Quidel Plunges on Warning

Diagnostic test maker Quidel ( QDEL) warned Friday of a steep second-quarter sales shortfall and suspended 2004 guidance.

The San Diego company forecast a second-quarter loss of 12 cents a share on revenue of $14 million. Analysts had projected a 2-cent profit on sales of $20 million. The company cited intellectual property litigation and a failure to find a distributor for a flu test.

"It is difficult to predict the severity or timing of the cold and flu season, which also could have a material impact, positive or negative, on the company's revenues and earnings each year," CEO Wayne Kay said. "As a result of all of these factors, we have suspended financial guidance for the balance of the year and currently do not expect to provide revised guidance in the near term."

Quidel shares slid $1.50, or 29%, to $3.73.

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