Highlights:
Earnings per diluted share in the third quarter of 2009 increased to $0.50 from $0.15 per diluted share in the same period of the prior year, an increase of 233%.
Expanded gross margin in the third quarter of 2009 to 69% compared to 62% in the third quarter of 2008.
Income from operations in the third quarter of 2009 was $24.3 million versus $7.4 million in the same period in 2008, an increase of 230%.
Operating margin increased to 43% in the third quarter of 2009 from 23% in the same period of the prior year.
Entered into a joint development and commercialization agreement with BioHelix Corporation.
Third Quarter 2009 Results
Total International revenues grew 221% to $10.6 million versus the third quarter of 2008. Sales of infectious disease products grew 91% to $47.0 million in the quarter compared to the prior year led by sales of the Company’s QuickVue® Influenza products. The Company experienced an increase in the number of new influenza test users and a high volume of reorders by physician office labs and hospitals in response to unprecedented levels of patient visits for influenza-like-illness. Reproductive and women’s health products grew 38% to $5.5 million from the prior year.
“Our record quarterly results during this last period were fueled by exceptional global demand for our QuickVue influenza tests as clinicians in the physician office and hospital settings continue to recognize the utility of rapid influenza testing,” said Douglas Bryant, president and chief executive officer of Quidel. “Just as important, an increasing number of physicians and healthcare professionals around the world are adopting influenza testing as they recognize the important role rapid influenza testing plays in aiding in the management and diagnosis of influenza-like-illness.” Bryant continued, “In addition, sales of our strep and pregnancy product lines increased in the third quarter versus the prior year and our shipments are now tracking more consistently with end user demand.”
Nine Months Ended September 30, 2009
Total revenues increased 3% to $97.7 million for the nine-month period ended September 30, 2009 from $94.6 million for the same period in 2008. For the nine-month period in 2009, diluted earnings per share were $0.42 compared to $0.39 for the same period of the prior year. Included in diluted earnings per share for the nine-month period in 2009 is a restructuring charge of $2.0 million or $0.04 per share.
Liquidity
Cash, cash equivalents and marketable securities as of September 30, 2009 were $65.3 million, compared to $57.9 million as of December 31, 2008. Year-to-date, Quidel repurchased approximately 2.1 million shares of its common stock for $18.9 million under the Company’s previously announced share repurchase program. A total of $8.1 million remains available for share repurchases under the current Board authorized program.
