QIAGEN Reports Second Quarter 2012 Results, Raises Full-Year Outlook and Announces Share Repurchase Program

   QIAGEN Reports Second Quarter 2012 Results, Raises Full-Year Outlook and
                      Announces Share Repurchase Program

PR Newswire

VENLO, The Netherlands, July 24, 2012

VENLO, The Netherlands, July 24, 2012 /PRNewswire/ --

  o Solid performance in second quarter of 2012: Net sales rise 9% (+14% CER)
    to $307.2 million on growth in all customer classes; adjusted diluted EPS
    grow to $0.25 per share
  o QIAGEN raises full-year outlook for net sales and adjusted earnings growth
    in 2012
  o Accelerating growth while making significant progress on strategic
    initiatives
  o Driving platform success with QIAsymphony placements on track for 2012
    target
  o Adding content with U.S. approval of therascreen  KRAS companion
    diagnostic
  o Preparing new growth driver with initiative to provide next-generation
    sequencing workflow to meet clinical needs
  o Program authorized to repurchase up to $100 million in QIAGEN shares

QIAGEN N.V. (NASDAQ: QGEN; Frankfurt Prime Standard: QIA) announced results of
operations for the second quarter and first half of 2012, delivering a solid
performance and making significant progress on strategic initiatives to drive
innovation and growth. QIAGEN also raised the outlook for full-year net sales
and adjusted EPS targets and announced a program to repurchase up to $100
million of its shares.

In the second quarter of 2012, net sales grew 9% (+14% at constant exchange
rates, or CER) to $307.2 million from the same period in 2011, as all customer
classes, particularly Molecular Diagnostics and Applied Testing, and all
regions recorded growth. Adjusted operating income rose 10% to $86.4 million,
as the adjusted operating income margin was steady at 28% of net sales.
Adjusted diluted earnings per share (EPS) grew to $0.25 from $0.23 in the 2011
quarter.

"As we execute on our strategic initiatives, QIAGEN is delivering a solid
performance despite a challenging business environment. We are pleased with
our results in the second quarter of 2012 and have raised our full-year
outlook to reflect the success of actions we are taking. For the first time in
our history, QIAGEN will launch a share repurchase program. This is a sign of
our conviction about our future prospects, especially at a time when we
believe our shares are undervalued," said Peer M. Schatz, Chief Executive
Officer of QIAGEN N.V. "Our team is focused on growth drivers such as
expanding placements of our QIAsymphony platform and adding valuable content
across our customer classes and regions. In addition to accelerating organic
growth, innovative products we gained in the acquisitions of Cellestis,
Ipsogen and AmniSure have opened up new markets, and U.S. approval of our KRAS
companion diagnostic will propel further growth in Personalized Healthcare.
Our initiative to grow more efficiently and effectively is creating change for
the better in all areas of the organization and we are reallocating resources
to maximize value. QIAGEN is well positioned to achieve its goal to accelerate
growth in 2012."

Second quarter 2012 results

    Second quarter                                                  Change
    In $ millions, except per share
    information                                 Q2 2012  Q2 2011        $ CER
    Net sales                                     307.2    282.2       9% 14%
    Operating income, adjusted                     86.4     78.7      10%
    Net income, adjusted                           60.8     55.0      11%
    Diluted EPS, adjusted                        $ 0.25   $ 0.23
    For information on the adjusted figures, please refer to the
    reconciliation table accompanying this release.
    Adjusted net income and adjusted diluted EPS results represent
    amounts attributable to the owners of QIAGEN N.V.

Growth in all geographic regions and customer classes drove the strong
performance (+14% CER) in the second quarter of 2012. Sales of consumables and
related revenues (+12% CER) and instruments (+28% CER) both advanced at
double-digit rates. Contributions from recent acquisitions - Cellestis (as of
August 29, 2011), Ipsogen (as of July 12, 2011) and AmniSure (as of May 3,
2012) - provided nine percentage points to growth, while the rest of the
QIAGEN portfolio added five percentage points. Currency movements had a
negative impact of five percentage points on reported sales growth.  

Operating income declined 2% to $45.4 million in the second quarter of 2012
from $46.5 million in the 2011 quarter. Adjusted operating income, which
excludes items such as restructuring and acquisition-related costs,
equity-based compensation and amortization of intangible assets, rose 10% to
$86.4 million from $78.7 million in the second quarter of 2011, with the
adjusted operating income margin steady at 28% of net sales. The adjusted
gross margin was 71% of net sales in the second quarter of 2012 compared to
73% in the same period of 2011.

Net income attributable to owners of QIAGEN N.V. was steady at $33.3 million
compared to the second quarter of 2011. Diluted EPS in the second quarter of
2012 was unchanged at $0.14 (based on 240.2 million diluted shares) compared
to the year-earlier period (based on 241.0 million diluted shares). Adjusted
net income attributable to owners of QIAGEN N.V. rose 11% to $60.8 million
from $55.0 million in the 2011 quarter, as adjusted diluted EPS rose to $0.25
in the second quarter of 2012 from $0.23 in the same period of 2011.

Reconciliations of reported results in accordance with U.S. generally accepted
accounting principles (GAAP) to adjusted results are included in the tables
accompanying this release.

"The strong increase in sales across QIAGEN's product portfolio, our global
operations and focus on cost management drove double-digit growth in adjusted
net income for the second quarter and first half of 2012," said Roland
Sackers, Chief Financial Officer of QIAGEN N.V. "To grow more efficiently and
effectively, QIAGEN is reallocating resources freed up by cost cutting to
support our strategic initiatives. Thanks to the sustained growth of QIAGEN,
we are able to invest in our businesses and also use a portion of our
financial capacity to repurchase shares."

First half 2012 results

    First half                                                      Change
    In $ millions, except per share
    information                                  H1 2012  H1 2011       $ CER
    Net sales                                      603.6    546.4     10% 14%
    Operating income, adjusted                     166.7    149.2     12%
    Net income, adjusted                           115.6    104.5     11%
    Diluted EPS, adjusted                         $ 0.48   $ 0.43
    For information on the adjusted figures, please refer to the
    reconciliation table accompanying this release.
    Adjusted net income and adjusted diluted EPS results represent
    amounts attributable to the owners of QIAGEN N.V.

Net sales advanced at a double-digit pace in the first half of 2012, rising
10% (+14% CER) as the acquisitions of Cellestis, Ipsogen and AmniSure
contributed eight percentage points to growth and the rest of the QIAGEN
portfolio added six percentage points. Sales of consumables and related
revenues (+13% CER) as well as instruments (+17% CER) benefited from the broad
business improvement across all geographic regions and customer classes,
particularly Molecular Diagnostics and Applied Testing. Currency movements had
a negative impact of four percentage points on reported growth.

Operating income for the first half of 2012 declined 4% to $81.9 million from
$84.9 million in the same period of 2011. Adjusted operating income, which
excludes items such as restructuring and acquisition-related costs,
equity-based compensation and amortization of intangible assets, rose 12% to
$166.7 million from $149.2 million in the first half of 2011. The adjusted
operating income margin improved to 28% of net sales in the first half of 2012
from 27% a year earlier. The adjusted gross margin was 71% of net sales in the
2012 period compared to 73% a year ago.

Net income attributable to owners of QIAGEN N.V. rose 1% to $61.9 million in
the first half of 2012 from $61.3 million in the same period of 2011, while
diluted EPS was $0.26 (based on 239.6 million diluted shares) compared to
$0.25 (240.7 million diluted shares) in the year-ago period. Adjusted net
income attributable to owners of QIAGEN N.V. grew 11% to $115.6 million in the
first half of 2012, from $104.5 million in the 2011 period, as adjusted
diluted EPS rose to $0.48 from $0.43.

Cash and cash equivalents at June 30, 2012, amounted to $214.0 million
compared to $221.1 million at December 31, 2011. Net cash provided by
operating activities decreased to $100.0 million in the first half of 2012
from $106.1 million in the same period of 2011, in part due to cash payments
of $35.9 million for restructuring activities in the 2012 period. Net cash
used in investing activities was $185.0 million (including cash payments of
$131.8 million for acquisitions), up from $129.8 million in the 2011 period.
Net cash provided by financing activities amounted to $78.0 million compared
to $7.2 million in the first half of 2011, which was mainly due to a $68.9
million increase in debt.

Reconciliations of reported results in accordance with U.S. generally accepted
accounting principles (GAAP) to adjusted results are included in the tables
accompanying this release.

Business review

Geographic regions

In the second quarter of 2012, the Asia-Pacific / Japan region (18% of net
sales, +20% CER) led the performance among geographic regions on contributions
from Japan and China, particularly in Molecular Diagnostics. The Europe /
Middle East / Africa region (35% of net sales, +18% CER) grew on expansion in
Pharma and Molecular Diagnostics, driven by the QIAsymphony automation system
as well as rapid growth in Personalized Healthcare. In the Americas (46% of
net sales, +7% CER), Applied Testing gains and demand for the QuantiFERON
latent TB test more than offset the expected decline in U.S. HPV (human
papillomavirus) assay sales.

Product categories

Consumables and related revenues (86% of net sales, +12% CER) in the second
quarter of 2012 benefited from contributions in all customer classes, led by
double-digit growth in Molecular Diagnostics. For the first half of 2012,
consumables and related revenues represented 87% of net sales and grew 13% CER
compared to the same period in 2011.

Instrument sales (14% of net sales, +28% CER) in the second quarter of 2012
grew at a faster pace than consumables, driven by initiatives to secure new
product placements such as the QIAsymphony automation portfolio and its
Rotor-Gene Q real-time PCR platform. Applied Testing and Molecular Diagnostics
delivered dynamic double-digit growth in instrument sales compared to the
second quarter of 2011, a period with relatively soft demand. For the first
half of 2012, instrument sales rose 17% CER compared to the same period in
2011 and represented 13% of net sales.

QIAGEN's sales growth is energized by a group of Molecular Diagnostics
products that accounted for approximately 31% of net sales in the second
quarter of 2012 and grew 54% CER compared to the same period in 2011. These
growth drivers include the QIAsymphony automation platform, the QuantiFERON
latent TB test acquired with Cellestis, the expanding portfolio of companion
diagnostics in Personalized Healthcare (including blood cancer tests acquired
with Ipsogen) and the AmniSure^[^] test for rupture of fetal membranes (ROM)
in pregnant women, a widespread cause of premature delivery and neonatal
complications.

Customer classes

An overview of performance in QIAGEN's four customer classes (based on total
sales results that include organic growth and acquisitions at CER):

Molecular Diagnostics (Q2 2012: 48% of net sales, +22% CER) achieved solid
gains in sales of both consumables and instruments, as the broad portfolio
more than offset the expected decline in HPV sales. In Prevention, the
QuantiFERON latent TB test delivered significant sales contributions,
benefiting from the integration with QIAGEN and sales and marketing
investments made after the acquisition of Cellestis in August 2011. Global HPV
test sales (17% of total QIAGEN sales) declined approximately 6% CER for the
first half of 2012 and by 12% in the second quarter. In the U.S. (13% of total
QIAGEN sales), market conversion initiatives and the positive response by
physicians to cervical cancer screening guideline updates in early 2012 were
more than offset by the pricing effects of multiyear agreements implemented
with many customers since early 2011. In particular in the U.S., QIAGEN is
very successfully managing its leadership and market share in the more
diversified competitive landscape following the entrance of competing products
over the last few years, and continues to expect increasing volumes and a
single-digit decline in HPV assay sales on a global basis for the full-year
2012. Personalized Healthcare grew at a strong double-digit pace on demand for
companion diagnostic kits in Europe and Japan, with the Ipsogen blood cancer
testing portfolio providing growth since the acquisition in July 2011.
Milestone payments for co-development projects with pharmaceutical companies
were also higher than in the year-ago period. In Profiling, sales rose in key
markets for products used in disease analysis. In Point of Need, the
second-quarter acquisition of the AmniSure assay further contributed to
growth. In the first half of 2012, Molecular Diagnostics grew 21% CER and
represented 47% of net sales.

Applied Testing (Q2 2012: 8% of net sales, +28% CER) delivered accelerated
growth in the second quarter of 2012, as instrument sales doubled compared to
the year-ago period. Consumables sales grew at a high single-digit pace. All
regions showed double-digit growth, driven by human identification and
forensic products. In the first half of 2012, Applied Testing advanced 26% CER
and grew to 8% of net sales.

Pharma (Q2 2012: 20% of net sales, +8% CER) maintained a solid pace on higher
sales of instruments and consumables, especially QIAGEN products used for
molecular pathway analysis and biomarker development. Asia-Pacific / Japan led
the performance, benefiting from the expansion of R&D activities, while the
U.S. and Europe also provided contributions. In the first half of 2012, Pharma
grew 9% CER and represented 20% of net sales.

Academia (Q2 2012: 24% of net sales, +1% CER) generated single-digit growth in
consumables, while instrument sales declined slightly, in the second quarter
of 2012. All regions provided contributions, with modest growth achieved in
the U.S. and Europe despite the ongoing impact of budget uncertainty and
austerity measures, which are expected to extend into the second half of the
year. In the first half of 2012, Academia grew 2% CER and represented 25% of
net sales.

Delivering growth at a faster pace in 2012

QIAGEN is delivering growth at a faster pace in 2012, reaping the benefits of
the progress being made on strategic initiatives to drive growth and
innovation. These initiatives focus on leveraging QIAGEN's leadership in
Sample & Assay Technologies to (1) drive platform success, especially with the
modular QIAsymphony automation platform; (2) add test content for use in all
customer classes; (3) broaden geographic presence, especially in emerging
markets; and (4) grow efficiently and effectively.

Drive platform success

A key element of QIAGEN's growth strategy is securing placements around the
world of the QIAsymphony automation platform, the industry's first modular
system that can process commercial assays as well as a broad range of
laboratory-developed tests from sample to clinical result. Customer interest
for this system continues to grow, particularly in Asia-Pacific and emerging
markets, due to its unique profile and capabilities for use by a broad range
of applications.

QIAGEN is well on track to achieve its year-end 2012 target for cumulative
placements of more than 750 QIAsymphony automation platforms, adding more than
200 new systems during the year and building on the installed base of over 550
systems worldwide at the end of 2011. The Rotor-Gene Q MDx real-time PCR
cycler, which is one of the modules in the QIAsymphony family, has received
U.S. regulatory approval for use in healthcare laboratories with two QIAGEN
diagnostic tests so far in 2012.

In June 2012, QIAGEN unveiled an advanced initiative to enter select segments
of the field of next-generation sequencing (NGS) by adding a specialized
automation platform paired with novel content. The initiative aims to offer
complete workflows that will expand the use of NGS technologies, which
currently focus on life science research, into new areas such as clinical
research and molecular diagnostics. Overcoming the current challenges to
clinical use of NGS technologies could lead to their adoption in areas such as
exploratory diagnostics, the diagnosis of complex diseases and treatment of
cancer patients. NGS technologies are also expected to complement established
routine molecular technologies such as real-time PCR.

The first products from QIAGEN's NGS initiative are expected to launch in
2013, with a priority focus on clinical research in Academia and Pharma as
well as select areas of Molecular Diagnostics such as Personalized Healthcare.
The sample-to-result workflows will combine a broad range of QIAGEN products
with a benchtop sequencer module now in late-stage development with
Intelligent Bio-Systems, Inc., a U.S. company that QIAGEN acquired in 2012.
These workflows will incorporate the QIAcube and QIAsymphony automation
platforms to create sample-to-result solutions. They will maximize the value
of QIAGEN's leadership in sample preparation solutions as well as the
GeneGlobe (http://www.geneglobe.com) portfolio offering access to more than
60,000 well-defined and characterized molecular assays. New bioinformatics,
including NGS solutions from a new collaboration with SAP AG, will handle the
processing of large amounts of data produced in next-generation sequencing.

Add content

Building on the success of the modular QIAsymphony platform, QIAGEN is adding
novel content for use on the broad range of instruments in its portfolio,
particularly Rotor-Gene Q MDx.

A landmark addition of test content was achieved in July 2012 when QIAGEN
received U.S. regulatory approval for its therascreen KRAS RGQ PCR Kit, which
provides guidance on the use of Erbitux^® (cetuximab) as a treatment in
patients with metastatic colorectal cancer. This marked a milestone in
QIAGEN's global expansion of its Personalized Healthcare franchise. Entry into
the U.S. market with our first FDA-approved companion diagnostic builds on
success in Europe and Japan, where QIAGEN already offers a range of
Personalized Healthcare tests based on real-time PCR or Pyrosequencing.

QIAGEN is actively expanding its pipeline in companion diagnostics and plans
to submit several other tests for U.S. regulatory approval in the coming
years. The next U.S. submission is expected in 2012 involving a therascreen
EGFR assay as a companion diagnostic for use with Boehringer Ingelheim's
investigational medicine afatinib in patients with non-small cell lung cancer
(NSCLC). Other submissions are expected to emerge from more than 15 projects
QIAGEN has under way to co-develop and market companion diagnostics with
leading pharmaceutical and biotech companies. In addition, QIAGEN is active in
numerous partnerships and initiatives to further broaden its overall assay
portfolio in Molecular Diagnostics as well as in other customer classes.

In line with its strategy to add novel content through targeted acquisitions,
in May 2012 QIAGEN acquired AmniSure International LLC, a privately owned U.S.
company, that has created the AmniSure assay, which detects a proprietary
analyte that is highly sensitive and specific to rupture of fetal membranes, a
condition in which fluid leaks from the amniotic sac prematurely. Growth of
this product, which is approved in the U.S. and many markets worldwide, is
expected to be catalytic to QIAGEN's Point of Need portfolio. AmniSure is
expected to contribute approximately $12 million of sales to QIAGEN in 2012,
but to be neutral to adjusted EPS as expansion investments are made.

Broaden geographic presence

QIAGEN continues to expand its geographic presence in attractive markets
around the world, particularly the top seven emerging markets of Brazil,
Russia, India, China, South Korea, Mexico and Turkey. These seven countries
represented 12% of net sales in the second quarter of 2012 and generated 28%
CER growth over the year-ago period. In the first half of 2012, these markets
provided 11% of net sales and 27% CER growth.

Grow efficiently and effectively

Several actions are under way to help QIAGEN grow more efficiently and
effectively. In the second quarter, organizational and leadership changes were
announced to improve capabilities to address customer needs. The far-reaching
changes, which took effect on July 1, included a redefinition of roles and
accountabilities as well as organizational realignments.

A company-wide project launched in November 2011 to enhance productivity and
free up resources for reallocation to strategic initiatives is producing
changes throughout QIAGEN. Operational improvements are being made to focus
R&D activities on high-growth areas in all customer classes, optimize capacity
utilization at selected sites and capture savings from shared service
functions and outsourcing. QIAGEN has set a goal of generating approximately
$50 million of pre-tax savings in 2012, with the majority to be reinvested.
Further restructuring charges may be taken during the course of 2012.

$100 million share repurchase program authorized, reviewing debt structure

QIAGEN has passed a resolution to exercise the authorization granted by the
General Meeting of Shareholders on June 27, 2012, and to purchase shares up to
a total of $100 million (excluding transaction costs). Based on the closing
price on July 23, this represents approximately six million shares. Details of
the repurchase program will be announced before its actual commencement in
line with Article 4, Section (2) of EC regulation 2273/2003 (so called Safe
Harbour). Repurchased shares will be held in treasury in order to satisfy
various obligations, which include exchangeable debt instruments and employee
share-based remuneration plans.

QIAGEN is also reviewing its current debt structure and may take advantage of
the currently low mid-to-long-term interest rates.

2012 outlook

Based on the strong performance in the first half of 2012, as well as taking
into account the acquisition of AmniSure and the initiative to enter
next-generation sequencing, QIAGEN has raised its outlook for net sales and
adjusted earnings growth in 2012. For the full year, total net sales are now
expected to rise approximately 8-9% CER (previously 6-8% CER) on a mix of
contributions from the acquisitions of Cellestis and Ipsogen in 2011 and
AmniSure in May 2012, as well as the rest of the business. Full-year reported
sales are expected to be adversely affected by currency movements against the
U.S. dollar, QIAGEN's reporting currency. Adjusted diluted earnings per share
(EPS) are now expected to rise to approximately $1.04-1.06 for full-year 2012
(previously $1.03-1.05). This takes into account approximately $0.01 per share
of dilution for investments in the next-generation sequencing initiative,
which included the acquisition of Intelligent Bio-Systems. For the third
quarter of 2012, net sales growth of approximately 9-10% CER is expected, and
adjusted diluted EPS is expected to be approximately $0.25. These expectations
do not take into account any further acquisitions that could be completed in
2012, the potential impact of share repurchases or the completion of any debt
market transactions during the year.

Conference Call and Webcast Details

Information on QIAGEN's performance will be presented during a conference call
on Wednesday, July 25, 2012, at 9:30 ET / 14:30 GMT / 15:30 CET. The
corresponding presentation slides will be available for download shortly
before the event at http://www.qiagen.com/goto/ConferenceCall, and a webcast
will be available at this website. A replay will also be made available on
this website.

Use of Adjusted Results

QIAGEN has regularly reported adjusted results, as well as results considered
on a constant exchange rate basis, to give additional insight into its
financial performance. These adjusted results include adjusted gross profit,
adjusted operating income, adjusted net income attributable to owners of
QIAGEN N.V. and adjusted diluted EPS. In addition, QIAGEN provides information
on free cash flow, which it defines as net cash provided by operating
activities minus purchases of property and equipment. Adjusted results are
non-GAAP financial measures that QIAGEN believes should be considered in
addition to the reported results prepared in accordance with generally
accepted accounting principles, but should not be considered as a substitute.
QIAGEN believes certain items should be excluded from adjusted results when
they are outside of its ongoing core operations, vary significantly from
period to period, or affect the comparability of results with its competitors
and its own prior periods. Reconciliations of reported results to adjusted
results are included in the tables accompanying this release.

Press release and tables with detailed financial information can be downloaded
in PDF format from:
http://www.qiagen.com/about/pressreleases/pressreleaseview.aspx?PressReleaseID=386&lang=EN

About QIAGEN

QIAGEN N.V., a Netherlands holding company, is the leading global provider
of Sample & Assay Technologies that are used to transform biological materials
into valuable molecular information. Sample technologies are used to isolate
and process DNA, RNA and proteins from biological samples such as blood or
tissue. Assay technologies are then used to make these isolated biomolecules
visible and ready for interpretation. QIAGEN markets more than 500
products around the world, selling both consumable kits and automation systems
to customers through four customer classes: Molecular Diagnostics (human
healthcare), Applied Testing (forensics, veterinary testing and food safety),
Pharma (pharmaceutical and biotechnology companies) and Academia (life
sciences research). As of June 30, 2012, QIAGEN employed approximately 4,000
people in over 35 locations worldwide. Further information can be found at
http://www.qiagen.com/.

Certain of the statements contained in this news release may be considered
forward-looking statements within the meaning of Section 27A of the U.S.
Securities Act of 1933, as amended, and Section 21E of the U.S. Securities
Exchange Act of 1934, as amended. To the extent that any of the statements
contained herein relating to QIAGEN's products, markets, strategy or operating
results, including without limitation its expected operating results, new
product developments, new product launches, regulatory submissions, and
financing plans are forward-looking, such statements are based on current
expectations and assumptions that involve a number of uncertainties and risks.
Such uncertainties and risks include, but are not limited to, risks associated
with management of growth and international operations (including the effects
of currency fluctuations, regulatory processes and dependence on logistics),
variability of operating results and allocations between customer classes, the
commercial development of markets for our products in applied testing,
personalized healthcare, clinical research, proteomics, women's health/HPV
testing and nucleic acid-based molecular diagnostics; changing relationships
with customers, suppliers and strategic partners; competition; rapid or
unexpected changes in technologies; fluctuations in demand for QIAGEN's
products (including fluctuations due to general economic conditions, the level
and timing of customers' funding, budgets and other factors); our ability to
obtain regulatory approval of our products; difficulties in successfully
adapting QIAGEN's products to integrated solutions and producing such
products; the ability of QIAGEN to identify and develop new products and to
differentiate and protect our products from competitors' products; market
acceptance of QIAGEN's new products, the consummation of acquisitions, and the
integration of acquired technologies and businesses. For further information,
please refer to the discussions in reports that QIAGEN has filed with, or
furnished to, the U.S. Securities and Exchange Commission (SEC).

Contacts:

Public Relations:
Dr. Thomas Theuringer
Director Public Relations
+49-2103-29-11826
+1-240-686-7425

Email: pr@qiagen.com

http://www.twitter.com/qiagen
http://www.qiagen.com/about/press

Investor Relations:
John Gilardi
VP Corporate Communications
+49-2103-29-11711
+1-240-686-2222

Albert F. Fleury
Investor Relations North America
+1-240-686-7400

Email: ir@qiagen.com

http://www.qiagen.com/about/investorrelation

SOURCE QIAGEN N.V.