Quidel Corporation (Quidel), a in vitro diagnostics company, has reported total revenues of $128.1 million for the full year of 2008, up 8.5%, compared with the total revenues of $118.1 million in the previous year-end. It has posted net income of $18.8 million, or $0.58 per diluted share, for the full year of 2008, compared with a net income of $13.6 million, or $0.41 per diluted share, in the previous year-end.
Full Year 2008 & Recent Highlights:
Global revenues were $128 million, an 8.5% increase year over year
Domestic revenues grew 7% to $109 million
International revenues grew 19% to $19 million
Operating income was $28.6 million, a 47% increase year over year
Operating margin increased by 580 basis points over the prior year to 22% of revenue
Full year 2008 diluted earnings per share of $0.58 increased 41% over the prior year
Repurchased 1.3 million shares of company stock for a total of $19.5 million
Obtained a new $120 million senior secured revolving credit facility
Fourth Quarter 2008 Results
For the fourth quarter of 2008, total revenues were $33.5 million, against $38.0 million for the fourth quarter of 2007. Lower reproductive and women’s health product revenues driven by expected changes in distributor ordering patterns versus the prior year as well as a mild and delayed influenza season accounted for substantially the entire decline in revenues for the quarter. Weakness in US physician office visits along with some distributors choosing to reduce inventory levels in the quarter were additional contributing factors.
Net income for the fourth quarter of 2008 was $6.1 million, or $0.19 per diluted share, against net income of $8.1 million, or $0.25 per diluted share, on a fully diluted basis for the prior-year fourth quarter.
Operating income for the 2008 fourth quarter reached $8.8 million, or 26% of total revenue, compared to operating income of $11.2 million, or 29% of total revenue, for the prior-year fourth quarter.
Results for the Year Ended December 31, 2008
Operating income for 2008 grew 47% to $28.6 million, or 22% of total revenues, compared to operating income of $19.5 million, or 17% of total revenues for 2007. Gross margin improved 200 basis points to 61% in 2008, as Quidel benefited from a more favorable product mix and manufacturing cost savings. Stock-based compensation expense for the year ended 2008 was $2.7 million compared to $4.1 million for 2007.
“In 2008, we achieved a 22% annual growth in global infectious disease revenues and continued our solid leadership in rapid influenza testing,” said Caren Mason, president and chief executive officer of Quidel. “In the face of an economic downturn as well as a late and mild fourth quarter flu season, our company’s fundamentals remain strong. We achieved solid operating leverage and increased our gross and operating margins significantly. This week, we are witnessing an increase in influenza incidence in the U.S. with sources reporting widespread flu appearing in 24 states. Quidel remains very well positioned for expansion and growth with a solid balance sheet and cash available for opportunistic investment.”
Cash and cash equivalents as of December 31, 2008 were $57.9 million, compared to $45.5 million as of December 31, 2007. In 2008, Quidel repurchased about 1.3 million shares of its common stock for $19.5 million under the company’s previously announced share repurchase program. A total of $26.9 million remains available for stock repurchase under this program.