Full Press Release Details
* 19% Revenue Growth, 15% Constant Currency and 11% Organic Growth
* 30% Adjusted Net Income Growth
* $0.16 Adjusted EPS
VENLO, The Netherlands, Aug. 6, 2007 (PRIME NEWSWIRE) -- QIAGEN N.V. (Nasdaq:QGEN) (Frankfurt:QIA) today announced the results of operations for the quarter ended June 30, 2007.
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QIAGEN's Second Quarter
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Q2 2007 Q2 2006 Growth
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Net sales (US$m) 135.0 113.2 19%
Operating margin, adj. (a) 27% 26% --
Net income, adj. (US$) (a) 25.8 19.8 30%
EPS, adj. (US$) (a) 0.16 0.13 23%
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(a) excluding acquisition, integration and restructuring related
charges as well as amortization of acquired IP and equity-based
compensation (SFAS 123R)
The Company reported that consolidated net sales for its second quarter 2007 increased 19% to $135.0 million from $113.2 million for the same period in 2006. Reported operating income for the quarter increased 43% to $31.0 million from $21.7 million in the same quarter of 2006, and net income for the quarter increased 60% to $22.6 million from $14.2 million in the same quarter of 2006. Diluted earnings per share for the second quarter increased 56% to $0.14 in 2007 (based on 156.9 million weighted average shares and share equivalents outstanding) from $0.09 in 2006 (based on 153.2 million weighted average shares and share equivalents outstanding).
On an adjusted basis, second quarter operating income increased 24% to $36.0 million in 2007 from $29.1 million in 2006, and second quarter 2007 adjusted net income increased 30% to $25.8 million from $19.8 million in 2006. Adjusted diluted earnings per share in the second quarter 2007 increased 23% to $0.16 per share, from $0.13 per share in the second quarter 2006.
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QIAGEN's Second Quarter 2007 at Constant Currencies
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2007 2007 2006 Growth Rates
As percentage Q2 Q2 Q2
of net sales, Constant Constant
unless indicated Reported Currency Reported Reported Currency
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Consumables 89% 89% 90% 19% 15%
Instruments 10% 10% 9% 32% 29%
Others 1% 1% 1% -19% -23%
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Total revenues 100% 100% 100% 19% 15%
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margin 23% 23% 19% 43% 41%
margin, adj. (a) 27% 27% 26% 24% 22%
Net income margin 17% 17% 12% 60% 59%
adj. (a) 19% 20% 18% 30% 30%
share 0.14 0.14 0.09 56% 56%
share, adj. (a) 0.16 0.16 0.13 23% 23%
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(a) excluding acquisition, integration and restructuring related
charges as well as amortization of acquired IP and equity-based
compensation (SFAS 123R)
For the six-month period ended June 30, 2007, net sales increased 18% to $262.9 million compared to $221.9 million in the comparable period of 2006. Operating income as reported for the first half of 2007 increased 27% to $59.8 million from $47.0 million for the same period in 2006, net income increased 34% to $42.5 million from $31.7 million in 2006, and diluted earnings per share increased 29% to $0.27 from $0.21.
On an adjusted basis, operating income for the six-month period ended June 30, 2007 increased 21% to $68.8 million in 2007 from $56.9 million in 2006, and adjusted net income increased 24% to $48.4 million from $39.0 million. Adjusted diluted earnings per share in the six months ended June 30, 2007 increased 19% to $0.31 per share from $0.26 per share in the same period of 2006.
QIAGEN has regularly reported adjusted results to give an additional insight into its financial performance. Adjusted results should be considered in addition to the reported results prepared in accordance with generally accepted accounting principles, but should not be considered a substitute. The Company believes certain items should be excluded from adjusted results when they are either outside of our ongoing core operations or vary significantly from period to period, which affects the comparability of results with the Company's competitors and its own prior periods. Costs and charges excluded from adjusted results include acquisition, integration, restructuring and related costs, acquisition-related amortization, and compensation cost due to equity based compensation in accordance with Statement of Financial Accounting Standards No. 123 (SFAS 123R).
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QIAGEN's Adjustments to Operating Income, Net Income and EPS
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unless indicated Q2 2007 Q2 2006 6 M 2007 6 M 2006
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reported 31.04 21.72 59.83 46.96
charges 1.34 4.63 2.04 5.58
charges 0.07 0.78 0.48 0.78
SFAS 123R Impact 0.89 0.06 1.22 0.14
acquired IP 2.66 1.89 5.25 3.40
adjusted 36.00 29.08 68.82 56.86
Net income, reported 22.58 14.15 42.45 31.73
charges 0.86 3.84 1.32 4.48
charges 0.04 0.57 0.36 0.57
SFAS 123R Impact 0.59 0.04 0.80 0.09
acquired IP 1.74 1.22 3.44 2.17
Net income, adjusted 25.81 19.82 48.37 39.04
common shares 156,902,000 153,233,000 156,550,000 152,782,000
in US$ 0.14 0.09 0.27 0.21
in US$ 0.16 0.13 0.31 0.26
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"QIAGEN experienced a very strong second quarter 2007. We saw strong revenue and earnings growth which exceeded our expectations. In addition, we see exciting momentum in our focused, strategic position," said Peer Schatz, QIAGEN's Chief Executive Officer.
"The financial results reported today do not yet include any contributions from the financial results of Digene Corporation. In the second quarter we announced our agreement to acquire Digene and completed the acquisition on July 30. In the three months ended June 30, 2007, Digene's revenues grew approximately 31% to $56.8 million from $43.3 million in the same quarter of 2006 -- exceeding Digene's guidance for this quarter.
"This transaction is an exciting and important step for QIAGEN. It creates instantaneous market and technology leadership in molecular diagnostics -- one of the most exciting areas of today's life sciences and healthcare. In addition, it catalyzes many opportunities to drive top-line and bottom-line growth. We look forward to leveraging our core capabilities to drive future growth and to delivering the significant benefits of the combination to all of our shareholders."
Taking into consideration the Company's strong performance for the first two quarters, QIAGEN increases its guidance for adjusted diluted EPS for the full year 2007 from the previously announced $0.60-$0.63 to $0.62-$0.64 before the impact of QIAGEN's recently concluded acquisitions of Digene and eGene.
Based on the previously communicated impact of the Digene and eGene acquisitions during the second half of 2007, QIAGEN forecasts revenues to increase for fiscal 2007 from the previously announced $518-$535 million (based on constant exchange rates as of January 31, 2007) to $614-$635 million. QIAGEN expects adjusted diluted EPS (based on an estimated weighted average number of fully diluted shares outstanding of approximately 180 million) for the full year 2007 to be in the range of $0.55-$0.59.
"We are pleased with our financial performance in this second quarter of 2007. Reported revenues and adjusted earnings per share came in very strong and exceeded the Company's expectations," said Roland Sackers, QIAGEN's Chief Financial Officer. "Revenue growth for the second quarter was 19% and was fueled by a strong organic growth of 11% and a positive contribution of 4% from acquisitions. Our consumable portfolio contributed 19% growth (15% growth at constant currencies). QIAGEN's instrumentation business showed a very strong growth rate at constant exchange rates of 29%. Net sales for the second quarter 2007 recorded in North America represented approximately 40% of our overall business and recorded a growth rate of 6% while European sales, which represent approximately 47% of our revenues showed a growth rate of approximately 18% at constant exchange rates. Net sales in Asia showed a very strong growth rate of 53% at constant exchange rates driven by strong demand, primarily in China as well as from Singapore and Korea."
Detailed information on the Company's business and financial performance will be presented in the Company's conference call on August 7, 2007 at 9:30am EST. The corresponding presentation slides will be available for download on the Company's website at www.qiagen.com/goto/070807. A webcast of the conference call will be available on the same website at www.qiagen.com/goto/070807.
QIAGEN -- Sample and Assay Technologies Highlights:
* QIAGEN developed and launched 22 new products based on
innovative sample and assay technologies during the second
quarter 2007 for research in the areas including gene expression,
micro RNA, proteomics and molecular diagnostics.
* QIAGEN significantly expanded its portfolio for sample
stabilization and biobanking technologies through strategic
partnerships with Whatman and Biomatrica. The technologies add to
QIAGEN's leading sample stabilization portfolio which includes
products such as PreAnalytix' PAXgene products Whatman's FTA
technologies and Biomatrica's technology target specific needs in
the stabilization and storage of DNA for a wide range of
biological samples and further increase QIAGEN's leadership in
complete solutions for biological sample storage and sample
* QIAGEN closed the acquisition of Digene Corporation, a leader in
molecular diagnostics with a strong leadership position in HPV
(human papillomavirus) molecular diagnostic testing. Digene's
primary product, the Digene(r) HPV Test, screens for the presence
of high-risk types of the virus that have been shown to be the
cause of cervical cancer. The Digene(r) HPV Test is the only test
that is both FDA-approved and CE-marked for HPV testing. This
franchise addresses one of the largest and most rapidly expanding
market segments in women's health and molecular diagnostics.
QIAGEN completed the acquisition through a tender offer and
subsequent merger of Digene with and into a wholly owned
subsidiary of QIAGEN. The transaction was completed in 57 days