Full Press Release Details
* 16% Revenue Growth on Constant Exchange Rates
* 15% Organic Revenue Growth
* 31% Operating Margin, adjusted
* $0.26 Adjusted EPS
VENLO, The Netherlands, Nov. 9, 2009 (GLOBE NEWSWIRE) -- QIAGEN N.V. (Nasdaq:QGEN) (Frankfurt:QIA) today announced the results of operations for the third quarter and the nine-month period ended September 30, 2009.
The reported net sales and the adjusted earnings per share for the third quarter 2009 exceeded the guidance provided by the Company on August 11, 2009.
Third Quarter 2009 Results
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QIAGEN's Third Quarter 2009 (in US$ millions, except per share
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Q3 2009 Q3 2008 Growth
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Net sales 259.7 230.8 13%
Net sales at constant exchange rates 268.7 230.8 16%
Operating income, adjusted 81.8 66.8 22%
Net income, adjusted 53.5 42.4 26%
EPS, adjusted (US$) 0.26 0.21 24%
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For information on the adjusted figures, please refer to the
reconciliation table accompanying this release.
The Company reported that consolidated net sales for its third quarter 2009 increased 13% to $259.7 million from $230.8 million in the same quarter of 2008. Excluding the unfavorable impact from foreign currency exchange rates, net sales for the third quarter 2009 would have increased 16%. The reported operating income for the quarter increased 40% to $53.4 million from $38.2 million in the same quarter of 2008, and net income for the quarter increased 81% to $37.7 million from $20.8 million in the same quarter of 2008. Diluted earnings per share for the third quarter increased 80% to $0.18 in 2009 from $0.10 in 2008.
On an adjusted basis, third quarter operating income increased 22% to $81.8 million in 2009 from $66.8 million in 2008, and third quarter 2009 adjusted net income increased 26% to $53.5 million from $42.4 million in 2008. Adjusted diluted earnings per share increased 24% to $0.26 in the third quarter 2009 from $0.21 in 2008.
Nine-Month Period 2009 Results
For the nine-month period ended September 30, 2009, net sales increased 10% to $720.7 million compared to $655.8 million in the same period of 2008. Operating income as reported for the nine months ended September 30, 2009 increased 30% to $137.3 million from $105.2 million for the same period in 2008. Net income increased 45% to $93.3 million from $64.4 million in 2008, and diluted earnings per share increased 45% to $0.45 in 2009 from $0.31 in 2008.
On an adjusted basis, operating income for the nine-month period ended September 30, 2009 increased 14% to $212.7 million in 2009 from $186.1 million in 2008, and adjusted net income increased 19% to $142.0 million from $119.6 million. Adjusted diluted earnings per share in the nine months ended September 30, 2009 increased 19% to $0.69 per share from $0.58 per share in the same period of 2008.
QIAGEN's third quarter and nine-month period 2009 results include the results of operations from the Company's recent acquisitions, the most significant of which was DxS Ltd., acquired in September 2009, and Corbett Life Science, acquired in July 2008. Reconciliations of reported results determined in accordance with generally accepted accounting principles (GAAP) to adjusted results are included in the tables accompanying this release.
"We are very pleased with our financial performance in the third quarter of 2009," said Peer Schatz, QIAGEN's Chief Executive Officer. "We saw strong growth in revenues, operating margins and adjusted net income -- all of which exceeded our guidance. In addition, our organic revenue growth came in very strong at 15%."
"Revenue growth was highest in sales to customers in molecular diagnostics (approximately 50% of total revenues) followed by sales to customers in pharma (approximately 21% of total revenues), in applied testing (approximately 6% of total revenues) and in academia (approximately 23% of total revenues). Growth of our sales to customers in molecular diagnostics was fueled by strong sales of our 'prevention' products (primarily HPV screening), 'personalized health care' assays (including our KRAS testing solutions) and profiling solutions (including our influenza and other infectious disease assays). Sales to customers in the pharmaceutical and biotech industry conducting clinical development continued to experience solid growth and sales to customers in pharma discovery are improving. The academic research markets continued to perform solidly and we are looking forward to the effect of the stimulus programs which are expected for 2010."
"The markets we serve demonstrated robust demand and solid economic trends. We are very pleased with the strategic momentum we were able to build since the announcement of our second quarter results in August. Since August we have announced the following acquisitions:
* The pending acquisition of SABiosciences will add to QIAGEN a
portfolio of PCR-based, pathway-focused panels that represent
highly efficient solutions for pathway- and disease-biomarker
discovery and development in pharmaceutical and biomedical
research. The efforts associated with the validation of such
biomarkers can at the same time serve as engines for novel content
for molecular diagnostics.
* The acquisition of DxS Ltd. combines two leadership positions to
create a very powerful leader in a transformational area of
healthcare: personalized healthcare.
Both transactions are key elements of our strategy to lead in molecular diagnostics-based prevention, profiling and personalized healthcare. These three pillars of our molecular diagnostics strategy are expected to significantly shape and contribute to future improvements in healthcare and have the potential to provide significant benefits to patients as well as exceptional value for payers, providers, and the pharmaceutical industry."
"QIAGEN experienced a successful third quarter. Reported revenues and adjusted earnings per share exceeded our expectations," said Roland Sackers, QIAGEN's Chief Financial Officer. "Assuming constant exchange rates for both quarters, and adjusted for the divesture of certain assets related to our activities in HLA diagnostics (transplantation diagnostics), revenue growth was 18% and was fueled by a strong organic growth of 15% and a positive contribution of 3% from acquisitions.
Our consumable products portfolio contributed 12% growth (16% at constant exchange rates) and our sales of instrumentation products recorded a growth rate of 18% (23% at constant exchange rates). Net sales in the Americas for the third quarter 2009 represented approximately 51% of our overall business and recorded a growth rate of 12% (15% at constant exchange rates) and European sales, which represent approximately 35% of our revenues, showed a growth rate of 16% (24% at constant exchange rates). Net sales in Asia remained strong, showing a growth rate of 41% (37% at constant exchange rates)."
Increase of Fiscal Year 2009 Guidance Range
Based on the successful first nine months and a positive outlook for the rest of the year, QIAGEN is increasing its expectations for adjusted diluted earnings per share for the fiscal year 2009 from the previous range of $0.86 to $0.90 (based on a weighted average number of fully diluted shares outstanding of approximately 214 million following the equity offering in September 2009) to now between $0.88 and $0.90 based on foreign currency exchange rates as of January 31, 2009.
QIAGEN -- Sample and Assay Technologies Highlights
* In September, QIAGEN acquired DxS Ltd., a developer and
manufacturer of companion diagnostic products (CDx) for
Personalized Healthcare (PHC). With this acquisition, QIAGEN has
added to its own activities in CDx and taken a strong leadership
position in the new era of PHC. The Company believes it offers all
the required elements to help drive and shape this rapidly emerging
trend in healthcare. The acquisition of DxS brings to QIAGEN a
portfolio of molecular diagnostic assays and intellectual property,
as well as a deep pipeline of active or planned companion
diagnostic partnerships in oncology with many of the leading
pharmaceutical companies, including Amgen, Boehringer Ingelheim,
Bristol-Myers Squibb, AstraZeneca and others. These assets
complement QIAGEN's strong existing portfolio of personalized
healthcare diagnostic solutions and are very synergistic with
QIAGEN's sample and assay technologies.
* In November, QIAGEN announced that it is in the process of
acquiring SABiosciences. This transaction will add to QIAGEN's
product offering a leading portfolio of PCR-based, disease and
pathway-based panels that play key roles in biomedical research and
the development of future drugs and diagnostics. The offerings from
SABiosciences can significantly increase QIAGEN's footprint in the
rapidly emerging segment of molecular analysis-based clinical
development in pharmaceutical and biomedical research. In addition,
the use of these panels and the resulting validation of select
biomarkers from these panels by institutions conducting biomedical
and pharmaceutical research has the potential to serve as a unique
engine to support the expansion of the test menu for QIAGEN's
diagnostics platforms -- in particular in the area of personalized
health care but also in prevention and profiling. As such, this
transaction is highly synergistic with QIAGEN's activities in the
fast growing segments of solutions for pharmaceutical development
and molecular diagnostics.
* In September, QIAGEN and Merck & Co., Inc. announced the creation
of a joint program to increase access to HPV vaccination and HPV
DNA testing in some of the poorest areas of the world. This
initiative is the first collaboration of a vaccine manufacturer and
a molecular diagnostics company to address the burden of cervical
cancer with a comprehensive approach. Representing a combined value
of approximately $600 million based on current U.S. prices, the
commitments of QIAGEN and Merck were highlighted among a select
group of corporate initiatives announced at the annual meeting of
the Clinton Global Initiative in September. QIAGEN intends to add
to its existing one million test donation program by providing the
digene HC2 HPV DNA Test (as known as the digene HPV Test) and a new
HPV DNA test that is currently in development for use specifically
in the developing world to screen an additional 500,000 women. In
addition, Merck intends to provide up to five million free doses of
its cervical cancer vaccine, GARDASIL(R) (Human Papillomavirus
Quadrivalent (Types 6, 11, 16 and18) Vaccine Recombinant).
* In September, QIAGEN opened its new Asia headquarters in Zhangjiang
High-Tech Park, Pudong, Shanghai, China. QIAGEN established
Shanghai as the location for its Asia headquarters in 2006.
Resources and employees that were previously spread across
different locations have been brought together at the new site in
Zhangjiang High-Tech Park -- which has emerged as the biotechnology