OraSure Announces 2013 First Quarter Financial Results
Quarterly Highlights
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Consolidated net revenues were
$21.2 million for the first quarter of 2013, a 1% increase from the comparable quarter of 2012. Net product revenues increased 6% primarily due to sales of the Company's OraQuick® In-Home HIV test and higher sales from the Company's molecular collection systems subsidiary, DNA Genotek ("DNAG").
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Included in the 2013 first quarter net revenues were
$1.5 million in gross sales of the OraQuick® In-Home HIV test, which were reduced by customer allowances for cooperative advertising, cash discounts and other allowances, resulting in net revenues of$1.4 million recorded for the period. Most revenue for this product is currently recognized upon the consummation of a sale to a retail customer either in a store or over the internet.
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Net revenues generated by DNAG during the first quarter of 2013 were
$3.9 million , a 19% increase from the comparable period in 2012. This increase was primarily the result of higher sales to commercial customers.
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Consolidated net loss for the first quarter of 2013 was
$10.2 million , or$0.18 per share, which compares to a net loss of$3.3 million , or$0.07 per share, for the first quarter of 2012. The net loss for the first quarter of 2013 included$6.9 million in advertising and promotional expenses for the Company's newly-launched OraQuick® In-Home HIV test.
"We are pleased to see the first quarter performance by our molecular collection systems business and the increasing sales of our OraQuick® In-Home HIV test," said
Financial Results
Consolidated net product revenues for the quarter increased 6%, primarily as a result of the higher sales of the Company's molecular collection systems, infectious disease testing, and substance abuse testing products. These increases were partially offset by lower sales of the Company's cryosurgical systems and insurance risk assessment products.
Consolidated licensing and product development revenues for the first quarter of 2013 decreased to
Consolidated gross margin for the three months ended
Consolidated operating expenses increased to
For the three months ended
Cash totaled
Second Quarter 2013 Outlook
The Company expects consolidated net revenues to range from
Financial Data
| Condensed Consolidated Financial Data | ||
| (In thousands, except per-share data) | ||
| Unaudited | ||
| Three months ended | ||
| March 31, | ||
| 2013 | 2012 | |
| Results of Operations | ||
| Net revenues | $ 21,164 | $ 20,944 |
| Cost of products sold | 9,135 | 7,212 |
| Gross profit | 12,029 | 13,732 |
| Operating expenses: | ||
| Research and development | 3,357 | 3,444 |
| Sales and marketing | 13,874 | 7,874 |
| General and administrative | 5,387 | 6,066 |
| Total operating expenses | 22,618 | 17,384 |
| Operating loss | (10,589) | (3,652) |
| Other expense | (47) | (121) |
| Loss before income taxes | (10,636) | (3,773) |
| Income tax benefit | (410) | (521) |
| Net loss | $ (10,226) | $ (3,252) |
| Loss per share: | ||
| Basic and Diluted | $ (0.18) | $ (0.07) |
| Weighted average shares: | ||
| Basic and Diluted | 55,449 | 47,807 |
| Summary of Revenues by Market and Product (Unaudited) | |||||
| Three Months Ended March 31, | |||||
|
Dollars |
Percentage of Total Net Revenues |
||||
| Market |
2013 |
2012 |
% Change |
2013 |
2012 |
| Infectious disease testing | $ 10,687 | $ 9,776 | 9% | 49% | 47% |
| Substance abuse testing | 2,249 | 2,087 | 8 | 11 | 10 |
| Cryosurgical systems | 3,085 | 3,478 | (11) | 15 | 16 |
| Molecular collection systems | 3,932 | 3,298 | 19 | 19 | 16 |
| Insurance risk assessment | 1,009 | 1,099 | (8) | 5 | 5 |
| Net product revenues | 20,962 | 19,738 | 6 | 99 | 94 |
| Licensing and product development | 202 | 1,206 | (83) | 1 | 6 |
| Net revenues | $ 21,164 | $ 20,944 | 1% | 100% | 100% |
| Three Months Ended | |||
| March 31, | |||
| OraQuick® Revenues |
2013 |
2012 |
% Change |
| Domestic HIV | $ 7,672 | $ 8,148 | (6)% |
| International HIV | 554 | 660 | (16) |
| Domestic HIV OTC | 1,442 | -- | N/A |
| Domestic HCV | 428 | 536 | (20) |
| International HCV | 240 | 282 | (15) |
| Net OraQuick® revenues | $ 10,336 | $ 9,626 | 7% |
| Three Months Ended | |||
| March 31, | |||
| Intercept® Revenues |
2013 |
2012 |
% Change |
| Domestic | $ 1,274 | $ 1,523 | (16)% |
| International | 388 | 46 | 743 |
| Net Intercept® revenues | $ 1,662 | $ 1,569 | 6% |
| Three Months Ended | |||
| March 31, | |||
| Cryosurgical Systems Revenues |
2013 |
2012 |
% Change |
| Professional domestic | $ 891 | $ 1,371 | (35)% |
| Professional international | 348 | 287 | 21 |
| Over-the-Counter | 1,846 | 1,820 | 1 |
| Net cryosurgical systems revenues | $ 3,085 | $ 3,478 | (11)% |
| Condensed Consolidated Balance Sheets (Unaudited) | March 31, 2013 | December 31, 2012 |
| Assets | ||
| Cash | $ 79,276 | $ 87,888 |
| Accounts receivable, net | 16,955 | 17,545 |
| Inventories | 13,056 | 12,758 |
| Other current assets | 3,599 | 2,212 |
| Property and equipment, net | 18,297 | 18,546 |
| Intangible assets, net | 25,749 | 27,207 |
| Goodwill | 24,823 | 25,445 |
| Other non-current assets | 281 | 124 |
| Total assets | $ 182,036 | $ 191,725 |
| Liabilities and Stockholders' Equity | ||
| Accounts payable | $ 5,622 | $ 3,380 |
| Deferred revenue | 5,611 | 5,580 |
| Accrued expenses | 6,756 | 7,960 |
| Other non-current liabilities | 249 | 89 |
| Deferred income taxes | 3,881 | 4,401 |
| Stockholders' equity | 159,917 | 170,315 |
| Total liabilities and stockholders' equity | $ 182,036 | $ 191,725 |
| Three months ended | ||
| March 31, | ||
| Additional Financial Data (Unaudited) | 2013 | 2012 |
| Capital expenditures | $ 480 | $ 306 |
| Depreciation and amortization | $ 1,602 | $ 1,809 |
| Stock based compensation | $ 1,394 | $ 1,192 |
| Cash used in operating activities | $ 7,674 | $ 1,356 |
Conference Call
The Company will host a conference call and audio webcast to discuss the Company's 2013 first quarter financial results, business developments and financial guidance for the second quarter of 2013, 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 #42321505 or go to
About
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; 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 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 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: Company Contact:
Ronald H. Spair
Chief Financial Officer
610-882-1820
Investorinfo@orasure.com
www.orasure.com
