Qiagen swings to 17% income drop despite revenue jump
Diagnostics outfit Qiagen ($QGEN) ticked its revenue up 5.3% in the third quarter, but acquisition gains from Q3 2011 made for a 17% year-over-year decline in net income in the period.
The Netherlands-based company posted income of $29.2 million, down from $35.1 million in the period a year earlier, while sales jumped to $304.3 million. Last year, Qiagen posted a big one-time gain from its $355 million buyout of Australia's Cellestis, casting a shadow over the latest quarter, the company said.
Despite the contrast, Qiagen posted growth in all of its units as some timely molecular diagnostics M&A continues to pay off. The company's recent purchases of Cellestis, Ipsogen and AmniSure accounted for 7% of Qiagen's revenue growth this quarter, and Qiagen isn't done with its expansion plans, CEO Peer Schatz said.
"Our ongoing focus on growth drivers--including new products and acquisitions, our rollout of the QIAsymphony platform and expansion in rapidly growing emerging markets--are paying off with an improved performance and building momentum," Schatz said.
Qiagen is looking to cut costs as while it boosts revenue, and it recently completed an effort to streamline its business, cutting about 10% of its workforce and combining departments. The move was designed to save $50 million each year, and Schatz said it was necessary to remain competitive as a weak economy drives down demand for lab diagnostics.
At the same time, Qiagen has hedged its lab Dx bets with all those molecular diagnostics acquisitions, and the M&A has already helped the company land a companion deal with Bayer, announced last month.
- read Qiagen's release