Fourth-quarter and full-year 2009 results announced by Quidel

Quidel CorporationFeb 12 2010

Quidel Corporation (NASDAQ: QDEL), a leading provider of rapid point-of-care diagnostic tests, announced today financial results for the fourth quarter and full year ended December 31, 2009.

“Global demand for our QuickVue® Influenza products was sustained throughout the fourth quarter 2009, driving the near doubling of revenues for the period compared to 2008”

Fourth Quarter 2009 Highlights

• Global revenues grew to $66.6 million, a 99% increase over fourth quarter 2008
• Earnings per diluted share increased to $0.67 from $0.19 in the same period last year
• Infectious disease product sales grew 118% to $57.0 million versus the same period of 2008
• Reproductive and women’s health product revenue grew 36% to $6.1 million over the fourth quarter of 2008
• Launched MicroVue^® C5a Enzyme Immunoassay

Full Year 2009 and Recent Highlights

• Grew total revenues to $164.3 million, a 28% increase year over year
• Earnings per diluted share increased to $1.08 from $0.58, an increase of 86% over the prior year
• Operating margin increased to 32% in 2009 from 22% in the prior year
• Repurchased 3.1 million shares of company stock for a total of $32.8 million
• Signed a definitive agreement to acquire Diagnostic Hybrids, Inc. for approximately $130 million in cash

Fourth Quarter 2009 Results

For the fourth quarter of 2009, total revenues were $66.6 million, compared to $33.5 million for the fourth quarter of 2008, an increase of 99%. International revenues grew 88% to $12.6 million compared to the fourth quarter of 2008. Sales of infectious disease products grew 118% to $57.0 million in the quarter compared to the prior year driven by sales of the company’s QuickVue^® Influenza products.

Operating margin increased to 48% versus 26% in the same quarter last year. Net income for the fourth quarter of 2009 was $20.1 million, or $0.67 per diluted share, compared to $6.1 million, or $0.19 per diluted share, for the fourth quarter of 2008.

“Global demand for our QuickVue^® Influenza products was sustained throughout the fourth quarter 2009, driving the near doubling of revenues for the period compared to 2008,” said Douglas Bryant, president and CEO of Quidel Corporation. “We believe the results for the quarter reflect the impact of the pandemic combined with continued adoption and market penetration as physicians and hospitals continue to recognize the utility in diagnosing patients at the point-of-care with our rapid influenza products.”

Results for the Year Ended December 31, 2009

Total revenues rose 28% to $164.3 million for the year ended December 31, 2009 from $128.1 million for the same period in 2008. Net income for the year ended 2009 was $32.9 million, or $1.08 per diluted share, compared to $18.8 million, or $0.58 per diluted share, for the same period of the prior year. Included in diluted earnings per share for the year ended 2009 is a restructuring charge of $2.0 million or $0.04 per share.

“Quidel achieved record fourth quarter and full year 2009 results by providing high-quality rapid tests for the unprecedented number of patient visits around the world for influenza-like-illness, and by better managing the inventories in our domestic distribution channel, which now more accurately reflect end-user demand. We continue to execute on our plan to grow our business by building our product portfolio by two to three new products per year, investing in our molecular diagnostics capabilities and technologies, and seizing strategic corporate development opportunities such as the previously announced agreement to acquire Diagnostic Hybrids, Inc. All of these actions support our strategy to provide products that meet customers’ needs across the diagnostic continuum,” Bryant continued.

Liquidity

Cash, cash equivalents and marketable securities as of December 31, 2009 were $93.0 million, compared to $57.9 million as of December 31, 2008. In 2009, Quidel repurchased approximately 3.1 million shares of its common stock for $32.8 million under the company’s previously announced share repurchase program. A total of $19.1 million remains available for share repurchases under the current Board authorized program.