|By Marketwired .||
|July 22, 2014 04:21 PM EDT||
SAN DIEGO, CA--(Marketwired - July 22, 2014) - Quidel Corporation (NASDAQ: QDEL), a provider of rapid diagnostic testing solutions, cellular-based virology assays and molecular diagnostic systems, announced today financial results for the second quarter ended June 30, 2014.
Second Quarter 2014 Highlights:
- Total revenues were $31.5 million compared to $29.7 million in the second quarter of 2013.
- Reported GAAP EPS of $(0.20) per share compared to $(0.05) per share in the second quarter of 2013.
- Received 510(k) clearance from the United States Food and Drug Administration (FDA) for Lyra™ molecular PCR assay for the detection of infections from Streptococcus groups A and C or G.
- Received 510(k) clearance from the FDA for Lyra™ molecular PCR assay for the detection of Herpes Simplex Virus 1+2 and Varicella Zoster Virus.
- Received CLIA waiver designation for Sofia® diagnostic test for Respiratory Syncytial Virus (RSV).
Second Quarter 2014 Results
Total revenues for the second quarter of 2014 rose 6% to $31.5 million compared to $29.7 million in the second quarter of 2013. The increase in revenue was due to greater sales of Infectious Disease products in the second quarter of 2014, as well as growth in all other product segments.
Infectious Disease products grew 5% in the quarter as growth was achieved in all major categories. Total influenza product sales in the second quarter increased 17% to $3.8 million, the result of a 49% increase in international influenza orders.
"Despite the weak demand for flu products in the U.S. that persisted well into April, we did realize year-over-year growth across all major categories, thanks in large part to our new products, as well as our international business," said Douglas Bryant, president and CEO of Quidel Corporation. "Our major product development programs are tracking to schedule, and in the quarter, we also received a couple regulatory clearances from the FDA that we believe can provide incremental near-term growth opportunities."
In the quarter, total costs and expenses were $41.5 million as compared to $36.7 million in the second quarter of 2013. Cost of Sales increased $2.2 million, the result of higher sales, unfavorable product mix and higher Sofia depreciation cost. R&D expense increased in the second quarter versus last year due to the added investment in Savanna, somewhat offset by the $0.4 million expense reimbursement from Life Technologies relating to the R&D collaboration agreement signed in March of 2012. The Company also realized $0.9 million in rebates from a key service provider on the Savanna project. Sales and Marketing expense increased by $2.3 million in the second quarter, due to an increase in sales personnel in the second quarter of 2014, as compared to the second quarter of 2013.
Net loss for the second quarter of 2014 was $6.9 million, or $(0.20) per share, compared to net loss of $1.8 million, or $(0.05) per share, for the second quarter of 2013. On a non-GAAP basis, excluding amortization of intangibles, stock compensation expense and certain non-recurring items, net loss for the second quarter of 2014 was $3.4 million, or $(0.10) per share, compared to $1.9 million, or $(0.06) per share, for the same period in 2013.
Results for the Six Months Ended June 30, 2014
Total revenues were $78.2 million for the six-month period ended June 30, 2014, compared to $91.7 million for the same period in 2013. The decrease in revenue was primarily driven by softer demand for Infectious Disease products in the first quarter due to a weaker respiratory disease season in 2014, relative to the same period in 2013.
For the six-month period ended June 30, 2014, total costs and expenses were $90.2 million as compared to $81.3 million over the same period in 2013. Cost of Sales for the six month period ended June 30, 2014 increased by $2.9 million over the same six month period in 2013 mostly due to the mix of products. For the first six months of 2014, Sales and Marketing expense increased by $3.8 million, due to the expansion and training of a larger sales force in 2014 relative to 2013. R&D expense in the first half of 2014 increased by $1.7 million due to the addition of BioHelix and AnDiaTec R&D costs, as well as increased expense for the development of the Savanna platform.
For the six-month period in 2014, net loss was $8.4 million, or $(0.25) per share, compared to net income of $10.6 million, or $0.30 per diluted share, for the same six-month period in 2013. On a non-GAAP basis, excluding amortization of intangibles, stock compensation expense and certain non-recurring items, net loss for the six months ended June 30, 2014 was $0.5 million, or $(0.01) per share, compared to net income of $14.7 million, or $0.42 per diluted share, for the first six months in 2013.
Non-GAAP Financial Information
The Company is providing non-GAAP financial information to exclude the effect of stock-based compensation and amortization of intangibles on earnings (loss) and net earnings (loss) per share as a supplement to its consolidated financial statements, which are presented in accordance with generally accepted accounting principles in the U.S., or GAAP.
Management is providing the adjusted net earnings (loss) and adjusted net earnings (loss) per share information for the periods presented because it believes this enhances the comparison of the Company's financial performance from period-to-period, and to that of its competitors. This press release is not meant to be considered in isolation, or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to the comparable GAAP measures is included in this press release as part of the attached financial tables.
Conference Call Information
Quidel management will host a conference call to discuss the second quarter results as well as other business matters today beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). During the conference call, management may answer questions concerning business and financial developments and trends. Quidel's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.
To participate in the live call by telephone from the U.S., dial 866-510-0707, or from outside the U.S. dial 617-597-5376, and enter the pass code 822-717-86.
A live webcast of the call can be accessed at http://www.quidel.com, and the Web site replay will be available for 14 days. The telephone replay will be available for 48 hours beginning at 9:00 p.m. Eastern Time (6:00 p.m. Pacific Time) today by dialing 888-286-8010 from the U.S., or 617-801-6888 for international callers, and entering pass code 748-364-45.
About Quidel Corporation
Quidel Corporation serves to enhance the health and wellbeing of people around the globe through the development of diagnostic solutions that can lead to improved patient outcomes and provide economic benefits to the healthcare system. Marketed under the QuickVue®, D3® Direct Detection and Thyretain® leading brand names, as well as under the new Sofia®, AmpliVue® and Lyra™ brands, Quidel's products aid in the detection and diagnosis of many critical diseases and conditions, including, among others, influenza, respiratory syncytial virus, Strep A, herpes, pregnancy, thyroid disease and fecal occult blood. Quidel's research and development engine is also developing a continuum of diagnostic solutions from advanced lateral-flow and direct fluorescent antibody to molecular diagnostic tests to further improve the quality of healthcare in physicians' offices and hospital and reference laboratories. For more information about Quidel's comprehensive product portfolio, visit quidel.com.
This press release contains forward-looking statements within the meaning of the federal securities laws that involve material risks, assumptions and uncertainties. Many possible events or factors could affect our future financial results and performance, such that our actual results and performance may differ materially from those that may be described or implied in the forward-looking statements. As such, no forward-looking statement can be guaranteed. Differences in actual results and performance may arise as a result of a number of factors including, without limitation, fluctuations in our operating results resulting from seasonality; the timing of the onset, length and severity of cold and flu seasons; government and media attention focused on influenza and the related potential impact on humans from novel influenza viruses; adverse changes in competitive conditions in domestic and international markets; the reimbursement system currently in place and future changes to that system; changes in economic conditions in our domestic and international markets; changes in sales levels as it relates to the absorption of our fixed costs; lower than anticipated market penetration of our products; the quantity of our product in our distributors' inventory or distribution channels and changes in the buying patterns of our distributors; our development of new technologies, products and markets; our development and protection of intellectual property; our reliance on a limited number of key distributors; our reliance on sales of our influenza diagnostics tests; our ability to manage our growth strategy, including our ability to integrate companies or technologies we have acquired or may acquire; intellectual property risks, including but not limited to, infringement litigation; limitations and covenants in our senior credit facility; that we may incur significant additional indebtedness; our need for additional funds to finance our operating needs; volatility and disruption in the global capital and credit markets; acceptance of our products among physicians and other healthcare providers; competition with other providers of POC diagnostic products; changes in government policies; adverse actions or delays in product reviews by the U.S. Food and Drug Administration (the "FDA"); compliance with other government regulations, such as safe working conditions, manufacturing practices, environmental protection, fire hazard and disposal of hazardous substances; third-party reimbursement policies; our ability to meet demand for our products; interruptions in our supply of raw materials; product defects; business risks not covered by insurance; the loss of key personnel; international risks, including but not limited to, compliance with product registration requirements, exposure to currency exchange fluctuations, longer payment cycles, lower selling prices and greater difficulty in collecting accounts receivable, reduced protection of intellectual property rights, political and economic instability, taxes, and diversion of lower priced international products into US markets; our failure to maintain adequate internal control over financial reporting; volatility in our stock price; dilution resulting from future sales of our equity; and provisions in our charter documents and Delaware law that might delay stockholder actions with respect to business combinations or the election of directors. Forward-looking statements typically are identified by the use of terms such as "may," "will," "should," "might," "expect," "anticipate," "estimate," and similar words, although some forward-looking statements are expressed differently. The risks described under "Risk Factors" in reports and registration statements that we file with the Securities and Exchange Commission (SEC) from time to time should be carefully considered. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date of this press release. We undertake no obligation to publicly release the results of any revision or update of the forward-looking statements, except as required by law.
QUIDEL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; unaudited) Three months ended June 30, 2014 2013 --------- --------- Total revenues $ 31,488 $ 29,706 Cost of sales (excludes amortization of intangible assets from acquired businesses and technology) 15,902 13,671 Research and development 8,127 7,945 Sales and marketing 9,393 7,120 General and administrative 5,843 5,901 Amortization of intangible assets from acquired businesses and technology 2,208 2,022 --------- --------- Total costs and expenses 41,473 36,659 --------- --------- Operating loss (9,985) (6,953) Interest expense, net (372) (359) --------- --------- Loss before income tax benefit (10,357) (7,312) Benefit for income taxes (3,449) (5,557) --------- --------- Net loss $ (6,908) $ (1,755) ========= ========= Basic and diluted (loss) earnings per share $ (0.20) $ (0.05) Weighted shares used in basic and diluted per share calculation 34,347 33,802 Gross profit as a % of total revenues 49% 54% Research and development as a % of total revenues 26% 27% Sales and marketing as a % of total revenues 30% 24% General and administrative as a % of total revenues 19% 20% Condensed balance sheet data (in thousands): 6/30/14 12/31/13 --------- --------- Cash, cash equivalents and restricted cash $ 18,075 $ 9,357 Accounts receivable, net 17,233 29,928 Inventories 23,525 27,639 Total assets 258,514 271,485 Long term debt 4,880 5,126 Stockholders' equity 219,846 223,779
QUIDEL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data; unaudited) Six months ended June 30, 2014 2013 --------- --------- Total revenues $ 78,161 $ 91,701 Cost of sales (excludes amortization of intangible assets from acquired businesses and technology) 36,149 33,218 Research and development 17,208 15,469 Sales and marketing 19,320 15,562 General and administrative 13,070 13,264 Amortization of intangible assets from acquired businesses and technology 4,416 3,786 Facility restructuring charge - - --------- --------- Total costs and expenses 90,163 81,299 --------- --------- Operating (loss) income (12,002) 10,402 Interest expense, net (731) (723) --------- --------- (Loss) Income before income tax benefit (12,733) 9,679 Benefit for income taxes (4,313) (933) --------- --------- Net (loss) income (8,420) 10,612 ========= ========= Basic (loss) earnings per share (0.25) 0.31 Diluted (loss) earnings per share (0.25) 0.30 Weighted shares used in basic per share calculation 34,271 33,658 Weighted shares used in diluted per share calculation 34,271 34,716 Gross profit as a % of total revenues 54% 64% Research and development as a % of total revenues 22% 17% Sales and marketing as a % of total revenues 25% 17% General and administrative as a % of total revenues 17% 14%
QUIDEL CORPORATION Reconciliation of Non-GAAP Financial Information (In thousands, except per share data; unaudited) Three months ended Six months ended June 30, June 30, 2014 2013 2014 2013 --------- --------- --------- --------- (unaudited) (unaudited) Net (loss) income - GAAP $ (6,908) $ (1,755) $ (8,420) $ 10,612 Add: Non-cash stock compensation expense 1,240 1,887 3,479 4,028 Amortization of intangibles 3,764 3,143 8,516 8,117 Facility restructuring charge - - - - Income tax impact of 2012 research and development tax credit - - - (510) Income tax impact of reversal of tax contingency reserve - (3,458) - (3,458) Income tax impact of non-cash stock compensation expense and amortization of intangibles (1,522) (1,710) (4,066) (4,129) --------- --------- --------- --------- Adjusted net (loss) income $ (3,426) $ (1,893) $ (491) $ 14,660 ========= ========= ========= ========= Basic earnings per share: Adjusted net (loss) earnings $ (0.10) $ (0.06) $ (0.01) $ 0.43 Net (loss) earnings - GAAP $ (0.20) $ (0.05) $ (0.25) $ 0.31 Diluted earnings per share: Adjusted net (loss) earnings $ (0.10) $ (0.06) $ (0.01) $ 0.42 Net (loss) earnings - GAAP $ (0.20) $ (0.05) $ (0.25) $ 0.30
Chief Financial Officer
Media and Investors Contact:
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 07:00 AM EST Reads: 452
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Dec. 3, 2016 06:30 AM EST Reads: 5,975
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 3, 2016 05:45 AM EST Reads: 6,906
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
Dec. 3, 2016 05:30 AM EST Reads: 1,195
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, shared the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Dec. 3, 2016 04:15 AM EST Reads: 3,415
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 3, 2016 04:15 AM EST Reads: 1,707
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
Dec. 3, 2016 02:30 AM EST Reads: 1,519
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 3, 2016 02:15 AM EST Reads: 1,489
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Dec. 3, 2016 02:15 AM EST Reads: 736
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, showed how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningful f...
Dec. 3, 2016 01:45 AM EST Reads: 4,532
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 01:45 AM EST Reads: 766
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 3, 2016 01:15 AM EST Reads: 854
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 3, 2016 12:30 AM EST Reads: 1,519
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
Dec. 3, 2016 12:15 AM EST Reads: 1,752
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 2, 2016 11:15 PM EST Reads: 904