0001116463false00011164632023-02-142023-02-14

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 14, 2023

OraSure Technologies, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware		001-16537		36-4370966
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

 

220 East First Street
Bethlehem, Pennsylvania	18015-1360
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: 610-882-1820

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.000001 par value per share		OSUR		The NASDAQ Stock Market LLC

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by a check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

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Item 2.02 – Results of Operations and Financial Condition.

On February 14, 2023, OraSure Technologies, Inc. (the “Company”) issued a press release announcing its consolidated financial results for full year and quarter ended December 31, 2022 and certain other matters. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by reference.

The information in this Item and attached Exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing. The fact that the information and Exhibit are being furnished should not be deemed an admission as to the materiality of any information contained therein. The Company undertakes no duty or obligation to publicly update or revise the information contained in this Current Report or attached Exhibit.

Item 7.01 – Regulation FD Disclosure.

On February 14, 2023, the Company held a webcast conference call with analysts and investors, during which members of the Company’s management team, including Carrie Eglinton Manner, the Company’s President and Chief Executive Officer, and Kenneth J. McGrath, the Company’s Chief Financial Officer, discussed the Company’s consolidated financial results for the full year and quarter ended December 31, 2022, and described certain business developments.

The information in this Item shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such a filing. The fact that the information is being furnished should not be deemed an admission as to the materiality of any information contained therein. The Company undertakes no duty or obligation to publicly update or revise the information contained in this Current Report.

Item 8.01 – Other Events

On February 14, 2023, the Company announced a business restructuring to combine its Molecular Solutions and Diagnostics business units resulting in the elimination of roles impacting approximately 11% of its current non-production workforce. These actions are part of the Company’s efforts toward achieving cashflow breakeven for its core business.

Item 9.01 – Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number		Description
99.1		Press Release, dated February 14, 2023, announcing consolidated financial results of OraSure Technologies, Inc. for the full-year and quarter ended December 31, 2022 and certain other matters.
Exhibit 104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

	ORASURE TECHNOLOGIES, INC.
Date: February 14, 2023	By:	/s/ Carrie Eglinton Manner
		Carrie Eglinton Manner
		President and Chief Executive Officer

 

 

 

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EXHIBIT 99.1

 

Investor Contact: Scott Gleason SVP investor Relations & Corporate Communications (484) 425-0588 sgleason@orasure.com	Media Contact: Amy Koch Sr. Manager Corporate Communications (484) 523-1815 media@orasure.com

 

OraSure Reports 4Q22 Record Revenue of $123.1 Million Growing 94% Year-Over-Year;

Positions for Longer-Term Growth and Profitability

InteliSwab® revenue of $88.9 million in Q4, up 12% sequentially; wins two new federal government contracts extending the tail on InteliSwab® revenue

 

Signs a deal with Quest Diagnostics Genomic Sequencing Services for saliva collection kits

Q4 GAAP EPS of $0.21; Non-GAAP EPS of $0.36

Announces restructuring expected to result in operating expense savings of $15 million to be fully implemented by June 2023; targets achieving cash flow breakeven for core business by end of 2024

Cash balance grows to $111 million, up $9 million from prior quarter

Management to Host Analyst/Investor Call and Webcast Today at 5:00 p.m. ET

BETHLEHEM, PA, February 14, 2023 (GLOBE NEWSWIRE) – OraSure Technologies, Inc. (NASDAQ: OSUR), a leader in point-of-care and home diagnostic tests, specimen collection devices, and microbiome laboratory and analytical services, today announced its financial results for the three months ended December 31, 2022.

 

“This quarter we have delivered clear progress on our transformation journey to Strengthen our foundation. We identified meaningful expense reductions through restructuring our two business units into a single organization, reducing our non-production workforce by 11%, and lowering manufacturing costs. Importantly, this quarter we further increased our cash balance that will help fund investments for our future,” said OraSure President and CEO Carrie Eglinton Manner.

 

She continued, “building from our stronger base, our focus this year is to increasingly Elevate core growth across our product lines by expanding our existing business, driving internal innovation, and targeting key strategic partnerships. We believe our actions will drive the Company to achieving cash flow breakeven for the core business by the end of 2024 while we Accelerate profitable growth.”

 

 

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Financial Highlights

	Three Months Ended													Year Ended
	December 31,													December 31,
	2022				2021				% Change					2022				2021				% Change
Core Diagnostics	$	18,400			$	17,898				3		%		$	70,007			$	67,333				4		%
InteliSwab		88,857				14,770				502					233,666				22,707				929
Total Diagnostics		107,257				32,668				228					303,673				90,040				237
Core Molecular Solutions		15,684				22,936				(32	)				74,147				89,467				(17	)
COVID-19 kits		137				7,964				(98	)				9,659				54,167				(82	)
Total Molecular Solutions		15,821				30,900				(49	)				83,806				143,634				(42	)
Total Revenue	$	123,078			$	63,568				94		%		$	387,479			$	233,674				66		%
	Three Months Ended													Year ended
	December 31,													December 31,
	2022				2021				% Change					2022				2021				% Change
Net revenues	$	123,078			$	63,568				94		%		$	387,479			$	233,674				66		%
Gross profit		49,589				27,133				83					147,637				117,600				26
Gross margin		40	%			43	%								38	%			50	%
Non-GAAP gross profit		50,126				28,685				75					154,464				121,708				27
Non-GAAP gross margin		41	%			45	%								40	%			52	%
Operating income (loss)		13,435				(9,371	)		NM						(22,957	)			(10,164	)		NM
Operating margin		11	%			-15	%								-6	%			-4	%
Non-GAAP operating income (loss)		18,340				(1,336	)		NM						21,726				5,388				303
Non-GAAP operating income (loss)		15	%			-2	%								6	%			2	%
Net income (loss)		15,561				(10,393	)		NM						(17,935	)			(22,998	)			-22
Non-GAAP net income (loss)		26,041				(2,490	)		NM						24,986				(7,847	)			(418	)
GAAP EPS	$	0.21			$	(0.14	)		NM					$	(0.25	)		$	(0.32	)			(23	)
Non-GAAP EPS	$	0.36			$	(0.03	)		NM			%		$	0.34			$	(0.11	)			(416	)	%

NM – not meaningful

 

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Business Restructuring

 

The Company has shared a business restructuring combining its Molecular Solutions and Diagnostics business units into One OraSure. As part of the restructuring, the Company is announcing role eliminations that will affect 11% of its current non-production workforce. The Company believes that, when coupled with additional cost savings, these changes will lead to annualized operating expense reductions of approximately $15 million to be fully implemented by the end of the second quarter of 2023. With additional system changes and manufacturing site consolidation, the Company targets achieving cash flow breakeven on base business (excluding InteliSwab® revenue) by the end of calendar year 2024. The Company’s profitability turnaround enables current cash generation from InteliSwab® to be utilized for innovation and future growth investments.

 

“To support our long-term goals and growth as an organization, we’ve made the difficult decision to eliminate a number of roles,” said OraSure President and CEO Carrie Eglinton Manner. “The changes we made will streamline levels of leadership, centralize core enterprise functions, and prioritize value creation activities. We believe our new operating structure will unlock significant operating efficiencies, foster stronger collaboration across the organization, and allow us to increase our innovation pipeline for growth.”

 

Recent Business Highlights

 

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Financial Guidance

 

The Company is guiding toward 1Q23 revenue of $125 to $130 million representing 85% to 92% growth relative to the first quarter of last year. Given the continued volatility with the COVID-19 market, OraSure is only providing quarterly financial guidance for fiscal year 2023; however, it is anticipating higher revenue in the first half of the year followed by lower sales in the second half as the Company works down its COVID-19 government contracts.

 

 

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Financial Data (Unaudited)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
Results of Operations
Net revenues		$	123,078			$	63,568			$	387,479			$	233,674
Cost of products and services sold			73,489				36,435				239,842				116,074
Gross profit			49,589				27,133				147,637				117,600
Operating expenses:
Research and development			8,999				8,900				36,237				34,170
Sales and marketing			11,363				10,915				49,238				44,751
General and administrative			15,944				16,648				68,206				50,328
Loss on impairment			—				—				17,101				—
Change in fair value of acquisition-related contingent consideration			(152	)			41				(188	)			(1,485	)
Total operating expenses			36,154				36,504				170,594				127,764
Operating income (loss)			13,435				(9,371	)			(22,957	)			(10,164	)
Other income			1,960				443				6,480				872
Income (loss) before income taxes			15,395				(8,928	)			(16,477	)			(9,292	)
Income tax expense (benefit)			(166	)			1,465				1,458				13,706
Net income (loss)		$	15,561			$	(10,393	)		$	(17,935	)		$	(22,998	)
Earnings (loss) per share:
Basic		$	0.21			$	(0.14	)		$	(0.25	)		$	(0.32	)
Diluted		$	0.21			$	(0.14	)		$	(0.25	)		$	(0.32	)
Weighted average shares:
Basic			72,734				72,040				72,505				71,981
Diluted			73,248				72,040				72,505				71,981

 

 

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	Three Months Ended													Year Ended
	December 31,													December 31,
	2022				2021				% Change					2022				2021				% Change
DIAGNOSTICS
Infectious Disease Testing Revenues
Domestic HIV	$	4,126			$	3,773				9		%		$	16,241			$	16,641				(2	)	%
International HIV		7,109				8,626				(18	)				22,571				25,503				(11	)
Net HIV revenues		11,235				12,399				(9	)				38,812				42,144				(8	)
Domestic HCV		1,913				1,301				47					8,353				6,881				21
International HCV		1,274				1,100				16					5,016				4,902				2
Net HCV revenues		3,187				2,401				33					13,369				11,783				13
Net OraQuick® revenues		14,422				14,800				(3	)				52,181				53,927				(3	)
COVID-19		88,857				14,770				502					233,666				22,707				929
Other infectious disease revenues		127				183				(31	)				547				718				(24	)
Total Infectious Disease		103,406				29,753				248					286,394				77,352				270
Risk Assessment		2,483				2,406				3					10,269				9,678				6
Other non-product revenues		1,368				509				169					7,010				3,010				133
TOTAL DIAGNOSTIC NET REVENUE		107,257				32,668				228					303,673				90,040				237
MOLECULAR SOLUTIONS
Genomics	$	9,777			$	14,017				(30	)			$	54,335			$	63,350				(14	)
Microbiome		1,920				2,050				(6	)				7,503				7,944				(6	)
COVID-19		137				7,964				(98	)				9,659				54,167				(82	)
Laboratory services		2,401				3,824				(37	)				7,296				11,840				(38	)
Other product and services revenues		699				1,334				(48	)				2,591				2,566				1
Net product and service revenues		14,934				29,189				(49	)				81,384				139,867				(42	)
Other non-product and service revenues		887				1,711				(48	)				2,422				3,767				(36	)
TOTAL MOLECULAR SOLUTIONS NET REVENUE		15,821				30,900				(49	)				83,806				143,634				(42	)
TOTAL NET REVENUES	$	123,078			$	63,568				94		%		$	387,479			$	233,674				66		%

 

Condensed Consolidated Balance Sheets (Unaudited)
		December 31, 2022				December 31, 2021
Assets
Cash and cash equivalents		$	83,980			$	116,762
Short-term investments			26,867				36,279
Accounts receivable, net			70,797				45,323
Inventories			96,232				53,138
Other current assets			47,842				47,804
Property, plant and equipment, net			59,413				73,435
Intangible assets, net			11,694				14,343
Goodwill			35,104				40,279
Long-term investments			—				17,009
Other noncurrent assets			12,779				16,618
Total assets		$	444,708			$	460,990
Liabilities and Stockholders’ Equity
Accounts payable		$	39,349			$	28,024
Deferred revenue			2,273				2,936
Other current liabilities			28,770				37,104
Other non-current liabilities			10,692				12,393
Stockholders’ equity			363,624				380,533
Total liabilities and stockholders’ equity		$	444,708			$	460,990

 

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Additional Financial Data (Unaudited)		Year Ended
		December 31,
		2022				2021
Capital expenditures		$	4,545			$	48,117
Depreciation and amortization		$	15,308			$	11,658
Stock-based compensation		$	11,622			$	7,807
Cash used in operating activities		$	(47,202	)		$	35,382

 

 

Conference Call

 

The Company will host a conference call and audio webcast for analysts and investors to discuss the Company’s fourth quarter 2022 results and certain business developments, beginning today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). On the call will be Carrie Eglinton Manner, President and Chief Executive Officer, Ken McGrath, Chief Financial Officer, and Scott Gleason, SVP Investor Relations and Corporate Communications. The call will include prepared remarks by management and a question and answer session.

In order to listen to the conference call, please register to obtain a dial in and pin at the following link:

 

https://register.vevent.com/register/BIf712ba49243f46c7a741f490d1ea19a4

 

To listen to the webcast, go to OraSure Technologies’ web site, www.orasure.com, and click on the Investor Relations page. Please click on the webcast link and follow the prompts for registration and access 10 minutes prior to the call. A replay of the call will be archived on OraSure Technologies’ web site shortly after the call has ended and will be available for 14 days. It is recommended to dial-in 15 to 20 minutes prior to the call start to reduce waiting times. If a participant will be listen-only, they are encouraged to listen via the webcast on OraSure’s Investor Relations page.

 

About InteliSwab®

OraSure has received Emergency Use Authorizations (EUA) from the FDA for its InteliSwab® COVID-19 rapid tests. The FDA has authorized the InteliSwab® COVID-19 Rapid Test for Over-the-Counter (OTC) use without a prescription. The FDA has also authorized the InteliSwab® COVID-19 Rapid Test Pro for professional use in point of care (POC) CLIA-waived settings, and the InteliSwab® COVID-19 Rapid Test Rx for Prescription Home Use. These remarkably simple COVID-19 lateral flow tests use samples self-collected from the lower nostrils. The InteliSwab® test’s unique design incorporates a built-in swab fully integrated into the test stick. After users swab their lower nostrils, the test stick is swirled in a pre-measured buffer solution, and the result appears right on the test stick within 30 minutes, with no instruments, batteries, smartphone or laboratory analysis needed to see the result. With less than one minute of “hands-on time,” it is as simple as “Swab, Swirl, and See.”

This product has not been FDA cleared or approved, but it has been authorized by the FDA under an EUA. The emergency use of this product has been authorized only for the detection of proteins from SARS-CoV-2, not for any other viruses or pathogens. This product is only authorized for the duration of the declaration that circumstances exist justifying the authorization of emergency use of in vitro diagnostics for detection and/or diagnosis of COVID-19 under Section 564(b)(1) of the Federal Food, Drug and Cosmetic Act, 21 U.S.C. § 360bbb- 3(b)(1), unless the declaration is terminated or authorization is revoked sooner.

 

Multiple government agencies, including the U.S. Department of Defense (DoD) and Department of Health and Human Services (HHS) are working to address COVID-19 testing needs. Development of the InteliSwab®

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COVID-19 Rapid Test has been funded in whole or in part with federal funds from the Department of Health and Human Services; Administration for Strategic Preparedness and Response; Biomedical Advanced Research and Development Authority, under contract number 75A50120C00061 and 75A50121C00078, utilizing Health Care Enhancement Act (HCEA) funding. The DoD's Defense Assisted Acquisition (DA2) Cell led the manufacturing expansion effort for the InteliSwab® COVID-19 rapid test in coordination with the Department of the Air Force’s Acquisition COVID-19 Task Force (DAF ACT). The manufacturing effort was funded through the American Rescue Plan Act (ARPA) to enable and support domestic industrial base expansion for critical medical resources.

 

About OraSure Technologies

OraSure Technologies empowers the global community to improve health and wellness by providing access to accurate, essential information. OraSure, together with its wholly-owned subsidiaries, DNA Genotek, Diversigen, and Novosanis, provides its customers with end-to-end solutions that encompass tools, services and diagnostics. The OraSure family of companies is a leader in the development, manufacture, and distribution of rapid diagnostic tests, sample collection and stabilization devices, and molecular services solutions designed to discover and detect critical medical conditions. OraSure’s portfolio of products is sold globally to clinical laboratories, hospitals, physician’s offices, clinics, public health and community-based organizations, research institutions, government agencies, pharma, commercial entities and direct to consumers. For more information on OraSure Technologies, please visit www.orasure.com.

 

Forward Looking Statements
 

This press release contains certain forward-looking statements, including with respect to products, product development activities, regulatory submissions and authorizations, revenue growth, cost savings, cash flow, increasing margins and other matters. 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: our ability to satisfy customer demand; ability to reduce our spending rate, capitalize on manufacturing efficiencies and drive profitable growth; ability to achieve the anticipated cost savings as a result of our business restructuring; ability to market and sell products, whether through our internal, direct sales force or third parties; impact of significant customer concentration in the genomics business; failure of distributors or other customers to meet purchase forecasts, historic purchase levels or minimum purchase requirements for our products; 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; ability to effectively resolve warning letters, audit observations and other findings or comments from the U.S. Food and Drug Administration (“FDA”) or other regulators; the impact of the novel coronavirus (“COVID-19”) pandemic on the Company's business, supply chain, labor force, ability to successfully develop new products, validate the expanded use of existing collector products, receive necessary regulatory approvals and authorizations and commercialize such products for COVID-19 testing, and demand for our COVID-19 testing products ; 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; ability to meet increased demand for the Company’s products; impact of replacing distributors; inventory levels at distributors and other customers; ability of the Company to achieve its financial and strategic objectives and continue to increase its revenues, including the ability to expand international sales and the

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ability to continue to reduce costs; impact of competitors, competing products and technology changes; 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; market acceptance of oral fluid or urine testing, collection or other products; market acceptance and uptake of microbiome informatics, microbial genetics technology and related analytics services; changes in market acceptance of products based on product performance or other factors, including changes in testing guidelines, algorithms or other recommendations by the Centers for Disease Control and Prevention (“CDC”) or other agencies; 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; impact of contracting with the U.S. government; impact of negative economic conditions; ability to maintain sustained profitability; ability to utilize net operating loss carry forwards or other deferred tax assets; volatility of the Company’s 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 attract and 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, civil unrest, hostilities and war ; and general political, business and economic conditions, including inflationary pressures. These and other factors that could affect our results are discussed more fully in our SEC filings, including our registration statements, Annual Report on Form 10-K for the year ended December 31, 2021, Quarterly Reports on Form 10-Q, and other filings with the SEC. Although forward-looking statements help to provide information about future prospects, readers should keep in mind that forward-looking statements may not be reliable. Readers are cautioned not to place undue reliance on the forward-looking statements. The forward-looking statements are made as of the date of this press release and OraSure Technologies undertakes no duty to update these statements.

Statement Regarding Use of Non-GAAP Financial Measures

In this press release, the company’s financial results and financial guidance are provided in accordance with accounting principles generally accepted in the United States (GAAP) and using certain non-GAAP financial measures, including non-GAAP gross margin, non-GAAP operating income (loss), and non-GAAP earnings (loss) per share. Management believes that presentation of operating results using these non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the company’s core operating results and comparison of operating results across reporting periods, while excluding certain expenses that may not be indicative of the Company’s recurring core business operating results. In addition, management believes these non-GAAP financial measures are useful to investors both because they (1) allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) are used by OraSure’s institutional investors and the analysis community to help them analyze the health of OraSure’s business. Management also uses non-GAAP financial measures to establish budgets and to manage the company’s business. A reconciliation of the GAAP financial results to non-GAAP financial results is included in the schedules below and a description of the adjustments made to the GAAP financial measures is included at the end of the schedules.

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The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Non-GAAP financial results are reported in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Further, non-GAAP financial measures, even if similarly titled, may not be calculated in the same manner by all companies, and therefore should not be compared.

OraSure Technologies GAAP to Non-GAAP Reconciliation ($ in 000's)
	Three Months Ended								Year Ended
	December 31,								December 31,
	2022				2021				2022				2021
Revenue	$	123,078			$	63,568			$	387,479			$	233,674
GAAP Cost of Goods Sold	$	73,489				36,435				239,842				116,074
GAAP Gross Margin		40	%			43	%			38	%			50	%
Stock compensation		140				162				331				572
Amortization of acquisition-related intangible assets		132				132				528				528
Transformation related expenses		265				-				1,599				-
Inventory reserve for excess levels		-				1,258				4,369				3,008
Non-GAAP Cost of Goods Sold		72,952				34,883				233,015				111,966
Non-GAAP Gross Margin		40.7	%			45.1	%			39.9	%			52.1	%
GAAP Operating Income (Loss)		13,435				(9,371	)			(22,957	)			(10,164	)
Stock compensation		2,349				2,020				9,154				7,177
Amortization of acquisition-related intangible assets		467				707				1,937				2,843
Inventory reserve for excess levels		-				1,258				4,369				3,008
Loss on impairment		-				-				17,101				-
Transformation related expenses		520				1,200				6,191				1,200
Severance expense		300				2,683				3,850				2,683
Strategic alternative costs		-				126				848				126
Government grant accounting		1,422				-				1,422				-
Change in fair value of acquisition-related contingent consideration		(152	)			41				(188	)			(1,485	)
Non-GAAP Operating Income (Loss)		18,340				(1,336	)			21,726				5,388
GAAP Net Income (Loss)		15,561				(10,393	)			(17,935	)			(22,998	)
Stock compensation		2,349				2,020				9,154				7,177
Amortization of acquisition-related intangible assets		467				707				1,937				2,843
Inventory reserve for excess levels		-				1,258				4,369				3,008
Loss on impairment		-				-				17,101				-
Transformation related expenses		520				1,200				6,191				1,200
Severance expense		300				2,683				3,850				2,683
Strategic alternative costs		-				126				848				126
Change in fair value of acquisition-related contingent consideration		(152	)			41				(188	)			(1,485	)
Tax effect of Non-GAAP adjustments		6,997				(132	)			(340	)			(401	)
Non-GAAP Net Income (Loss)	$	26,041			$	(2,490	)		$	24,986			$	(7,847	)
GAAP Earnings (Loss) Per Share:	$	0.21			$	(0.14	)		$	(0.25	)		$	(0.32	)
Non-GAAP Earnings (Loss) Per Share:	$	0.36			$	(0.03	)		$	0.34			$	(0.11	)
Diluted Shares Outstanding		73,248				72,040				72,505				71,981

Following is a description of the adjustments made to GAAP financial measures:

10

 

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11

 

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