Exhibit 99.1
Diagnostic Products Corporation Announces Record Sales and
Earnings and Retirement of Director, Max Salter
LOS ANGELES--(BUSINESS WIRE)--July 25, 2005--Diagnostic Products
Corporation (NYSE:DP) today reported second quarter sales of $125.5
million, a 14% increase over the second quarter of 2004. Earnings were
$20.9 million, or $.69 per diluted share, an increase of 12% from
$18.6 million or $.62 reported for the second quarter of 2004. The
Euro and the Brazilian Real strengthened relative to the dollar, and
the net effect of foreign currency movements was a 4% increase in
sales. International sales increased 13% to $88.6 million while
domestic sales increased 15% to $36.9 million.
Sales of IMMULITE products grew 14.3% over the second quarter of
2004. IMMULITE product line sales reached $115.3 million for the
quarter. IMMULITE reagent sales increased 13.7% this quarter over the
second quarter of 2004 to $99.0 million, and IMMULITE instrument and
service revenue increased by 18.6% to $16.3 million. Sales of RIA
products were $5.4 million, a 10% decline from last year's second
quarter. Sales of other products were $4.7 million, up from $3.6
million in the same period last year. "Instrument revenue was
particularly strong in the quarter, and we released the Immunoassay
Workcell as anticipated at the end of the quarter. The FDA has
completed its inspection related to AIP and had no negative
observations. We were also pleased with the domestic growth rate of
15%," said Michael Ziering, CEO of DPC. "Finally, I'd like to thank
Max Salter, who after 23 years of service as a Director has decided to
retire. His insight and guidance will be missed, and we all wish him
the best."
The Company shipped a total of 226 IMMULITE Instruments in the
second quarter including 158 IMMULITE 2000's and 2500's. The total
number of IMMULITEs shipped is now over 10,400.
Diagnostic Products Corporation (DPC), founded in 1971, is the
global leader dedicated primarily to immunodiagnostics. DPC designs
and manufacturers automated laboratory instrumentation, which provides
fast, accurate results while reducing labor and reagent costs. DPC's
product menu includes a large variety of immunoassays covering a broad
range of clinical disease states including over 360 specific allergens
and allergy panels. Through partnerships with manufacturers of
chemistry systems and reagents, DPC also addresses the chemistry and
laboratory automation testing needs of its customers. 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; the
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)
(Amounts in Thousands, Except Per Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
SALES:
Non-Affiliated Customers $119,776 $102,749 $226,839 $199,723
Unconsolidated Affiliates 5,683 7,719 11,531 16,828
--------- --------- --------- ---------
Total Sales 125,459 110,468 238,370 216,551
COST OF SALES 52,185 44,816 98,923 90,838
--------- --------- --------- ---------
Gross Profit 73,274 65,652 139,447 125,713
OPERATING EXPENSES:
Selling 21,081 19,382 41,692 38,109
Research and Development 12,852 11,025 25,118 22,449
General and Administrative 13,587 11,058 26,143 20,723
Equity in Income of Affiliates (3,582) (2,700) (6,135) (4,830)
--------- --------- --------- ---------
OPERATING EXPENSES-NET 43,938 38,765 86,818 76,451
--------- --------- --------- ---------
OPERATING INCOME 29,336 26,887 52,629 49,262
Interest/Other Income
(Expense)-Net 1,012 (184) 1,186 (553)
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 30,348 26,703 53,815 48,709
PROVISION FOR INCOME TAXES 8,668 8,011 15,661 14,613
MINORITY INTEREST 797 73 1,137 20
--------- --------- --------- ---------
NET INCOME $20,883 $18,619 $37,017 $34,076
========= ========= ========= =========
EARNINGS PER SHARE:
BASIC $0.71 $0.64 $1.26 $1.17
DILUTED $0.69 $0.62 $1.23 $1.14
WEIGHTED AVERAGE SHARES
OUTSTANDING:
BASIC 29,316 29,059 29,295 29,014
DILUTED 30,079 29,866 30,092 29,894
CONTACT: Diagnostic Products Corporation
James L. Brill, 310-645-8200