OraSure Technologies, Inc. (NASDAQ:OSUR), a leader in point-of-care
diagnostic tests and specimen collection devices, today announced
its consolidated financial results for the three and six months
ended June 30, 2017.
Financial Highlights
- Consolidated net revenues for the second quarter of 2017 were
$40.2 million, a 28% increase from the second quarter of 2016. Net
product revenues were $39.1 million, representing a 42% increase
over the second quarter of 2016.
- Consolidated net revenues for the six months ended June 30,
2017 were $72.7 million, a 20% increase from the comparable period
of 2016. Net product revenues were $70.6 million,
representing a 34% increase over the first half of 2016
- Net molecular collection systems revenues were $16.1 million
during the second quarter of 2017, which represents a 90% increase
over the second quarter of 2016. Net molecular collection systems
revenues during the six months ended June 30, 2017 were $26.8
million, a 75% increase from the comparable period in 2016.
- Total OraQuick® HCV sales of $7.6 million for the second
quarter of 2017 increased 138% compared to the second quarter of
2016 and included a 268% increase in international sales of the
product from the prior year quarter. OraQuick® HCV sales were $13.7
million in the first six months of 2017, a 125% increase over the
first six months of 2016 and included a 298% increase in
international sales of the product from the prior year period.
- Net revenues from international sales of the Company’s
OraQuick® HIV products remained consistent at $2.0 million in the
second quarters of 2017 and 2016. Total international
OraQuick® HIV sales for the six months ended June 30, 2017 were
$4.7 million, a 65% increase over the first six months of
2016.
- Consolidated net income for the second quarter of 2017 was $5.4
million, or $0.09 per share on a fully diluted basis, which
compares to consolidated net income of $3.8 million, or $0.07 per
share on a fully diluted basis, for the second quarter of
2016. Consolidated net income for the six months ended June
30, 2017 was $17.9 million, or $0.30 per share on a fully-diluted
basis, which compares to consolidated net income of $6.3 million,
or $0.11 per share, for the comparable period of 2016.
Results for the first six months of 2017 included a $12.5 million
pre-tax gain related to a litigation settlement that was accounted
for as a reduction of operating expenses
- Cash and short-term investments totaled $162.1 million and
working capital amounted to $182.5 million at June 30, 2017.
”Our second quarter results were truly
outstanding, driven by strong performances in our molecular
collection and infectious disease businesses,” said Douglas
A. Michels, President and Chief Executive Officer of OraSure
Technologies, Inc. “We are successfully executing against our
strategic growth objectives globally. Our existing business
momentum is strong, and we believe we are in the early stages of
addressing several new large business opportunities. Because
of the potential of these opportunities, we are also building
additional production capacity to meet the expected strong demand
for our products in the coming years.”
Financial Results
Consolidated net product revenues for the second
quarter of 2017 increased 42% over the comparable period of 2016,
primarily as a result of higher sales of the Company’s molecular
collections and OraQuick® HCV products, partially offset by lower
domestic sales of the Company’s professional OraQuick® HIV
product.
Consolidated net product revenues for the first six months of
2017 increased 34% over the comparable period of 2016, primarily as
a result of higher sales of the Company’s molecular collections and
OraQuick® HCV products and higher international sales of the
OraQuick® HIV self-test, partially offset by lower domestic sales
of the Company’s professional OraQuick® HIV product.
Consolidated other revenues for the second quarter and first six
months of 2017 were $1.0 million and $2.1 million, respectively.
This compares to consolidated other revenues for the second quarter
and first six months of 2016 of $3.8 million and $7.6 million,
respectively. Other revenues in 2017 represent funding received
from the U.S. Biomedical Advanced Research Development Authority
(“BARDA”). Other revenues in the second quarter of 2016
included $417,000 of BARDA funding and $3.4 million of exclusivity
revenues recognized under the Company’s HCV co-promotion agreement
with AbbVie, which terminated effective December 31, 2016.
Other revenues in the first six months of 2016 included $899,000 of
BARDA funding and $6.7 million of AbbVie exclusivity revenues.
Consolidated gross margin was 63% for both the three and six
months ended June 30, 2017. Consolidated gross margin for the three
and six months ended June 30, 2016 was 67% and 68%,
respectively. Gross margin for the current quarter and for
the first six months of 2017 decreased primarily due to the absence
of AbbVie exclusivity revenues during these periods. Gross
margin in the first six months of 2017 was also negatively impacted
by an increase in lower margin product sales and higher scrap and
spoilage costs.
Consolidated operating expenses increased to $18.6 million
during the second quarter of 2017 compared to $16.7 million in the
second quarter of 2016. For the six months ended June 30,
2017, consolidated operating expenses were $23.0 million, an $11.3
million decrease from the $34.4 million reported for the six months
ended June 30, 2016. The quarterly increase was largely due
to higher staffing costs and increased lab supplies. The decrease
in the six-month period was primarily due to the $12.5 million gain
on a litigation settlement, the absence of costs associated with
the AbbVie HCV co-promotion agreement, and lower legal fees,
partially offset by increased staffing costs and higher research
and development expenses.
Operating income increased 58% to $6.9 million
in the second quarter of 2017 compared to $4.3 million in the
second quarter of 2016. Operating income for the six months
ended June 30, 2017 was $22.7 million, a 223% increase over the
comparable period in 2016.
The Company’s cash and short-term investment balance totaled
$162.1 million at June 30, 2017, compared to $120.9 million at
December 31, 2016. Working capital was $182.5 million at June
30, 2017, compared to $139.1 million at December 31, 2016.
For the six months ended June 30, 2017, the Company generated $21.7
million in cash from operations.
Third Quarter 2017 Outlook
The Company expects consolidated net revenues to
range from $40.5 million to $41.5 million and is projecting
consolidated net income of $0.09 to $0.10 per share for the third
quarter of 2017.
Financial Data
|
|
Condensed Consolidated Financial
Data |
|
(In thousands, except per-share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Six months ended |
|
June 30, |
|
|
June 30, |
|
|
|
2017 |
|
2016 |
|
|
2017 |
|
2016 |
|
Results of
Operations |
|
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ 40,176 |
|
$ 31,359 |
|
|
$ 72,722 |
|
$ 60,448 |
|
Cost of products
sold |
|
14,699 |
|
10,274 |
|
|
26,935 |
|
19,050 |
|
Gross
profit |
|
25,477 |
|
21,085 |
|
|
45,787 |
|
41,398 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
Research and development |
|
3,338 |
|
2,985 |
|
|
6,308 |
|
5,351 |
|
Sales and marketing |
|
7,502 |
|
7,397 |
|
|
14,379 |
|
16,103 |
|
General and administrative |
|
7,750 |
|
6,354 |
|
|
14,842 |
|
12,896 |
|
Gain on litigation settlement |
|
- |
|
- |
|
|
(12,500) |
|
- |
|
Total operating
expenses |
|
18,590 |
|
16,736 |
|
|
23,029 |
|
34,350 |
|
Operating
income |
|
6,887 |
|
4,349 |
|
|
22,758 |
|
7,048 |
|
Other income
(expense) |
|
96 |
|
(340) |
|
|
563 |
|
(532) |
|
Income before income
taxes |
|
6,983 |
|
4,009 |
|
|
23,321 |
|
6,516 |
|
Income tax expense |
|
1,555 |
|
173 |
|
|
5,452 |
|
234 |
|
Net income |
|
$ 5,428 |
|
$ 3,836 |
|
|
$ 17,869 |
|
$ 6,282 |
|
Earnings per
share: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.09 |
|
$ 0.07 |
|
|
$ 0.31 |
|
$ 0.11 |
|
Diluted |
|
$ 0.09 |
|
$ 0.07 |
|
|
$ 0.30 |
|
$ 0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
58,478 |
|
55,543 |
|
|
57,708 |
|
55,497 |
|
Diluted |
|
60,728 |
|
56,208 |
|
|
59,755 |
|
56,144 |
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Net Revenues by Market and Product
(Unaudited)
|
|
|
|
|
|
Three Months Ended June
30, |
|
|
|
Dollars |
|
|
|
|
Percentage of Total Net Revenues |
|
Market |
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infectious
disease testing |
|
$ 16,663 |
|
$ 12,949 |
|
29 |
% |
41 |
% |
41 |
% |
Risk
assessment testing |
|
3,238 |
|
3,159 |
|
3 |
|
|
8 |
|
|
10 |
|
Cryosurgical systems |
|
3,174 |
|
3,041 |
|
4 |
|
|
8 |
|
|
10 |
|
Molecular
collection systems |
|
16,057 |
|
8,433 |
|
90 |
|
|
40 |
|
|
27 |
|
|
Net product
revenues |
|
39,132 |
|
27,582 |
|
42 |
|
|
97 |
|
|
88 |
|
Other |
|
|
1,044 |
|
3,777 |
|
(72) |
|
|
3 |
|
|
12 |
|
|
Net revenues |
|
$ 40,176 |
|
$ 31,359 |
|
28 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
Dollars |
|
|
|
|
Percentage of Total Net Revenues |
|
Market |
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infectious
disease testing |
|
$ 31,245 |
|
$ 24,317 |
|
28 |
% |
43 |
% |
40 |
% |
Risk
assessment testing |
|
6,368 |
|
6,265 |
|
2 |
|
|
9 |
|
|
10 |
|
Cryosurgical systems |
|
6,237 |
|
6,922 |
|
(10) |
|
|
8 |
|
|
12 |
|
Molecular
collection systems |
|
26,764 |
|
15,323 |
|
75 |
|
|
37 |
|
|
25 |
|
|
Net product
revenues |
|
70,614 |
|
52,827 |
|
34 |
|
|
97 |
|
|
87 |
|
Other |
|
|
2,108 |
|
7,621 |
|
(72) |
|
|
3 |
|
|
13 |
|
|
Net revenues |
|
$ 72,722 |
|
$ 60,448 |
|
20 |
% |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
HIV
Revenues |
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
2016 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
$ 4,965 |
|
$ 5,886 |
|
(16) |
% |
$
8,779 |
|
$
11,588 |
|
(24) |
% |
International |
|
2,025 |
|
1,969 |
|
3 |
|
|
4,669 |
|
2,824 |
|
65 |
|
Domestic OTC |
|
1,894 |
|
1,739 |
|
9 |
|
|
3,436 |
|
3,262 |
|
5 |
|
|
Net
product revenues |
|
$ 8,884 |
|
$ 9,594 |
|
(7) |
% |
$16,884 |
|
$ 17,674 |
|
(4) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
HCV
Revenues |
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
2016 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
$ 2,382 |
|
$ 1,788 |
|
33 |
% |
$
4,091 |
|
$ 3,689 |
|
11 |
% |
International |
|
5,261 |
|
1,428 |
|
268 |
|
|
9,664 |
|
2,430 |
|
298 |
|
|
Net
product revenues |
|
7,643 |
|
3,216 |
|
138 |
|
|
13,755 |
|
6,119 |
|
125 |
|
Amortization of exclusivity payments |
|
- |
|
3,360 |
|
(100) |
|
|
- |
|
6,722 |
|
(100) |
|
|
Net
HCV-related revenues |
|
$ 7,643 |
|
$ 6,576 |
|
16 |
% |
$13,755 |
|
$ 12,841 |
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
Cryosurgical Systems Revenues |
|
2017 |
|
2016 |
|
% Change |
|
2017 |
|
2016 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
professional |
|
$1,445 |
|
$1,145 |
|
26 |
% |
|
$ 2,941 |
|
$ 2,699 |
|
9 |
% |
International professional |
|
243 |
|
211 |
|
15 |
|
|
373 |
|
446 |
|
(16) |
|
Domestic
OTC |
|
347 |
|
345 |
|
1 |
|
|
632 |
|
723 |
|
(13) |
|
International OTC |
|
1,139 |
|
1,340 |
|
(15) |
|
|
2,291 |
|
3,054 |
|
(25) |
|
|
Net product
revenues |
|
$3,174 |
|
$3,041 |
|
4 |
% |
|
$ 6,237 |
|
$ 6,922 |
|
(10) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(Unaudited) |
|
|
|
|
|
|
|
June 30, 2017 |
|
December 31, 2016 |
Assets |
|
|
|
|
|
|
$ 106,703 |
|
$ 109,790 |
Cash and cash
equivalents |
|
Short-term
investments |
|
55,354 |
|
11,160 |
Accounts receivable,
net |
|
26,731 |
|
19,827 |
Inventories |
|
14,548 |
|
11,799 |
Other current
assets |
|
2,363 |
|
3,865 |
Property and equipment,
net |
|
20,291 |
|
20,033 |
Intangible assets,
net |
|
9,343 |
|
10,337 |
Goodwill |
|
19,482 |
|
18,793 |
Other non-current
assets |
|
3,536 |
|
2,331 |
Total
assets |
|
$ 258,351 |
|
$ 207,935 |
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Accounts payable |
|
$ 9,623 |
|
$ 4,633 |
Deferred revenue |
|
1,477 |
|
1,388 |
Other current
liabilities |
|
12,092 |
|
11,314 |
Other non-current
liabilities |
|
3,538 |
|
2,304 |
Deferred income
taxes |
|
2,209 |
|
2,446 |
Stockholders’
equity |
|
229,412 |
|
185,850 |
Total
liabilities and stockholders’ equity |
|
$ 258,351 |
|
$ 207,935 |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
June 30, |
Additional
Financial Data (Unaudited) |
|
2017 |
|
2016 |
|
|
|
|
|
Capital
expenditures |
|
$ 1,567 |
|
$ 2,729 |
Depreciation and
amortization |
|
$ 2,891 |
|
$ 2,738 |
Stock-based
compensation |
|
$ 3,631 |
|
$ 2,942 |
Cash provided by
operating activities |
|
$ 21,704 |
|
$ 16,741 |
|
|
|
|
|
Conference Call
The Company will host a conference call and audio webcast for
analysts and investors to discuss the Company’s 2017 second quarter
financial results, certain business developments and financial
guidance for the third quarter of 2017, beginning today at 5:00
p.m. Eastern Time (2:00 p.m. Pacific Time). On the call will be
Douglas A. Michels, President and Chief Executive Officer, and
Ronald H. Spair, Chief Financial Officer and Chief Operating
Officer. The call will include prepared remarks by management and a
question and answer session.
In order to listen to the conference call, please either dial
844-831-3030 (Domestic) or 315-625-6887 (International) and
reference Conference ID #50993000 or go to OraSure Technologies'
web site, www.orasure.com, and click on the Investor Relations
page. Please click on the webcast link and follow the prompts for
registration and access 10 minutes prior to the call. A replay of
the call will be archived on OraSure Technologies' web site shortly
after the call has ended and will be available for seven days. A
replay of the call can also be accessed until August 9, 2017, by
dialing 855-859-2056 (Domestic) or 404-537-3406 (International) and
entering the Conference ID #50993000.
About OraSure Technologies
OraSure Technologies is a leader in the development, manufacture
and distribution of point-of-care diagnostic and collection devices
and other technologies designed to detect or diagnose critical
medical conditions. Its first-to-market, innovative products
include rapid tests for the detection of antibodies to HIV and HCV
on the OraQuick® platform, oral fluid sample collection,
stabilization and preparation products for molecular diagnostic
applications, and oral fluid laboratory tests for detecting various
drugs of abuse. OraSure's portfolio of products is sold globally to
various clinical laboratories, hospitals, clinics, community-based
organizations and other public health organizations, research and
academic institutions, distributors, government agencies,
physicians' offices, commercial and industrial entities and
consumers. The Company's products enable healthcare providers to
deliver critical information to patients, empowering them to make
decisions to improve and protect their health.
Important Information
This press release contains certain forward-looking statements,
including with respect to expected revenues and earnings/loss per
share. Forward-looking statements are not guarantees of future
performance or results. Known and unknown factors that could cause
actual performance or results to be materially different from those
expressed or implied in these statements include, but are not
limited to: ability to market and sell products, whether
through our internal, direct sales force or third parties; ability
to manufacture products in accordance with applicable
specifications, performance standards and quality requirements;
ability to obtain, and timing and cost of obtaining, necessary
regulatory approvals for new products or new indications or
applications for existing products; ability to comply with
applicable regulatory requirements; ability to effectively resolve
warning letters, audit observations and other findings or comments
from the FDA or other regulators; changes in relationships,
including disputes or disagreements, with strategic partners or
other parties and reliance on strategic partners for the
performance of critical activities under collaborative
arrangements; ability to meet increased demand for the Company’s
products; impact of increased reliance on U.S. government
contracts; failure of distributors or other customers to meet
purchase forecasts, historic purchase levels or minimum purchase
requirements for our products; impact of replacing distributors;
inventory levels at distributors and other customers; ability of
the Company to achieve its financial and strategic objectives and
continue to increase its revenues, including the ability to expand
international sales; ability to identify, complete, integrate and
realize the full benefits of future acquisitions; impact of
competitors, competing products and technology changes; impact of
negative economic conditions, high unemployment levels and poor
credit conditions; reduction or deferral of public funding
available to customers; competition from new or better technology
or lower cost products; ability to develop, commercialize and
market new products; market acceptance of oral fluid testing or
other products; changes in market acceptance of products based on
product performance or other factors, including changes in testing
guidelines, algorithms or other recommendations by the Centers for
Disease Control and Prevention (“CDC”) or other agencies; ability
to fund research and development and other products and operations;
ability to obtain and maintain new or existing product distribution
channels; reliance on sole supply sources for critical products and
components; availability of related products produced by third
parties or products required for use of our products; history of
losses and ability to achieve sustained profitability; ability to
utilize net operating loss carry forwards or other deferred tax
assets; volatility of the Company’s stock price; uncertainty
relating to patent protection and potential patent infringement
claims; uncertainty and costs of litigation relating to patents and
other intellectual property; availability of licenses to patents or
other technology; ability to enter into international manufacturing
agreements; obstacles to international marketing and manufacturing
of products; ability to sell products internationally, including
the impact of changes in international funding sources and testing
algorithms; adverse movements in foreign currency exchange rates;
loss or impairment of sources of capital; ability to meet
financial covenants in credit agreements; ability to attract and
retain qualified personnel; exposure to product liability and other
types of litigation; changes in international, federal or state
laws and regulations; customer consolidations and inventory
practices; equipment failures and ability to obtain needed raw
materials and components; the impact of terrorist attacks and civil
unrest; and general political, business and economic
conditions. These and other factors are discussed more fully
in the Company’s Securities and Exchange Commission (“SEC”)
filings, including our registration statements, Annual Report on
Form 10-K for the year ended December 31, 2016, Quarterly Reports
on Form 10-Q, and other filings with the SEC. Although
forward-looking statements help to provide information about future
prospects, readers should keep in mind that forward-looking
statements may not be reliable. The forward-looking statements are
made as of the date of this press release and OraSure Technologies
undertakes no duty to update these statements.
Company Contact:
Ronald H. Spair
610-882-1820
Investorinfo@orasure.com
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OraSure Technologies (NASDAQ:OSUR)
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From Jun 2024 to Jul 2024
OraSure Technologies (NASDAQ:OSUR)
Historical Stock Chart
From Jul 2023 to Jul 2024