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Qiagen's Q4 Revenues Increase 17 Percent

NEW YORK (GenomeWeb News) – Qiagen announced after the close of the market Tuesday that its fourth quarter sales grew 17 percent or 11 percent organically.

For the quarter ended Dec. 31, 2011, the molecular diagnostics firm generated sales of $334.4 million, up from $286 million a year ago, surpassing analyst estimates of $323.3 million.

The acquisitions of Cellestis and Ipsogen provided 6 percentage points to growth, the company said, adding that currency had no effect on sales growth.

For the quarter, Qiagen posted a loss of $790,000, or break-even on an earnings-per-share basis, compared to a profit of $36.3 million, or $.15 per share, a year ago. On an adjusted basis, Qiagen posted a profit of $73.6 million, or $.31 per share — beating Wall estimates of $.28 — and compared to $62 million, or $.26 per share, for Q4 2010.

During the quarter, the company took a restructuring charge of $75 million related to its reorganization announced in November, which includes a reduction of 8 to 10 percent of its global workforce. In 2012 Qiagen expects to take a restructuring charge related to additional restructuring moves.

In a statement, Roland Sackers, CFO of Qiagen, said that the sales growth was paced by "especially strong results" in Molecular Diagnostics, which increased sales 30 percent at constant exchange rates year over year, as well as the timing of an HPV tender at the end of 2011. Applied Testing sales rose 18 percent at constant exchange rates, Pharma sales grew 8 percent, and Academia inched up 3 percent.

Since the launch of the QIAsymphony platform in 2010 through the end of 2011 more than 550 systems have been installed, the company said. Qiagen added that it has a goal of 750 installed systems by the end of 2012.

Molecular Diagnostics and Applied Testing led to a 16-percent increase in sales at constant exchange rates in the Americas, while sales in Asia/Pacific and Japan grew 18 percent.

By product category, consumables and related sales spiked 18 percent year over year at constant exchange rates, and instrument sales rose 11 percent.

"As we maintain our focus on accelerating sales and adjusted earnings growth rates, our solid financial position provides us with significant flexibility to help improve our performance through targeted acquisitions and R&D investments," Sackers said. "The efficiency actions launched in late 2011, which are moving ahead of our initial projections, will further strengthen Qiagen and provide effective and efficient resource allocations to support our strategic initiatives."

Sales for full-year 2011 rose 7 percent year over year to $1.17 billion from $1.09 billion, or 4 percent at constant exchange rates. Organic sales and acquisitions each contributed 2 percentage points, the company said, while favorable currency movements added 4 percentage points.

Profits for the year slid to $96.0 million, or $.40 per share, from $144.3 million, or $.60 per share, in 2010. On an adjusted basis, Qiagen had net income of $234.4 million, or $.98 per share, outpacing Wall Street expectations of $.91.

At constant exchange rates Molecular Diagnostics sales increased 7 percent year over year, while Applied Testing improved 1 percent. Pharma sales increased 4 percent and Academia sales increased 2 percent.

Consumables and related revenues rose 5 percent in 2011 compared to 2010 at constant exchange rates, and instrument sales inched up 1 percent.

Net sales for full-year 2012 are expected to increase 6 percent to 8 percent at constant exchange rates, Qiagen said, while adjusted EPS for the year is anticipated to be in the range of $1.03 to 1.05.

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