Quidel Corp. Reports Strong First Quarter Earnings in Fiscal Year 1996

Strategic Insights -

Quidel Corp., a leading developer and marketer of rapid diagnostic tests, announced a 61 percent increase in net product sales for the first quarter of fiscal year 1996, driven by growth in international sales and the successful integration of Pacific Biotech, a company acquired in the fourth quarter of fiscal 1995. The company's domestic sales also showed a significant increase, led by sales of pregnancy and infectious disease detection products in the doctor's office market and the consumer market.

Key Takeaways:

  • Quidel's net product sales for the first quarter of fiscal year 1996 totaled $8.5 million, a 61 percent increase over the prior year's quarterly sales of $5.3 million.
  • Domestic sales increased 35 percent, driven by growth in the doctor's office market and consumer market sales of pregnancy and ovulation tests.
  • International sales soared 120 percent, primarily driven by growth in Quidel's European subsidiaries.
  • The company's gross profit margin improved significantly to 54 percent from 44 percent a year ago, reflecting the higher margin products under Quidel's brand names and increased factory utilization.
  • Quidel's net income for the first quarter was $17,000, or break-even per share ($.00 per share), compared to a net loss of $1.7 million, or ($.09) per share in the prior year's three-month period.
  • The company's president and CEO, Steven T. Frankel, attributed the success to the successful integration of Pacific Biotech and the rapid consolidation of redundant expenses.
  • Quidel continues to strengthen sales of its product lines on a worldwide basis and is encouraged by the timely FDA review process for its QuickVue(R) Chlamydia Test.

Statistics:

  • Quidel's net product sales for the first quarter totaled $8.5 million.
  • The company's domestic sales increased by 35 percent.
  • International sales increased by 120 percent.
  • The company's gross profit margin improved to 54 percent.
  • Quidel's net income for the first quarter was $17,000.

Sources:

  • QUIDEL Corp. press release, July 31, 1995.
  • QUIDEL Corp. investor relations, July 31, 1995.
  • PR Newswire, July 31, 1995.