OraSure Technologies Reports 2002 Third Quarter Results; - $3 Million Increase In Cash Flow From Operations -
For the nine months ended September 30, 2002, the Company recorded revenues of $23.8 million, down 3% when compared to revenues of $24.5 million for the nine months ended September 30, 2001. Product revenues for the nine months ended September 30, 2002 were $23.4 million, or 1% higher than the $23.2 million in product revenues recorded during the nine months ended September 30, 2001. The Company recorded a net loss of $3.3 million, or ($0.09) per share, for the nine months ended September 30, 2002, compared to a net loss of $1.4 million, or ($0.04) per share, for the comparable period in 2001. The Company generated $1.2 million in positive cash flow from operations during the third quarter of 2002, compared to a negative $1.8 million in cash used during the comparable quarter of 2001.
The Company's cash, cash equivalents and short-term investments were $13.4 million and its working capital was approximately $17.2 million at September 30, 2002, compared to $12.3 million in cash, cash equivalents and short-term investments and working capital of $17.0 million at the end of the second quarter of 2002.
"Revenues for the third quarter were slightly better than our projections but are expected to grow modestly until we begin to see the full impact of OraQuick(R) and Intercept(R) sales," said Mike Gausling, President and CEO of OraSure Technologies. "In the meantime, we have been aggressively managing expenses and improving cash flow as demonstrated by the $3.0 million positive turnaround in cash flow from operations in the third quarter of 2002 compared to 2001. We are anxiously awaiting final FDA approval of the OraQuick(R) HIV-1 Rapid Antibody Test and will continue to aggressively support the sales ramp-up of the Intercept(R) drug testing service."
Third quarter sales of the Company's OraSure(R) oral fluid collection device and test kits in the infectious disease testing market grew by approximately 20% over the comparable period in 2001. This increase was offset by lower licensing and product development revenues and lower international OraQuick(R) sales.
Gross margin for the third quarter of 2002 decreased to 59% from 67% in the third quarter of 2001, primarily as a result of lower licensing and product development revenues, costs associated with the advanced preparation for OraQuick(R) manufacturing and higher scrap rates.
Operating expenses declined to $5.2 million in the third quarter of 2002, from $5.7 million in the third quarter of 2001, reflecting reductions in all expense categories.
Condensed Financial Data
(In thousands, except per-share data and percentages)
(Unaudited)
------------------ ------------------
Three months ended Nine months ended
September 30, September 30,
------------------ ------------------
2002 2001 2002 2001
-------- -------- -------- --------
Results of Operations
Revenues $ 8,107 $ 8,599 $23,762 $24,510
Cost of products sold 3,350 2,873 9,444 8,579
-------- -------- -------- --------
Gross profit 4,757 5,726 14,318 15,931
Operating expenses
Research & Development 1,890 2,248 6,521 6,838
Sales & Marketing 1,947 2,062 6,328 5,989
General & Administrative 1,321 1,427 4,886 4,494
Restructuring - - - 450
-------- -------- -------- --------
Total operating expenses 5,158 5,737 17,735 17,771
-------- -------- -------- --------
Operating loss (401) (11) (3,417) (1,840)
Other income (expense), net 14 27 156 415
-------- -------- -------- --------
Net income (loss) $ (387) $16 (3,261) $(1,425)
======== ======== ======== ========
Basic and diluted net
income (loss) per share $ (0.01) $ 0.00 $ (0.09) $ (0.04)
======== ======== ======== ========
Weighted average shares:
Basic 37,536 37,057 37,488 36,741
======== ======== ======== ========
Diluted 37,536 39,009 37,488 36,741
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Three months ended September 30,
------------------------------------------
Percentage of
Dollars Total Revenues
------------------ % --------------
Market Revenues 2002 2001 Change 2002 2001
-------- -------- ------ ------ ------
Insurance risk assessment $ 2,987 $ 2,986 0% 37% 35%
Infectious disease testing 1,472 1,604 -8% 18% 18%
Substance abuse testing 1,805 1,692 7% 22% 20%
Physicians' offices
therapies 1,840 1,955 -6% 23% 23%
-------- -------- ------ ------
Product revenues 8,104 8,237 -2% 100% 96%
Licensing and product
development 3 362 -99% 0% 4%
-------- -------- ------ ------
Total revenues $ 8,107 $ 8,599 -6% 100% 100%
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Nine months ended September 30,
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Percentage of
Dollars Total Revenues
------------------ % --------------
Market Revenues 2002 2001 Change 2002 2001
-------- -------- ------ ------
Insurance risk assessment $ 8,900 $ 9,376 -5% 38% 38%
Infectious disease testing 4,505 4,257 6% 19% 18%
Substance abuse testing 4,808 4,841 -1% 20% 20%
Physicians' offices
therapies 5,233 4,733 11% 22% 19%
-------- -------- ------ ------
Product revenues 23,446 23,207 1% 99% 95%
Licensing and product
development 316 1,303 -76% 1% 5%
-------- -------- ------ ------
Total revenues $23,762 $24,510 -3% 100% 100%
======== ======== ====== ======
Condensed Balance Sheet September 30, December 31,
2002 2001
---------- ----------
Assets
Cash and short-term investments $ 13,368 $ 15,191
Accounts receivable, net 4,806 6,058
Inventories 4,583 4,445
Other current assets 577 1,114
Property and equipment, net 7,449 7,800
Other non-current assets 2,583 2,677
---------- ----------
Total assets $ 33,366 $ 37,285
========== ==========
Liabilities and Stockholders' Equity
Current portion of long-term debt $ 1,004 $ 1,058
Accounts payable 2,032 2,874
Accrued expenses 3,083 3,112
Long-term debt, less current portion 3,479 3,586
Other liabilities 114 114
Stockholders' equity 23,654 26,541
---------- ----------
Total liabilities and stockholders' equity $ 33,366 $ 37,285
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Conference Call/Audio WebcastOraSure Technologies will host a conference call with analysts and an audio webcast to discuss the Company's third 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, Ph.D., 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 October 31, 2002, by dialing 800-642-1687 (Domestic) or 706-645-9291 (International) and entering the Conference ID #6115750.
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, Inc. Ronald H. Spair, 610/882-1820 x3279 Investorinfo@orasure.com www.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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