QIAGEN N.V. Annual Report 2001

RESULTS OF OPERATIONS
The following table sets forth certain income and expense items as a percentage of net sales for the periods indicated:
2001
2000
1999
Net sales
100.0%
100.0%
100.0%
Cost of sales
30.2
30.2
29.0
Gross profit
69.8
69.8
71.0
Operating expenses:
Research and development
10.1
10.8
11.3
Sales and marketing
24.6
25.3
25.3
General and administrative
13.7
14.4
16.5
Acquisition costs
1.1
2.5
–
In-process research and development
.–
. –
3.1
Income from operations
Other income
20.3
1.1
16.8
1.2
14.8
1.0
19
Income before provision for income
taxes and minority interest
21.4
18.0
15.8
Provision for income taxes
8.3
8.3
6.9
Minority interest
.–
–
0.1
Net income
13.1%
9.7%
8.8%
In 2001, without the $3.0 million acquisition charge related to the Sawady group of companies, income from
operations for that year would have been 21.4% and net income would have been 13.7%, as a percentage of net
sales. Excluding the acquisition costs of $5.4 million in 2000 related to Operon Technologies, the percentage for
income from operations would have been 19.3% and net income would have been 12.2%, as a percentage of net sales.
In 1999, without the $5.1 million charge for purchased in-process research and development, income from operations
for that year would have been 17.9% and net income would have been 11.9%, as a percentage of net sales.
FISCAL YEAR ENDED DECEMBER 31, 2001 COMPARED TO 2000
Net Sales. Net sales in 2001 increased 22% to $263.8 million from $216.8 million in the same period of 2000.
Net sales in the United States increased 22% (or $25.2 million) to $142.4 million in 2001 from $117.2 million in
2000, and net sales outside the United States increased 22% (or $21.8 million) to $121.4 million in 2001 from
$99.6 million in 2000. Net sales within and outside of the United States increased principally due to increased unit
sales of consumable and instrumentation products to existing and new customers. Unit sales increases were attributable
to focused marketing efforts and a sales force that continues to actively identify and service customer needs.
The increase within the United States was primarily attributable to net sales at QIAGEN, Inc., located in Valencia,
California and QIAGEN Operon, Inc. (Operon) located in Alameda, California. QIAGEN, Inc. reported an increase
of 18% (or $16.9 million) in 2001 over 2000 and Operon reported an increase of 31% (or $6.3 million). Outside
of the United States, the increase in net sales was primarily due to growth at QIAGEN GmbH, located in Germany,
which reported an increase in net sales of 42% (or $12.2 million), QIAGEN Ltd, located in England, which reported
an increase of 36% (or $4.3 million) and QIAGEN K.K., located in Japan, which reported and increase of 26% (or
$4.9 million) for 2001 compared to 2000, offset by a decrease of 12% (or $1.1 million) which was recorded by
QIAGEN Instruments AG, located in Switzerland. The decrease of sales at QIAGEN Instruments reflected a shift in
sales strategy, which resulted in a reduction of net sales by QIAGEN Instruments to OEM clients. This reduction was
more than offset by increased intercompany sales to other QIAGEN companies for further resale of the instruments
as QIAGEN-branded products.