QIAGEN Reports Strong Second Quarter 2007 Results
15% Constant Currency and 11% Organic Growth
30% Adjusted Net Income Growth
$0.16 Adjusted EPS
QIAGEN N.V. (Nasdaq: QGEN; Frankfurt, Prime Standard: QIA) today announced the results of operations for the quarter ended June 30, 2007.
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.
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).
“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 - $059.
“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.”
QIAGEN N.V., a Netherlands holding company, is the leading provider of sample and assay technologies. Sample technologies are used to isolate and process DNA, RNA, and proteins from biological samples such as blood or tissue. Assay technologies are used to make such isolated biomolecules visible. QIAGEN has developed and markets more than 500 consumable products as well as automated solutions for such consumables. The company provides its products to molecular diagnostics laboratories, academic researchers, pharmaceutical and biotechnology companies, and applied testing customers for purposes such as forensics, animal or food testing, and pharmaceutical process control. QIAGEN's assay technologies include what is considered to be the broadest panel of molecular diagnostic tests available worldwide. This panel includes the only FDA-approved test for human papillomavirus (HPV), the primary cause of cervical cancer. QIAGEN employs more than 2,800 people in more than 30 locations worldwide. Further information about QIAGEN can be found at http://www.qiagen.com/.