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Qiagen's Q2 Sales Rise 9 Percent

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Qiagen reported after the close of the market Monday that its second-quarter net sales rose 9 percent with equal growth from its portfolio of consumables and instruments.

The German firm registered net sales of $262.7 million for the three-month period ended June 30, compared to $240.2 million for the second quarter of 2009. It said that its consumables and instrument products both contributed 10 percent revenue growth, and the negative effects of currency translation trimmed 2 percent off its top line.

Though the firm met its own sales guidance for the quarter it fell short of analysts' consensus expectation of $275.3 million.

"Our markets remain stable across our customer segments and show promising growth opportunities," Qiagen CEO Peer Schatz said in a statement.

"Molecular diagnostics remains our strongest revenue driver even when considering the impacts related to swine flu testing in 2009," said Schatz. "The market for our profiling assays and solutions remains very solid. The market for our prevention assays (primarily HPV screening), continues to benefit from our market adoption initiatives in the United States despite what is believed to be a temporary extension of doctor visit intervals. Anticipated future healthcare policies and reimbursement schemes worldwide promise a healthy outlook for this market segment."

Molecular diagnostic products, which accounted for 47 percent of total sales for the quarter, grew 12 percent year over year. The firm's applied testing sales were up 15 percent, pharma sales grew 11 percent, and sales to academia were up 7 percent.

Qiagen saw particularly strong growth in Europe, which accounts for 38 percent of its business, with 26 percent revenue growth. Sales in America, which is 49 percent of total sales, were up 10 percent, while Asia was up 19 percent.

Schatz noted during a conference call that products launched within the previous 12 months accounted for 5 percent of total sales for Q2.

Qiagen's net income for the quarter was $38.5 million, or $.16 per share, up from $30.9 million, or $.15 per share, for Q2 2009. On an adjusted basis, Qiagen's EPS was $.22 per share, beating the Wall Street estimate of $.21.

The firm's R&D spending increased around 18 percent to $29.4 million from $25 million. Its SG&A, which includes integration costs, increased 13 percent to $94.7 million versus $83.6 million. Acquisition-related intangible amortization charges for the quarter were $5.8 million, up from $4 million for Q2 2009.

Qiagen finished the quarter with $844.2 million in cash and cash equivalents, and $74 million in short-term investments.

The firm reiterated earlier guidance for full-year 2010. It expects revenues to be between $1.12 billion and $1.17 billion, and adjusted EPS of between $.90 and $.96.

In early Wednesday trade on the Nasdaq, shares of Qiagen were down 5 percent at $18.59.

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