EXHIBIT 99.1
Diagnostic Products Corporation Announces Third Quarter Results
LOS ANGELES--(BUSINESS WIRE)--Oct. 26, 2004--Diagnostic Products
Corporation (NYSE:DP) today reported sales of $109.0 million for its
third quarter, a 16.2% increase over the third quarter of 2003.
Earnings were $16.5 million, or $.55 per diluted share, a decrease of
3% from $17.0 million or $.57 for the third quarter of 2003. The
dollar weakened in the third quarter of 2004, which had a 4.2%
positive impact on sales. Included in general and administrative
expenses in the third quarter of 2004 is a $1.0 million increase in
the Company's accrual for estimated payments to the United States
Justice Department and the United States Securities and Exchange
Commission to resolve its issues related to its Chinese subsidiary as
well as $800,000 in legal and accounting fees relating to the same
issue. The Company's 2003 operating income included a gain of $4.2
million or $.10 per diluted share related to the sale of its Pathodx
product line. International sales were $76.7 million and domestic
sales were $32.3 million.
Sales of IMMULITE products continued to be very strong, growing
20% over the third quarter of 2003. IMMULITE product line sales were
$99.7 million for the quarter, 92% of the total sales of the Company.
IMMULITE reagent sales increased 21% this quarter over the third
quarter of 2003. Sales of RIA products were $5.8 million, a 12%
decline from last year's third quarter. Sales of other products were
$3.5 million, down from $4.3 million in the same period last year.
The Company shipped a total of 271 IMMULITE Instruments in the
third quarter including 199 IMMULITE 2000s and 2500s. The total
number of IMMULITEs shipped is now over 9,700. "Our business continues
to do very well," said Michael Ziering, President and CEO of DPC.
"Regarding our progress with the FDA, the independent auditor who is
reporting to the FDA has completed the major portion of his field work
relating to the Application Integrity Policy and we still think the
first quarter of 2005 is a reasonable time frame to resolve the
issue."
Diagnostic Products Corporation (DPC), founded in 1971, is the
global leader dedicated exclusively to immunodiagnostics. Through
partnerships with manufacturers of chemistry systems and reagents, DPC
also addresses the chemistry and Laboratory automation testing needs
of its customers. DPC's product menu includes about 75 immunoassays
and over 350 specific allergens and allergy panels. DPC also designs
and manufactures automated laboratory instrumentation, which provides
fast, accurate results while reducing labor and reagent costs. DPC
with its partners, offers one of the largest and most diversified
combined chemistry and immunoassay menus available, covering most
laboratory tests requested. DPC sells its products to hospitals,
clinics and laboratories domestically and in more than 100 countries.
DPC is committed to delivering to customers the highest quality
products with superior service and support. The turquoise zebra icon
symbolizes DPC's uniqueness in the immunodiagnostic industry as "a
company that stands out." 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 and other actions
relating to the FDA's decision that its Application Integrity Policy
should be applied to the Company or relating to the Company's Chinese
affiliate; the rate of customer demand for the Company's products;
Company's ability to successfully market new and existing products;
its dependence on certain suppliers; domestic and foreign government
regulation; its ability to keep abreast of technological innovations
and to translate them into new products; competition; political and
economic instability in certain markets including the movements of
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
September 30,
2004 2003
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SALES:
Non-Affiliated Customers $100,742 $87,483
Unconsolidated Affiliates 8,221 6,254
Total Sales 108,963 93,737
COST OF SALES 46,432 41,335
Gross Profit 62,531 52,402
OPERATING EXPENSES:
Selling 19,126 15,649
Research and Development 11,188 10,037
General and Administrative 11,752 8,401
Gain on Sale of Product Line -- (4,218)
Equity in Income of Affiliates (1,705) (1,280)
OPERATING EXPENSES - NET 40,361 28,589
OPERATING INCOME 22,170 23,813
Interest/Other Income (Expense) - Net 1,334 283
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 23,504 24,096
PROVISION FOR INCOME TAXES 6,573 6,988
MINORITY INTEREST 414 143
NET INCOME $16,517 $16,965
EARNINGS PER SHARE:
BASIC $.57 $.59
DILUTED $.55 $.57
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 29,120 28,760
DILUTED 29,853 29,697
CONTACT: Diagnostic Products Corporation
James L. Brill, 310-645-8200