Previous Statements by QDEL
» Quidel Corporation Q4 2009 Earnings Call Transcript
» Quidel Corporation Q3 Earnings Call Transcript
» Quidel Corporation Q2 2009 Earnings Call Transcript
Total global revenues for the quarter were $25 million, an increase of 2% compared to the second quarter of 2009. There are several factors that affect revenue comparison for the two quarters. In 2009 there were $11.3 million of pandemic-related influenza revenues offset by weak strep and pregnancy shipments to US distributors as they lowered inventory levels of these products. In 2010 revenues were favorably impacted by $10.1 million from the acquisition of DHI, partially offset by a weak respiratory season and the timing of orders for our veterinary products.Domestic revenues for Quidel were $21.2 million, an increase of 28% period over period, while international revenues came in at $3.8 million, a decrease of 53% from the second quarter of 2009.International revenues accounted for 15% of total revenues in the second quarter of 2010. Global infectious disease revenues were$13.9 million versus $16.1 million in the second quarter of last year, a decrease of 14% driven by an absence of influenza sales partially offset by the additional revenues from DHI’s respiratory, urology and herpes product lines. Strep sales grew 20% in the quarter largely due to more normalized distributor inventory levels in 2010. Global revenues of our reproductive and women’s health category increased 37% in the second quarter of 2010 to $8.4 million. This increase was driven primarily by the inclusion of DHI’s Thyretain product line as well as robust growth in our other, immune and complement product lines. Pregnancy revenues also contributed to the growth in this category as a result of more normalized distributor inventory levels in 2010. Gross margins in the second quarter of 2010 decreased to 50% as compared to 59% in the prior year. The decline in gross margin was driven by the following: first an unfavorable product mix shift due to the significant flu sales during 2009 associated with the pandemic, lower unit production volumes and related leverage of our manufacturing facility in 2010 and finally by the final $400,000 of amortization at the inventory per value write up associated with the DHI acquisition.
These unfavorable factors were partially off set by the addition of DHI’s gross margins which were higher than our Pregnancy and Strep products.Operating expenses were $19.9 million compared to $13.5 million in the prior year. This includes $5.3 million of DHI’s operating expenses in the current period as well as $1.5 million of intangible asset amortization associated with the DHI acquisition. Research and development costs were$6.3 million in line with our expectations. On a GAAP basis the loss per share in the quarter was $0.09 compared to earnings of $0.02 per diluted share in the same period of 2009. Those familiar with our company know that in a normal year Quidel historically reports a loss in its second quarter in the range of $0.05 to $0.12 per share so this quarter is not a typical. On a pro-forma basis our loss per share was $0.03 per share compared to earnings per diluted share of $0.04 in the same quarter in 2009. Stock-based compensation expense was $1.4 million for the quarter versus $0.9 million for the same period in 2009. During the second quarter Quidel repurchased approximately 400,000 of its common stock at an average price of $11.30 under the company’s previously announced share repurchase program. A total of $10.3 million remains available for stock repurchase under the current board-authorized program. Read the rest of this transcript for free on seekingalpha.com