Exhibit 99.1
Diagnostic Products Corporation
Announces Record Fourth Quarter and Full Year 2005 Results
LOS ANGELES--(BUSINESS WIRE)--Feb. 10, 2006--Diagnostic Products
Corporation (NYSE:DP) today reported fourth quarter sales of $123.8
million, a 4% increase over the fourth quarter of 2004. Earnings were
$13.1 million, or $.43 per diluted share, up 17% from $11.1 million or
$.37 reported for the fourth quarter of 2004. The Brazilian Real
strengthened relative to the dollar while the Euro weakened, and the
net effect of foreign currency movements was a 2% decrease in sales.
Domestic sales increased 8% to $38.2 million while international sales
grew at 3%.
Sales of IMMULITE products grew 5% over the fourth quarter of
2004. IMMULITE product line sales reached $114.0 million for the
quarter. IMMULITE reagent sales increased 6% this quarter over the
fourth quarter of 2004 to $95.4 million, and IMMULITE instrument and
service revenue increased by 5% to $18.6 million. Sales of RIA
products were $5.1 million, a 13% decline from last year's fourth
quarter. Sales of other products were $4.7 million, the same as the
fourth quarter last year.
Sales for the year ended December 31, 2005 were $481.1 million, an
8% increase over the $446.8 million recorded in 2004. Net income for
the year was $67.2 million, or $2.23 per diluted share, versus $61.7
million, or $2.06, per share last year. The Brazilian Real
strengthened relative to the dollar and the Euro weakened slightly,
the net effect of foreign currency was a 2% increase in sales.
For the year, IMMULITE product line sales were $440.4 million,
compared to $404.9 million in 2004, an increase of 9%. Sales of the
mature RIA product line were $21.4 million for the year, down 11% from
last year. Sales of other products were $19.3 million for the year, up
from $17.8 million in 2004. The Company shipped a total of 256
IMMULITE Instruments in the fourth quarter, including 184 IMMULITE
2000's and 2500's. The total number of IMMULITEs shipped is now over
10,900.
"While reagent sales were disappointing we are very pleased with
the number of instruments shipped," said Michael Ziering, CEO of DPC.
"We believe the strong shipments coupled with the release of certain
key assays put us in a very good position going forward."
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 Year Ended
December 31, December 31,
------------------- -------------------
2005 2004 2005 2004
--------- --------- --------- ---------
SALES:
Non-Affiliated Customers $115,879 $110,840 $456,465 $413,952
Unconsolidated Affiliates 7,881 7,819 24,637 32,867
--------- --------- --------- ---------
Total Sales 123,760 118,659 481,102 446,819
COST OF SALES 58,031 58,010 212,690 200,049
--------- --------- --------- ---------
Gross Profit 65,729 60,649 268,412 246,770
OPERATING EXPENSES:
Selling 20,062 19,461 79,406 74,599
Research and Development 14,455 11,639 52,097 45,277
General and Administrative 13,168 15,314 51,288 47,790
Gain on Sale of Product Line (343)
Equity in Income of Affiliates (1,933) (1,914) (9,821) (8,451)
--------- --------- --------- ---------
OPERATING EXPENSES-NET 45,752 44,500 172,627 159,215
--------- --------- --------- ---------
OPERATING INCOME 19,977 16,149 95,785 87,555
Interest/Other Income
(Expense)-Net (235) (357) 2,067 450
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES
AND MINORITY INTEREST 19,742 15,792 97,852 88,005
PROVISION FOR INCOME TAXES 6,169 4,308 28,485 25,495
MINORITY INTEREST 490 341 2,214 775
--------- --------- --------- ---------
NET INCOME $13,083 $11,143 $67,153 $61,735
========= ========= ========= =========
EARNINGS PER SHARE:
BASIC $0.44 $0.38 $2.29 $2.12
DILUTED $0.43 $0.37 $2.23 $2.06
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 29,494 29,181 29,371 29,082
DILUTED 30,147 30,016 30,138 29,910
CONTACT: Diagnostic Products Corporation
James L. Brill, 310-645-8200
Chief Financial Officer
info@dpconline.com
www.dpcweb.com