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SEC/Sec. 16 Filings

8-K
ORASURE TECHNOLOGIES INC filed this Form 8-K on 08/08/2018
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Consolidated net income for the second quarter of 2018 was $4.1 million, or $0.07 per share on a fully diluted basis, which compares to consolidated net income of $5.4 million, or $0.09 per share on a fully diluted basis, for the second quarter of 2017. Consolidated net income for the six months ended June 30, 2018 was $2.0 million, or $0.03 per share on a fully diluted basis, which compares to consolidated net income of $17.9 million, or $0.30 per share on a fully diluted basis, for the comparable period of 2017. Consolidated net income for the current quarter and year to date period included $2.2 million and $8.6 million, respectively, of transition costs associated with the retirement of the Company’s Chief Executive Officer and Chief Financial Officer and the hiring of their successors.  These transition costs approximated $0.04 and $0.14 per share, respectively, for the three and six month periods ended June 30, 2018, and primarily consisted of non-cash stock compensation charges. Consolidated net income for the six months ended June 30, 2017 included a $12.5 million gain related to the settlement of litigation against Ancestry.com DNA and its contract manufacturer.  This gain was accounted for as a reduction of operating expenses and approximated $0.16 per share on a fully diluted after-tax basis in that period.

 

Cash and investments totaled $181.2 million at June 30, 2018.

“Our financial results for the second quarter of 2018 exceeded expectations and continued the solid performance started in Q1,” said Dr. Stephen S. Tang, President and CEO of OraSure Technologies.  “Continued strong international sales of our HIV Self-Test and another strong quarter by our molecular collections business were the primary drivers of this performance.  We expect that our HIV Self-Test and molecular businesses will continue to be key growth contributors for the rest of 2018.”

Financial Results

Consolidated net product revenues for the second quarter of 2018 decreased 1% from the comparable period of 2017, primarily as a result of lower sales of the Company’s OraQuick® HCV and cryosurgical systems products and lower domestic sales of the professional OraQuick® HIV test, partially offset by higher international sales of the OraQuick® HIV Self-Test and higher sales of the Company’s molecular collections products.

Consolidated net product revenues for the first six months of 2018 increased 9% over the comparable period of 2017, primarily as a result of higher sales of the Company’s molecular collection systems products and higher international sales of the OraQuick® HIV Self-Test, partially offset by lower sales of the Company’s HCV product, lower domestic sales of the professional OraQuick® HIV test and lower sales of the Company’s cryosurgical systems products.

Sales of the OraQuick® HIV Self-Test for the three and six months ended June 30, 2018 included $1.7 million and $2.7 million, respectively, of support payments under the Company’s charitable support agreement with the Bill & Melinda Gates Foundation (“Gates Foundation”).

Consolidated other revenues were $4.8 million and $1.0 million for the second quarter of 2018 and 2017, respectively. Consolidated other revenues were $8.5 million and $2.1 million for the first six months of 2018 and 2017, respectively.  Other revenues in the second quarter of 2018 included royalty income of $2.1 million associated with a litigation settlement agreement, Ebola and Zika-related funding received from the U.S. Biomedical Advanced Research Development Authority (“BARDA”) of $1.9 million and cost reimbursement under the Company’s charitable support agreement with the Gates Foundation of $795,000, which is separate from the support payments mentioned above. Other revenues in the first six months of 2018 included royalty income from the litigation settlement of $3.7 million, BARDA funding of $3.5 million, and cost reimbursement from the Gates Foundation of $1.3 million. Other revenues in the second quarter and first six months of 2017 consisted only of BARDA funding.

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