Exhibit 99.1
Diagnostic Products Corporation
Announces Record Fourth Quarter and Full Year 2003 Results
LOS ANGELES--(BUSINESS WIRE)--Feb. 13, 2004--Diagnostic Products
Corporation (NYSE:DP) today reported record fourth quarter sales of
$104.8 million, an increase of 23% over $85.5 million a year ago. Net
income increased 24% to $15.5 million, or $.52 per diluted share, from
net income of $12.6 million, or $.42 per share, for the same quarter a
year ago. The dollar weakened in the fourth quarter of 2003, which had
a positive impact on sales of 10%.
Sales for the year ended December 31, 2003, were $381.4 million,
an 18% increase over the $324.1 million recorded in 2002. Net income
for the year increased 31% to $61.8 million, or $2.08 per diluted
share, from $47.3 million, or $1.60 per share, last year. The dollar
weakened against most currencies in 2003, but strengthened against the
Brazilian Real. The net effect was a positive impact on sales of 7%.
Sales of IMMULITE products grew approximately 26% in the fourth
quarter to $94.3 million, compared to $74.7 million in 2002. For the
year, IMMULITE product line sales were $338.0 million, compared to
$276.8 million in 2002, an increase of 22%. Sales of IMMULITE products
constituted 90% of total sales in the fourth quarter and approximately
89% of total sales for the year. Sales of the mature RIA product line
were $6.4 million for the quarter, down 6% from last year and $26.7
million for the year, down 11% from last year. Sales of other products
were $4.2 million in the quarter, up slightly from $4.0 million last
year and $16.7 million for the year, down from $17.5 million in 2002.
The Company shipped a total of 265 IMMULITE instruments in the
fourth quarter, including 176 IMMULITE 2000s. For the year, the
Company shipped 880 IMMULITE instruments, including 553 IMMULITE
2000s. The total number of instruments shipped worldwide is now over
9,000. "We were particularly pleased with the number of IMMULITE
2000s shipped in the quarter and the level of IMMULITE 2000 reagent
sales, which grew 39% to $51 million," said Michael Ziering, President
and CEO of DPC.
Founded in 1971, Diagnostic Products Corporation (DPC) is the
global leader dedicated exclusively to immunodiagnostic testing. The
Company's product menu includes over 400 tests to measure
microorganisms, hormones, drugs and other medically important
substances present at infinitesimal concentrations in body fluids and
tissues. DPC also designs and manufactures automated laboratory
instrumentation which provides fast, accurate results while reducing
labor and reagent costs. DPC sells its products to hospitals, clinics
and laboratories domestically and in over 100 international countries.
Additional Company information can be found on the Company's web site
at www.dpcweb.com.
Except for the historical information contained herein, this press
release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially.
These factors include the effects of governmental or other actions
relating to the Chinese subsidiary; the rate of customer demand for
the Company's products; the Company's ability to successfully market
new and existing products; its dependence on certain suppliers; its
ability to keep abreast of technological innovations and to translate
them into new products; competition; political and economic
instability in certain foreign markets, including the movements in
foreign currencies relative to the dollar; and other risks and
uncertainties disclosed from time to time in the Company's SEC reports
and filings.
Diagnostic Products Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited - In thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
--------------------- ---------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
SALES:
Non-Affiliated Customers $95,539 $77,503 $351,455 $293,283
Unconsolidated Affiliates 9,279 7,996 29,931 30,804
---------- ---------- ---------- ----------
TOTAL SALES 104,818 85,499 381,386 324,087
COST OF SALES 46,508 37,156 164,364 137,746
---------- ---------- ---------- ----------
GROSS PROFIT 58,310 48,343 217,022 186,341
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling 17,386 13,708 64,090 53,471
Research and Development 10,591 9,462 40,677 36,817
General and Administrative 9,619 9,225 34,928 30,682
Sale of Product Line - - (4,218) -
Equity in Income of
Affiliates (1,863) (1,407) (6,064) (3,841)
---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 35,733 30,988 129,413 117,129
---------- ---------- ---------- ----------
TOTAL OPERATING INCOME 22,577 17,355 87,609 69,212
Interest/Other Income
(Expense)-Net 391 702 827 (1,220)
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 22,968 18,057 88,436 67,992
PROVISION FOR INCOME TAXES 7,294 5,598 26,280 21,078
MINORITY INTEREST 173 (91) 361 (399)
---------- ---------- ---------- ----------
NET INCOME $ 15,501 $ 12,550 $ 61,795 $ 47,313
---------- ---------- ---------- ----------
EARNINGS PER SHARE:
BASIC $0.54 $0.44 $2.15 $1.66
DILUTED $0.52 $0.42 $2.08 $1.60
AVERAGE SHARES OUTSTANDING:
BASIC 28,850 28,583 28,731 28,487
DILUTED 29,804 29,700 29,679 29,628
CONTACT: Diagnostic Products Corporation
James L. Brill, 310-645-8200
info@dpconline.com
www.dpcweb.com