Exhibit 99.1
Diagnostic Products Corporation
Announces Third Quarter Sales and Earnings
LOS ANGELES--(BUSINESS WIRE)--Oct. 24, 2005--Diagnostic Products
Corporation (NYSE:DP) today reported third quarter sales of $116.3
million, a 7% increase over the third quarter of 2004. Sales for the
nine months ending September 30, 2005 were $354.7 million, an increase
of 9% over the same period in 2004. Earnings for the quarter were
$17.1 million, or $.56 per diluted share, up from $16.5 million or
$.55 reported for the third quarter of 2004. Earnings for the nine
months were $54.1 million or $1.79 per diluted share versus $50.6
million or $1.69 per diluted share in the same period in 2004. In the
third quarter of 2005, the Brazilian real strengthened relative to the
dollar while the euro weakened slightly, and the net effect of foreign
currency movements was a 2% increase in sales. In the first nine
months of 2005 both the real and the euro strengthened relative to the
dollar and the effect of currency movements was an increase in sales
of 3%. In the third quarter, domestic sales increased 15% to $37.1
million while international sales grew at 3%. For the nine months,
domestic sales increased 13% to $106.3 million while international
sales grew at 7%.
Sales of IMMULITE products grew 8% over the third quarter of 2004.
IMMULITE product line sales reached $107.7 million for the quarter.
IMMULITE reagent sales increased 7% this quarter over the third
quarter of 2004 to $91.9 million, and IMMULITE instrument and service
revenue increased by 16% to $15.8 million. Sales of RIA products were
$5.3 million, a 9% decline from last year's third quarter. Sales of
other products were $3.3 million, versus $3.5 million in the same
period last year. "We were disappointed in the reagent flow this
quarter which is a reflection of the limited number of tests released
over the last year," said Michael Ziering, CEO of DPC. "However, we
have released three new tests on the 2500 for international markets in
the last three months and are on track to release proBNP
internationally in November."
The Company shipped a total of 226 IMMULITE instruments in the
third quarter including 146 IMMULITE 2000s and 2500s. The total number
of IMMULITEs shipped is now over 10,600. Diagnostic Products
Corporation, founded in 1971, is a global leader dedicated to
immunodiagnostics. DPC's product menu includes over 75 immunoassays
and more than 375 specific allergens and allergy panels. In addition,
DPC addresses the chemistry and laboratory automation testing needs of
its customers through partnerships with manufacturers of chemistry
systems and reagents. The combined chemistry and immunoassay menu is
one of the largest and most diversified available, covering most
laboratory tests requested. 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 in more than 100 countries.
Additional Company information can be found on DPC's website 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 governmental or other action 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 Nine Months Ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
SALES:
Non-Affiliated Customers $111,105 $100,742 $337,944 $300,465
Unconsolidated Affiliates 5,225 8,221 16,756 25,049
--------- --------- --------- ---------
Total Sales 116,330 108,963 354,700 325,514
COST OF SALES 50,499 46,432 149,422 137,270
--------- --------- --------- ---------
Gross Profit 65,831 62,531 205,278 188,244
OPERATING EXPENSES:
Selling 20,215 19,126 61,907 57,235
Research and Development 12,524 11,188 37,642 33,637
General and Administrative 11,977 11,752 38,120 32,475
Gain on Sale of Product Line (343) (343)
Equity in Income of Affiliates (1,752) (1,705) (7,887) (6,535)
--------- --------- --------- ---------
OPERATING EXPENSES-NET 42,621 40,361 129,439 116,812
--------- --------- --------- ---------
OPERATING INCOME 23,210 22,170 75,839 71,432
Interest/Other Income
(Expense)-Net 1,084 1,334 2,270 781
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 24,294 23,504 78,109 72,213
PROVISION FOR INCOME TAXES 6,655 6,573 22,316 21,186
MINORITY INTEREST 587 414 1,724 434
--------- --------- --------- ---------
NET INCOME $17,052 $16,517 $54,069 $50,593
========= ========= ========= =========
EARNINGS PER SHARE:
BASIC $0.58 $0.57 $1.84 $1.74
DILUTED $0.56 $0.55 $1.79 $1.69
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 29,395 29,120 29,329 29,049
DILUTED 30,212 29,853 30,133 29,880
CONTACT: Diagnostic Products Corporation
James L. Brill, 310-645-8200