Quidel Reports Second Quarter 2021 Financial Results
Quidel Corporation (NASDAQ: QDEL) reported a 12% decline in total revenue for Q2 2021, falling to $176.6 million compared to $201.8 million in Q2 2020. COVID-19 product sales decreased to $83.4 million, down from $109.0 million, while influenza product sales plummeted to $1.6 million. GAAP EPS was $0.45, significantly lower than $1.55 in the prior year. Despite challenges, core business revenue grew 24% to $91.5 million, driven by strong performance in Cardiometabolic Immunoassays. The Sofia® SARS Antigen test received Emergency Use Authorization for screening, supporting potential growth.
- Core business revenue grew 24% to $91.5 million.
- Cardiometabolic Immunoassay revenue increased 32% to $71.7 million.
- Sofia® SARS Antigen test received Emergency Use Authorization for screening use.
- Savanna® multiplex molecular analyzer received CE Mark for the European market.
- Total revenue decreased 12% to $176.6 million.
- Sales of COVID-19 products fell to $83.4 million from $109.0 million.
- Influenza product sales dropped to $1.6 million from $18.7 million.
- GAAP EPS declined to $0.45 from $1.55 year-over-year.
Quidel Corporation (NASDAQ: QDEL), a provider of rapid diagnostic testing solutions, cellular-based virology assays and molecular diagnostic systems, announced today financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Highlights
-
Total revenue decreased
12% to$176.6 million , from$201.8 million in the second quarter of 2020. -
Total sales of COVID-19 products were
$83.4 million , as compared to$109.0 million in the second quarter of 2020. -
Total sales of Influenza products were
$1.6 million , as compared to$18.7 million in the second quarter of 2020. -
Reported GAAP EPS of
$0.45 per diluted share in the second quarter of 2021, as compared to$1.55 per diluted share in the second quarter of 2020. -
Reported non-GAAP EPS of
$0.75 per diluted share in the second quarter of 2021, as compared to$1.86 per diluted share in the second quarter of 2020. - Sofia® SARS Antigen test received Emergency Use Authorization (EUA) for screening use with serial testing.
- Received amended EUA for new Sofia® Q Rapid Antigen test device.
Second Quarter 2021 Results
Total revenue for the second quarter of 2021 was
Rapid Immunoassay product revenue decreased by
“During the second quarter of 2021, we made great progress advancing our product portfolio, while continuing to position Quidel for long-term growth. In the quarter, we delivered solid
“We also made great strides in our R&D and Clinical efforts during the quarter, which set us up to execute on our multi-faceted growth strategy. Although the landscape of COVID testing continues to evolve daily, the highly transmissible COVID-19 Delta variant is starting to drive demand in both the professional and OTC segments,” continued Mr. Bryant. “Further, the recent EUA for our miniaturized Sofia® Q device will make access to our Sofia® tests more affordable for professional and point-of-care customers. Longer-term, it could create a retail pathway for our full portfolio of Sofia® tests for influenza, RSV, Strep and other conditions. This positions us favorably to address the coming flu and respiratory disease seasons.”
“Looking ahead, we believe our Savanna® multiplex molecular analyzer will be our next flagship product. We recently received CE Mark for the European market. When approved in the U.S., Savanna® will enable professional customers to analyze up to 12 pathogens or targets, plus controls, in a single assay run in less than 25 minutes,” Mr. Bryant added. “While the environment remains incredibly fluid, we have made tremendous progress to date, and are very pleased with both the performance of our Quidel team and the outlook for the company.”
Gross profit decreased to
In the second quarter of 2021, the Company recorded an income tax expense of
Net income for the second quarter was
Results for the Six Months Ended June 30, 2021
Total revenue for the six months ended June 30, 2021 was
Rapid Immunoassay product revenue increased by
Gross profit increased to
For the six months ended June 30, 2021, the Company recorded an income tax expense of
Net income for the six months ended June 30, 2021 was
Non-GAAP Financial Information
The Company is providing non-GAAP financial information to exclude the effect of stock-based compensation, amortization of intangibles, non-cash interest expense, foreign exchange gains and losses and certain non-recurring items on net income and earnings per share as a supplement to its consolidated financial statements, which are presented in accordance with generally accepted accounting principles in the U.S., or GAAP.
Management is providing the adjusted gross profit, adjusted operating income, adjusted net income, adjusted net earnings per share, and constant currency revenue information for the periods presented because it believes this enhances the comparison of the Company’s financial performance from period-to-period, and to that of its competitors. Constant currency revenue is calculated by translating current period revenues using prior period exchange rates, net of any hedging effect recognized in the current period. Constant currency revenue growth (expressed as a percentage) is calculated by determining the change in current period constant currency revenues over prior period revenues. This press release is not meant to be considered in isolation, or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures to the comparable GAAP measures is included in this press release as part of the attached financial tables.
Conference Call Information
Quidel management will host a conference call to discuss the second quarter 2021 results as well as other business matters today beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). During the conference call, management may answer questions concerning business and financial developments and trends. Quidel’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.
To join the live webcast, participants may click the following link directly: https://event.on24.com/wcc/r/3196433/B5D63E95E34F79DE5D13425B35E75377, or access the event via the Investor Relations section of the Quidel website (http://ir.quidel.com).
The website replay will be available for 1 year. The telephone replay will be available for 14 days beginning at 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time) on August 5th, 2021 by dialing 929-458-6194 from the U.S., or by dialing +44-204-525-0658 for international callers, and entering pass code 080478.
About Quidel Corporation
Quidel Corporation (Nasdaq: QDEL) is a leading manufacturer of diagnostic solutions at the point of care, delivering a continuum of rapid testing technologies that further improve the quality of health care throughout the globe. An innovator for over 40 years in the medical device industry, Quidel pioneered the first FDA-cleared point-of-care test for influenza in 1999 and was the first to market a rapid SARS-CoV-2 antigen test in the U.S. Under trusted brand names Sofia®, Solana®, Lyra®, Triage® and QuickVue®, Quidel’s comprehensive product portfolio includes tests for a wide range of infectious diseases, cardiac and autoimmune biomarkers, as well as a host of products to detect COVID-19. With products made in America, Quidel’s mission is to provide patients with immediate and frequent access to highly accurate, affordable testing for the good of our families, our communities and the world. For more information about Quidel, visit quidel.com.
View our story told by our people at www.quidel.com/ourstory
Forward-looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws that involve material risks, assumptions and uncertainties. Many possible events or factors could affect our future results and performance, such that our actual results and performance may differ materially from those that may be described or implied in the forward-looking statements. As such, no forward-looking statement can be guaranteed. Differences in actual results and performance may arise as a result of a number of factors including, without limitation: the impact of the novel virus (COVID-19) global pandemic; competition; our development of new technologies, products and markets; our reliance on sales of our influenza and COVID-19 diagnostic tests; our reliance on a limited number of key distributors; the financial soundness of our customers and suppliers; acceptance of our products among physicians and other healthcare providers and other targeted customers; the reimbursement system currently in place and future changes to that system; our ability to meet demand for our products; interruptions or shortages in our supply of raw materials and other components; costs and disruptions from failures in our information technology and storage systems and our exposure to data corruption, cyber-based attacks, security breaches and privacy violations; international risks, including but not limited to, compliance with product registration requirements, compliance with legal requirements, tariffs, exposure to currency exchange fluctuations and foreign currency exchange risk, longer payment cycles, lower selling prices and greater difficulty in collecting accounts receivable, reduced protection of intellectual property rights, social, political and economic instability, increased financial accounting and reporting burdens and complexities, taxes, and diversion of lower priced international products into U.S. market; worldwide political and social uncertainty, including tariffs, trade wars or social tensions; our development, acquisition and protection of proprietary technology rights; intellectual property risks, including but not limited to, infringement litigation, loss of our Emergency Use Authorization from the U.S. Food and Drug Administration (the “FDA”) for our COVID-19 products; failures or delays in receipt of new product reviews or related to currently-marketed products by FDA or other regulatory authorities or loss of any previously received regulatory approvals, clearances or authorizations or other adverse actions by regulatory authorities; funding and compliance risks relating to government contracts, including the ability to meet key deliverables and milestones under our NIH RADx-ATP contract; product defects; compliance with government regulations relating to the handling, storage and disposal of hazardous substances; our ability to identify and successfully acquire and integrate potential acquisition targets; risks relating to our acquisition of Alere’s Triage and BNP Businesses; our need for additional funds to finance our capital or operating needs; the level of our indebtedness and deferred payment obligations; competition for and loss of management and key personnel; our exposure to claims and litigation that could result in significant expenses and could ultimately result in an unfavorable outcome for us; business risks not covered by insurance; changes in tax rates and exposure to additional tax liabilities or assessments; and provisions in our charter documents and Delaware law that might delay or impede stockholder actions with respect to business combinations or similar transactions. Forward-looking statements typically are identified by the use of terms such as “may,” “will,” “should,” “might,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “goal,” “project,” “strategy,” “future,” and similar words, although some forward-looking statements are expressed differently. The risks described in reports and registration statements that we file with the Securities and Exchange Commission from time to time, should be carefully considered, including those discussed in Item 1A, “Risk Factors” and elsewhere in our Annual Report on Form 10 K for the year ended December 31, 2020 and in our subsequent Quarterly Reports on Form 10 Q. You are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date of this press release. Except as required by law, we undertake no obligation to publicly release any revision or update of these forward-looking statements, whether as a result of new information, future events or otherwise.
QUIDEL CORPORATION (In thousands, except per share data; unaudited) |
|||||||||
|
|||||||||
|
Three months ended June 30, |
||||||||
Consolidated Statements of Operations: |
2021 |
|
|
2020 |
|
||||
Total revenues |
$ |
176,610 |
|
|
|
$ |
201,754 |
|
|
Cost of sales |
70,424 |
|
|
|
53,003 |
|
|
||
Gross profit |
106,186 |
|
|
|
148,751 |
|
|
||
Research and development |
22,614 |
|
|
|
20,970 |
|
|
||
Sales and marketing |
38,100 |
|
|
|
27,567 |
|
|
||
General and administrative |
21,138 |
|
|
|
15,679 |
|
|
||
Acquisition and integration costs |
1,028 |
|
|
|
872 |
|
|
||
Total operating expenses |
82,880 |
|
|
|
65,088 |
|
|
||
Operating income |
23,306 |
|
|
|
83,663 |
|
|
||
Interest and other expense, net |
(1,623 |
) |
|
|
(3,467 |
) |
|
||
Income before income taxes |
21,683 |
|
|
|
80,196 |
|
|
||
Provision for income taxes |
2,610 |
|
|
|
12,544 |
|
|
||
Net income |
$ |
19,073 |
|
|
|
$ |
67,652 |
|
|
|
|
|
|
||||||
Basic earnings per share |
$ |
0.46 |
|
|
|
$ |
1.61 |
|
|
Diluted earnings per share |
$ |
0.45 |
|
|
|
$ |
1.55 |
|
|
Shares used in basic per share calculation |
41,691 |
|
|
|
42,117 |
|
|
||
Shares used in diluted per share calculation |
42,374 |
|
|
|
43,746 |
|
|
||
|
|
|
|
||||||
Gross profit as a % of total revenues |
60 |
|
% |
|
74 |
|
% |
||
Research and development as a % of total revenues |
13 |
|
% |
|
10 |
|
% |
||
Sales and marketing as a % of total revenues |
22 |
|
% |
|
14 |
|
% |
||
General and administrative as a % of total revenues |
12 |
|
% |
|
8 |
|
% |
||
|
|
|
|
||||||
Consolidated net revenues by product category are as follows: |
|
|
|
||||||
Rapid Immunoassay |
$ |
60,070 |
|
|
|
$ |
80,606 |
|
|
Cardiometabolic Immunoassay |
71,666 |
|
|
|
54,191 |
|
|
||
Molecular Diagnostic Solutions |
34,456 |
|
|
|
55,177 |
|
|
||
Specialized Diagnostic Solutions |
10,418 |
|
|
|
11,780 |
|
|
||
Total revenues |
$ |
176,610 |
|
|
|
$ |
201,754 |
|
|
|
|
|
|
||||||
Condensed balance sheet data: |
6/30/2021 |
|
12/31/2020 |
||||||
Cash and cash equivalents |
$ |
593,224 |
|
|
|
$ |
489,941 |
|
|
Accounts receivable, net |
$ |
46,216 |
|
|
|
$ |
497,688 |
|
|
Inventories |
$ |
218,506 |
|
|
|
$ |
113,798 |
|
|
Total assets |
$ |
1,807,652 |
|
|
|
$ |
1,871,164 |
|
|
Short-term debt |
$ |
269 |
|
|
|
$ |
238 |
|
|
Long-term debt |
$ |
4,051 |
|
|
|
$ |
4,100 |
|
|
Stockholders’ equity |
$ |
1,411,079 |
|
|
|
$ |
1,332,703 |
|
|
QUIDEL CORPORATION (In thousands, except per share data; unaudited) |
|||||||||
|
Six months ended June 30, |
||||||||
Consolidated Statements of Operations: |
2021 |
|
|
2020 |
|
||||
Total revenues |
$ |
551,948 |
|
|
|
$ |
376,407 |
|
|
Cost of sales |
143,803 |
|
|
|
112,665 |
|
|
||
Gross profit |
408,145 |
|
|
|
263,742 |
|
|
||
Research and development |
45,918 |
|
|
|
37,349 |
|
|
||
Sales and marketing |
72,333 |
|
|
|
58,305 |
|
|
||
General and administrative |
40,645 |
|
|
|
30,011 |
|
|
||
Acquisition and integration costs |
1,754 |
|
|
|
2,786 |
|
|
||
Total operating expenses |
160,650 |
|
|
|
128,451 |
|
|
||
Operating income |
247,495 |
|
|
|
135,291 |
|
|
||
Interest and other expense, net |
(4,005 |
) |
|
|
(6,274 |
) |
|
||
Income before income taxes |
243,490 |
|
|
|
129,017 |
|
|
||
Provision for income taxes |
46,333 |
|
|
|
21,128 |
|
|
||
Net income |
$ |
197,157 |
|
|
|
$ |
107,889 |
|
|
|
|
|
|
||||||
Basic earnings per share |
$ |
4.74 |
|
|
|
$ |
2.56 |
|
|
Diluted earnings per share |
$ |
4.64 |
|
|
|
$ |
2.48 |
|
|
Shares used in basic per share calculation |
41,622 |
|
|
|
42,086 |
|
|
||
Shares used in diluted per share calculation |
42,475 |
|
|
|
43,574 |
|
|
||
|
|
|
|
||||||
Gross profit as a % of total revenues |
74 |
|
% |
|
70 |
|
% |
||
Research and development as a % of total revenues |
8 |
|
% |
|
10 |
|
% |
||
Sales and marketing as a % of total revenues |
13 |
|
% |
|
15 |
|
% |
||
General and administrative as a % of total revenues |
7 |
|
% |
|
8 |
|
% |
||
|
|
|
|
||||||
Consolidated net revenues by product category are as follows: |
|
|
|
||||||
Rapid Immunoassay |
$ |
297,740 |
|
|
|
$ |
176,536 |
|
|
Cardiometabolic Immunoassay |
138,218 |
|
|
|
108,092 |
|
|
||
Molecular Diagnostic Solutions |
94,719 |
|
|
|
63,540 |
|
|
||
Specialized Diagnostic Solutions |
21,271 |
|
|
|
28,239 |
|
|
||
Total revenues |
$ |
551,948 |
|
|
|
$ |
376,407 |
|
|
QUIDEL CORPORATION Reconciliation of Non-GAAP Financial Information (In thousands, except per share data; unaudited) |
|||||||||||||||||||||||||||||||||
|
Three months ended June 30, |
||||||||||||||||||||||||||||||||
|
Gross Profit |
|
Operating Income |
|
Net Income |
|
Diluted EPS |
||||||||||||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
|
2021 |
|
2020 |
||||||||||||||||
GAAP Financial Results |
$ |
106,186 |
|
|
$ |
148,751 |
|
|
$ |
23,306 |
|
|
$ |
83,663 |
|
|
$ |
19,073 |
|
|
|
$ |
67,652 |
|
|
|
|
|
|
||||
Interest expense on Convertible Senior Notes, net of tax |
|
|
|
|
|
|
|
|
— |
|
|
|
179 |
|
|
|
|
|
|
||||||||||||||
Net income used for diluted earnings per share, if-converted method |
|
|
|
|
|
|
|
|
19,073 |
|
|
|
67,831 |
|
|
|
$ |
0.45 |
|
|
$ |
1.55 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-cash stock compensation expense |
643 |
|
|
435 |
|
|
5,846 |
|
|
5,130 |
|
|
5,846 |
|
|
|
5,130 |
|
|
|
|
|
|
||||||||||
Amortization of intangibles |
2,073 |
|
|
1,905 |
|
|
8,005 |
|
|
7,041 |
|
|
8,005 |
|
|
|
7,041 |
|
|
|
|
|
|
||||||||||
Amortization of debt issuance costs on credit facility |
|
|
|
|
|
|
|
|
101 |
|
|
|
101 |
|
|
|
|
|
|
||||||||||||||
Non-cash interest expense for deferred consideration |
|
|
|
|
|
|
|
|
1,107 |
|
|
|
1,717 |
|
|
|
|
|
|
||||||||||||||
Change in fair value of acquisition contingencies |
|
|
|
|
101 |
|
|
848 |
|
|
101 |
|
|
|
848 |
|
|
|
|
|
|
||||||||||||
Change in fair value of derivative liabilities - Convertible Senior Note |
|
|
|
|
|
|
|
|
— |
|
|
|
1,084 |
|
|
|
|
|
|
||||||||||||||
Acquisition and integration costs |
|
|
|
|
1,028 |
|
|
872 |
|
|
1,028 |
|
|
|
872 |
|
|
|
|
|
|
||||||||||||
Foreign exchange loss |
|
|
|
|
|
|
|
|
164 |
|
|
|
146 |
|
|
|
|
|
|
||||||||||||||
Income tax impact of adjustments (a) |
|
|
|
|
|
|
|
|
(3,597 |
) |
|
|
(3,218 |
) |
|
|
|
|
|
||||||||||||||
Adjusted |
$ |
108,902 |
|
|
$ |
151,091 |
|
|
$ |
38,286 |
|
|
$ |
97,554 |
|
|
$ |
31,828 |
|
|
|
$ |
81,552 |
|
|
|
$ |
0.75 |
|
|
$ |
1.86 |
|
_________________________________________________________ |
(a) Income tax impact of adjustments represents the tax impact related to the non-GAAP adjustments listed above and reflects an effective tax rate of |
QUIDEL CORPORATION Reconciliation of Non-GAAP Financial Information (In thousands, except per share data; unaudited) |
|||||||||||||||||||||||||||||||||
|
Six months ended June 30, |
||||||||||||||||||||||||||||||||
|
Gross Profit |
|
Operating Income |
|
Net Income |
|
Diluted EPS |
||||||||||||||||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
2021 |
|
|
2020 |
|
|
2021 |
|
2020 |
||||||||||||||||
GAAP Financial Results |
$ |
408,145 |
|
|
$ |
263,742 |
|
|
$ |
247,495 |
|
|
$ |
135,291 |
|
|
$ |
197,157 |
|
|
|
$ |
107,889 |
|
|
|
|
|
|
||||
Interest expense on Convertible Senior Notes, net of tax |
|
|
|
|
|
|
|
|
— |
|
|
|
360 |
|
|
|
|
|
|
||||||||||||||
Net income used for diluted earnings per share, if-converted method |
|
|
|
|
|
|
|
|
197,157 |
|
|
|
108,249 |
|
|
|
$ |
4.64 |
|
|
$ |
2.48 |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Non-cash stock compensation expense |
1,159 |
|
|
693 |
|
|
11,674 |
|
|
9,008 |
|
|
11,674 |
|
|
|
9,008 |
|
|
|
|
|
|
||||||||||
Amortization of intangibles |
4,032 |
|
|
3,863 |
|
|
15,508 |
|
|
14,103 |
|
|
15,508 |
|
|
|
14,103 |
|
|
|
|
|
|
||||||||||
Amortization of debt issuance costs on credit facility |
|
|
|
|
|
|
|
|
202 |
|
|
|
202 |
|
|
|
|
|
|
||||||||||||||
Non-cash interest expense for deferred consideration |
|
|
|
|
|
|
|
|
2,558 |
|
|
|
3,612 |
|
|
|
|
|
|
||||||||||||||
Change in fair value of acquisition contingencies |
|
|
|
|
101 |
|
|
848 |
|
|
101 |
|
|
|
848 |
|
|
|
|
|
|
||||||||||||
Change in fair value of derivative liabilities - Convertible Senior Note |
|
|
|
|
|
|
|
|
— |
|
|
. |
1,084 |
|
|
|
|
|
|
||||||||||||||
Acquisition and integration costs |
|
|
|
|
1,754 |
|
|
2,786 |
|
|
1,754 |
|
|
|
2,786 |
|
|
|
|
|
|
||||||||||||
Foreign exchange loss |
|
|
|
|
|
|
|
|
533 |
|
|
|
506 |
|
|
|
|
|
|
||||||||||||||
Income tax impact of adjustments (a) |
|
|
|
|
|
|
|
|
(7,112 |
) |
|
|
(6,108 |
) |
|
|
|
|
|
||||||||||||||
Adjusted |
$ |
413,336 |
|
|
$ |
268,298 |
|
|
$ |
276,532 |
|
|
$ |
162,036 |
|
|
$ |
222,375 |
|
|
|
$ |
134,290 |
|
|
|
$ |
5.24 |
|
|
$ |
3.08 |
|
_________________________________________________________ |
(a) Income tax impact of adjustments represents the tax impact related to the non-GAAP adjustments listed above and reflects an effective tax rate of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210805006080/en/
FAQ
What were the financial results for Quidel (QDEL) in Q2 2021?
What drove the decline in revenue for Quidel (QDEL) in Q2 2021?
How did Quidel (QDEL) perform in its core business during Q2 2021?
What new authorizations did Quidel (QDEL) receive recently?
What is the outlook for Quidel (QDEL) following the Q2 2021 results?
