiscal 2007 driven by a strong demand primarily in molecular diagnostics."
QIAGEN expects revenues between $875 and $905 million in 2008 representing a revenue growth rate between 35% and 40% when compared to 2007 and adjusted diluted earnings per share between $0.76 and $0.80. The Company will provide detailed guidance in the Company's conference call on February 12, 2008.
Detailed information on the Company's business and financial performance will be presented in the Company's conference call on February 12, 2008 at 9:30 a.m. ET. The corresponding presentation slides will be available for download on the Company's website at www.qiagen.com/goto/120208. A webcast of the conference call will be available on the same website at www.qiagen.com/goto/120208.
QIAGEN -- Sample and Assay Technologies Highlights:
* QIAGEN introduced QIAsymphony SP, the first system of a novel
modular processing platform which can be integrated to automate
entire workflows -- from sample to result. The QIAsymphony offers
highest flexibility, convenience and safety for a broad range of
sample and assay applications.
* QIAGEN and BioOne* Capital entered into an joint venture to
establish Dx Assay Pte Ltd one of the first centers in Singapore for
assay development in which molecular diagnostics for infectious and
genetic diseases will be developed.
* QIAGEN has been awarded an exclusive contract by the Singapore
Ministry of Health to supply sample preparation solutions and
molecular tests for the specific detection of Influenza H5N1 viruses
(avian flu virus). The contract with the Singapore Ministry of
Health is the latest supply agreement of QIAGEN with public and
private institutions engaged in H5N1 surveillance. More than 80
institutes worldwide involved in the surveillance of avian flu
infection use procedures and reagents developed and offered by
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QIAGEN's Fiscal 2007 at Constant Currencies
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As percentage 2007 FY 2006 -------------------
of net sales, FY Constant FY Constant
unless indicated Reported Currency Reported Reported Currency
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Consumables 89% 89% 89% 40% 34%
Instruments 10% 10% 10% 40% 35%
Others 1% 1% 1% 30% 22%
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Total revenues 100% 100% 100% 40% 34%
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Gross margin 67% 67% 68% 36% 32%