OraSure Technologies Reports 2002 Second Quarter Results
The Company also recorded a net loss of approximately $1.3 million, or ($0.03) per share, for the three months ended June 30, 2002. This compares to a net loss of approximately $450,000, or ($0.01) per share, for the three months ended June 30, 2001.
For the six months ended June 30, 2002, the Company recorded revenues of approximately $15.7 million, down 2% when compared to revenues of $15.9 million for the six months ended June 30, 2001. Product revenues for the six months ended June 30, 2002 were approximately $15.3 million, or 2% higher than the $15.0 million in product revenues recorded during the six months ended June 30, 2001.
The Company recorded a net loss of approximately $2.9 million, or ($0.08) per share, for the six months ended June 30, 2002, compared to a net loss of approximately $1.4 million, or ($0.04) per share, for the comparable period in 2001.
The Company's cash, cash equivalents and short-term investments were approximately $12.3 million and its working capital was approximately $17.0 million at June 30, 2002, compared to $12.4 million in cash, cash equivalents and short-term investments and working capital of $18.2 million at the end of the first quarter of 2002.
"Despite tough economic conditions, OraSure Technologies has made substantial progress towards building long-term stockholder value with nominal impact to our cash balances," said Mike Gausling, President and CEO. "In the second quarter, we moved closer to commercializing the OraQuick(R) rapid HIV 1 test with the receipt of an approvable letter from the FDA and the signing of a co-exclusive distribution agreement with Abbott Laboratories."
Mr. Gausling further stated, "We also worked very hard to help all three of our new Intercept(R) distribution partners install and validate their analytical equipment platforms for the detection of drugs of abuse in an oral fluid sample. We expect to leverage the success of LabOne in the workplace drug testing market with the addition of Quest Diagnostics, Clinical Reference Labs, and Northwest Toxicology. This has increased the field sales force selling Intercept(R) from just three representatives to more than 60 sales representatives and forms a formidable distribution network for rapidly expanding oral fluid drug testing in the future."
As anticipated, the revenue decline for the second quarter was principally due to lower licensing and product development revenues, reduced sales of analytical equipment in the substance abuse testing market, and lower Histofreezer(R) sales.
Partially offsetting these declines were higher sales of the Company's OraSure(R) oral fluid collection device and test kits in the infectious disease testing market, which grew by approximately 25%.
Gross margin for the second quarter of 2002 decreased to approximately 60% from approximately 65% in the second quarter of 2001, primarily as a result of lower licensing and product development revenues and higher than anticipated scrap rates.
Operating expenses remained at approximately $6.1 million in the second quarter of 2002, compared with the second quarter of 2001.
Sales and marketing expenses increased $300,000 to approximately $2.4 million in the second quarter of 2002 from $2.1 million in 2001, primarily as a result of the previously announced consulting fees for the development of strategic marketing and branding plans partially offset by lower travel costs.
The increase in sales and marketing expenses for the second quarter was offset by a decreased rate of spending in research and development, primarily as a result of lower outside consulting costs, and decreased general and administrative spending.
Condensed Financial Data
(In thousands, except per-share data and percentages)
(Unaudited)
------------------ ------------------
Three months ended Six months ended
June 30, June 30,
------------------ ------------------
2002 2001 2002 2001
-------- -------- -------- --------
Results of Operations
Revenues $ 7,930 8,508 15,656 $ 15,912
Cost of products sold 3,200 3,013 6,095 5,707
-------- -------- -------- --------
Gross profit 4,730 5,495 9,561 10,205
Operating expenses
Research & Development 2,210 2,424 4,631 4,590
Sales & Marketing 2,392 2,066 4,380 3,927
General &
Administrative 1,482 1,602 3,566 3,067
Restructuring - - - 450
-------- -------- -------- --------
Total operating
expenses 6,084 6,092 12,577 12,034
-------- -------- -------- --------
Operating loss (1,354) (597) (3,016) (1,829)
-------- -------- -------- --------
Other income (expense),
net 73 153 142 388
-------- -------- -------- --------
Net loss $ (1,281) (444) (2,874) $ (1,441)
======== ======== ======== ========
Basic and diluted net
loss per share $ (0.03) $ (0.01) $ (0.08) $ (0.04)
======== ======== ======== ========
Shares used in
computing basic and
diluted net loss
per share 37,494 36,702 37,464 36,580
======== ======== ======== ========
Three months ended June 30,
---------------------------------------------
Percentage of
Dollars Total Revenues
------------------ % ------------------
Market Revenues 2002 2001 Change 2002 2001
-------- -------- ----- -------- --------
Insurance risk
assessment $ 3,120 $ 3,255 -4% 39% 39%
Infectious disease
testing 1,564 1,277 22% 20% 15%
Substance abuse testing 1,776 1,990 -11% 22% 23%
Physicians' offices
therapies 1,414 1,559 -9% 18% 18%
-------- -------- ----- -------- --------
Product revenues 7,874 8,081 -3% 99% 95%
Licensing and product
development 56 427 -87% 1% 5%
-------- -------- ----- -------- --------
Total revenues $ 7,930 $ 8,508 -7% 100% 100%
======== ======== ===== ======== ========
Six months ended June 30,
---------------------------------------------
Percentage of
Dollars Total Revenues
------------------ % ------------------
Market Revenues 2002 2001 Change 2002 2001
-------- -------- ----- -------- --------
Insurance risk
assessment $ 5,913 $ 6,391 -7% 38% 40%
Infectious disease
testing 3,034 2,652 14% 19% 17%
Substance abuse testing 3,003 3,150 -5% 19% 20%
Physicians' offices
therapies 3,393 2,779 22% 22% 17%
-------- -------- ----- -------- --------
Product revenues 15,343 14,972 2% 98% 94%
Licensing and product
development 313 940 -67% 2% 6%
-------- -------- ----- -------- --------
Total revenues $ 15,656 $ 15,912 -2% 100% 100%
======== ======== ===== ======== ========
Condensed Balance Sheet June 30, December
2002 31, 2001
-------- --------
Assets
------
Cash and short-term investments $ 12,311 $ 15,191
Accounts receivable, net 4,870 6,058
Inventories 4,989 4,445
Other current assets 879 1,114
Property and equipment, net 7,566 7,800
Other non-current assets 2,696 2,677
-------- --------
Total assets $ 33,311 $ 37,285
======== ========
Liabilities and Stockholders' Equity
------------------------------------
Current portion of long-term debt $ 1,001 $ 1,058
Accounts payable 1,529 2,874
Accrued expenses 3,516 3,112
Long-term debt, less current portion 3,143 3,586
Other liabilities 180 114
Stockholders' equity 23,942 26,541
-------- --------
Total liabilities and stockholders' equity $ 33,311 $ 37,285
======== ========
Conference Call/Audio WebcastOraSure Technologies will host a conference call with analysts and an audio webcast to discuss the Company's second quarter 2002 financial results beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today. On the call will be Mike Gausling, Chief Executive Officer, Ronald H. Spair, Chief Financial Officer, and R. Sam Niedbala, Chief Science Officer.
The call will include brief remarks by management and a question and answer session. In addition to the Company's financial performance, the call will cover business developments and certain forward-looking statements.
In order to listen to the conference call, please either dial 888-742-2024 (Domestic) or 706-643-0033 (International), or go to OraSure Technologies' Web site (www.orasure.com) and click on the Investor Info link at the top of the page, at least ten minutes prior to the start of the call, to register and download and install any necessary audio software.
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 1, 2002, by dialing 800-642-1687 (Domestic) or 706-645-9291 (International) and entering the Conference ID #4751370.
The webcast will also be distributed over the CCBN (Corporate Communications Broadcast Network) Investor Distribution Network. Institutional investors can access the call via CCBN's password protected event management site, StreetEvents (www.streetevents.com).
About OraSure TechnologiesOraSure Technologies, Inc. is the market leader for oral fluid diagnostics. The Company develops, manufactures, and markets medical devices and diagnostic products for use by insurance companies, public health agencies, clinical laboratories, physicians' offices, and workplace sites. For more information on the Company, please visit www.orasure.com.
Important InformationThis press release contains certain forward-looking statements, including with respect to financial performance, products, regulatory filings and clearances, markets and product sales. Actual results could be significantly different. Factors that could affect results include the ability to market products; impact of competitors, competing products and technology changes; ability to develop, commercialize and market new products; market acceptance of oral fluid testing products and up-converting phosphor technology products; ability to fund research and development and other projects and operations; ability to obtain and timing of obtaining necessary regulatory approvals; ability to develop product distribution channels; uncertainty relating to patent protection and potential patent infringement claims; ability to enter into international manufacturing agreements; obstacles to international marketing and manufacturing of products; ability to sell products internationally; loss or impairment of sources of capital; exposure to product liability and other types of litigation; changes in international, federal or state laws and regulations; changes in relationships with strategic partners and reliance on strategic partners for the performance of critical activities under collaborative arrangements; changes in accounting practices or interpretation of accounting requirements; customer inventory practices and consolidations; equipment failures and ability to obtain needed raw materials and components; the impact of terrorist attacks and civil unrest; and general business, political and economic conditions. These and other factors are discussed more fully in the Securities and Exchange Commission filings of OraSure Technologies, including its registration statements, its Annual Report on Form 10-K for the year ended December 31, 2001, and its Quarterly Reports on Form 10-Q. Although forward-looking statements help to provide complete 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.
CONTACT: OraSure Technologies, Bethlehem Ronald H. Spair, 610/882-1820, ext. 3279 Investorinfo@orasure.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page.
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