OraSure Announces 2012 Third Quarter Financial Results
Quarterly Highlights
-
Consolidated revenues were
$22.1 million for the third quarter of 2012, a 2% increase from the comparable quarter of 2011. Revenues for the current quarter included$3.3 million from the Company's molecular collection systems subsidiary,DNA Genotek Inc. ("DNAG"), acquired inAugust 2011 . DNAG revenues from theAugust 17, 2011 acquisition date throughSeptember 30, 2011 were$2.0 million . -
Consolidated revenues were
$65.7 million for the nine months endedSeptember 30, 2012 , a 13% increase from the comparable period of 2011. Revenues for the current period included$10.0 million from DNAG operations compared to$2.0 million in the nine months endedSeptember 30 , 2011. -
On
July 3, 2012 , theFDA issued a pre-market approval for the Company's OraQuick® In-Home HIV Test for sale into the over-the-counter ("OTC") market. The OraQuick® In-Home HIV Test can detect antibodies to both HIV-1 and HIV-2 with an oral swab, providing a confidential in-home testing option with results in as little as 20 minutes. This is the first rapid diagnostic test for any infectious disease that has been approved by theFDA for sale over the counter. -
During the last week of
September 2012 , the Company completed its first shipments of its OraQuick® In-Home HIV test to various retailers. No revenue was recorded related to these shipments as revenue will be deferred until consummation of sales to retail customers either in a store or over the internet. Approximately$3.6 million was recorded for this product in accounts receivable and accrued in deferred revenue as ofSeptember 30, 2012 . -
Consolidated net loss for the third quarter of 2012 was
$2.4 million , or$0.04 per share, which compares to a net loss of$3.9 million , or$0.08 per share, for the third quarter of 2011. The third quarter 2011 net loss included$2.1 million of transaction related costs and a$763,000 purchase accounting adjustment associated with the acquisition of DNAG. -
Consolidated net loss for the nine months ended
September 30, 2012 was$9.2 million , or$0.18 per share, which compares to a net loss of$9.0 million , or$0.19 per share, for the nine months endedSeptember 30, 2011 .
"The third quarter included historic achievements for our Company," said
Financial Results
Product revenues for the quarter and the nine month period ended
Licensing and product development revenues for the third quarter of 2012 increased
Consolidated gross margin for the three and nine months ended
Consolidated operating expenses decreased to
The decrease in operating expenses for the third quarter of 2012 was the result of lower clinical trial costs related to the Company's OraQuick® In-Home HIV test and lower general and administrative expenses caused by the absence in the current period of
The increase in operating expense for the nine months ended
For the three and nine months ended
Cash totaled
Fourth Quarter 2012 Outlook
The Company expects total consolidated revenues to range from
Financial Data
Condensed Consolidated Financial Data | ||||
(In thousands, except per-share data) | ||||
Unaudited | ||||
Three months ended | Nine months ended | |||
September 30, | September 30, | |||
2012 | 2011 | 2012 | 2011 | |
Results of Operations | ||||
Revenues | $ 22,115 | $ 21,714 | $ 65,675 | $ 58,191 |
Cost of products sold | 8,227 | 8,120 | 23,356 | 21,070 |
Gross profit | 13,888 | 13,594 | 42,319 | 37,121 |
Operating expenses: | ||||
Research and development | 2,994 | 5,546 | 9,551 | 15,110 |
Sales and marketing | 8,602 | 5,742 | 25,490 | 16,026 |
General and administrative | 5,220 | 6,510 | 17,398 | 15,103 |
Total operating expenses | 16,816 | 17,798 | 52,439 | 46,239 |
Operating loss | (2,928) | (4,204) | (10,120) | (9,118) |
Other expense | (34) | (30) | (267) | (153) |
Loss before income taxes | (2,962) | (4,234) | (10,387) | (9,271) |
Income tax benefit | (527) | (315) | (1,138) | (315) |
Net loss | $ (2,435) | $ (3,919) | $ (9,249) | $ (8,956) |
Loss per share: | ||||
Basic and Diluted | $ (0.04) | $ (0.08) | $ (0.18) | $ (0.19) |
Weighted average shares: | ||||
Basic and Diluted | 54,441 | 47,028 | 50,177 | 46,788 |
Summary of Revenues by Market and Product (Unaudited)
Three Months Ended September 30, | |||||
Dollars | Percentage of Total Revenues | ||||
Market | 2012 | 2011 | % Change | 2012 | 2011 |
Infectious disease testing | $ 10,717 | $ 11,854 | (10)% | 48% | 55% |
Substance abuse testing | 2,331 | 2,765 | (16) | 11 | 13 |
Cryosurgical systems | 4,199 | 3,395 | 24 | 19 | 16 |
Molecular collection systems | 3,353 | 2,022 | 66 | 15 | 9 |
Insurance risk assessment | 1,128 | 1,399 | (19) | 5 | 6 |
Product revenues | 21,728 | 21,435 | 1 | 98 | 99 |
Licensing and product development | 387 | 279 | 39 | 2 | 1 |
Total revenues | $ 22,115 | $ 21,714 | 2% | 100% | 100% |
Nine Months Ended September 30, | |||||
Dollars | Percentage of Total Revenues | ||||
Market | 2012 | 2011 | % Change | 2012 | 2011 |
Infectious disease testing | $ 30,880 | $ 33,100 | (7)% | 47% | 57% |
Substance abuse testing | 7,305 | 9,011 | (19) | 11 | 16 |
Cryosurgical systems | 12,181 | 8,907 | 37 | 19 | 15 |
Molecular collection systems | 9,992 | 2,022 | 394 | 15 | 3 |
Insurance risk assessment | 3,448 | 4,145 | (17) | 5 | 7 |
Product revenues | 63,806 | 57,185 | 12 | 97 | 98 |
Licensing and product development | 1,869 | 1,006 | 86 | 3 | 2 |
Total revenues | $ 65,675 | $ 58,191 | 13% | 100% | 100% |
Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | |||||
OraQuick® Revenues | 2012 | 2011 | % Change | 2012 | 2011 | % Change |
Domestic HIV | $ 8,527 | $ 10,010 | (15)% | $25,106 | $ 28,948 | (13)% |
International HIV | 884 | 878 | 1 | 2,287 | 2,290 | − |
Domestic HCV | 678 | 332 | 104 | 1,958 | 464 | 322 |
International HCV | 241 | 93 | 159 | 734 | 284 | 158 |
Total OraQuick® revenues | $ 10,330 | $ 11,313 | (9)% | $30,085 | $ 31,986 | (6)% |
Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | |||||
Intercept® Revenues | 2012 | 2011 | % Change | 2012 | 2011 | % Change |
Domestic | $ 1,499 | $ 1,947 | (23)% | $ 4,981 | $ 5,909 | (16)% |
International | 279 | 438 | (36) | 616 | 1,472 | (58) |
Total Intercept® revenues | $ 1,778 | $ 2,385 | (25)% | $ 5,597 | $ 7,381 | (24)% |
Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | |||||
Cryosurgical Systems Revenues | 2012 | 2011 | % Change | 2012 | 2011 | % Change |
Professional domestic | $ 2,025 | $ 2,042 | (1)% | $ 5,342 | $ 5,097 | 5% |
Professional international | 453 | 402 | 13 | 1,110 | 989 | 12 |
Over-the-Counter | 1,721 | 951 | 81 | 5,729 | 2,821 | 103 |
Total cryosurgical systems revenues | $ 4,199 | $ 3,395 | 24% | $ 12,181 | $ 8,907 | 37% |
Condensed Consolidated Balance Sheets (Unaudited) | September 30, 2012 | December 31, 2011 |
Assets | ||
$ 89,415 | $ 23,878 | |
Cash | ||
Accounts receivable, net | 19,310 | 17,159 |
Inventories | 12,845 | 9,621 |
Other current assets | 2,037 | 2,178 |
Property and equipment, net | 18,811 | 19,855 |
Intangible assets, net | 28,351 | 30,383 |
Goodwill | 25,682 | 24,740 |
Other non-current assets | 105 | 47 |
Total assets | $ 196,556 | $ 127,861 |
Liabilities and Stockholders' Equity | ||
Current portion of long-term debt | $ -- | $ 7,292 |
Accounts payable | 5,132 | 4,142 |
Accrued expenses | 11,867 | 10,542 |
Other liabilities | 67 | -- |
Deferred income taxes | 4,705 | 5,636 |
Stockholders' equity | 174,785 | 100,249 |
Total liabilities and stockholders' equity | $ 196,556 | $ 127,861 |
Nine months ended | ||
September 30, | ||
Additional Financial Data (Unaudited) | 2012 | 2011 |
Capital expenditures | $ 1,402 | $ 1,806 |
Net proceeds from public offering | $ 70,293 | $ -- |
Acquisition of DNA Genotek, Inc., net of cash acquired | $ -- | $ 49,973 |
Depreciation and amortization | $ 5,455 | $ 3,011 |
Stock based compensation | $ 3,845 | $ 3,016 |
Cash used in operating activities | $ 4,006 | $ 4,079 |
Conference Call
The Company will host a conference call and audio webcast to discuss the Company's 2012 third quarter financial results, business developments and financial guidance for the fourth quarter of 2012, beginning today at
In order to listen to the conference call, please either dial 877-348-9357 (Domestic) or 970-315-0488 (International) and reference Conference ID #51186733, or go to
About
The
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 an 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; 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; failure of distributors or other customers to meet purchase forecasts or minimum purchase requirements for the Company's products; impact of replacing distributors and success of direct sales efforts; inventory levels at distributors and other customers; ability to integrate and realize the full benefits of the Company's acquisition of DNA Genotek; ability of DNA Genotek to achieve its financial and strategic objectives; ability to identify, complete, integrate and realize the full benefits of future acquisitions; impact of competitors, competing products and technology changes; impact of the economic downturn, high unemployment 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, including the OraQuick® In-Home HIV Test; market acceptance of oral fluid testing or other products; changes in market acceptance of products based on product performance, extended shelf life or other factors; 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 product 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 our 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 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 filings, including its registration statements, Annual Report on Form 10-K for the year ended
CONTACT:Ronald H. Spair Chief Financial Officer 610-882-1820 Investorinfo@orasure.com www.orasure.com