Full Press Release Details
* 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, Feb. 9, 2009 (GLOBE NEWSWIRE) -- QIAGEN N.V. (Nasdaq:QGEN) (Frankfurt: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
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QIAGEN's Fiscal 2008
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in $ millions, except
per share information FY 2008 FY 2007 Growth
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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%
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(1) excluding business integration and restructuring related charges
as well as amortization of acquired intangibles and equity-based
(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).
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QIAGEN's Adjustments to Gross Profit, Operating Income,
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in $ millions unless
indicated Q4 2008 Q4 2007 FY 2008 FY 2007
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Gross profit, reported 157.5 138.8 599.7 433.5
charges 1.0 1.5 1.4 2.8
acquired intangibles 13.2 11.3 48.7 23.7
SFAS 123R impact 0.2 0.3 1.0 0.4
Gross profit, adjusted 171.9 151.9 650.8 460.4
reported 40.4 25.0 145.7 83.1
charges (COS) 1.0 1.5 1.4 2.8
Business integration
and related costs 4.4 8.1 30.9 14.9
Purchased in-process
research & development 0.2 -- 1.0 25.9
acquired intangibles
(incl. COS) 17.0 14.7 63.1 31.3
restructuring charges 0.5 0.1 1.2 0.5
(incl. COS) 3.1 2.4 9.4 5.8
adjusted 66.6 51.8 252.7 164.3
Net income, reported 24.7 15.0 89.0 50.1
charges (COS) 0.8 0.9 1.1 1.8
Business integration
and related costs 3.3 5.2 20.5 9.6
Purchased in-process
research & development 0.2 -- 1.0 25.9
restructuring charges 0.3 -- 0.8 0.4
Acquisition triggered
impairment -- -- 2.5 --
acquired intangibles 12.2 9.4 41.9 20.0
SFAS 123R impact 2.2 1.5 6.5 3.7
Net income, adjusted 43.7 32.0 163.3 111.5
common shares 202,039,000 205,233,000 204,259,000 175,959,000
EPS, reported in $ 0.12 0.07 0.44 0.28
EPS, adjusted in $ 0.22 0.16 0.80 0.63
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"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
-- 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
-- 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
-- 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