OraSure Announces 2013 Third Quarter Financial Results
Financial Highlights
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Consolidated net revenues for the third quarter of 2013 were
$24.7 million , a 12% increase from the comparable quarter of 2012. Consolidated net revenues for the nine months endedSeptember 30, 2013 were$70.2 million , a 7% increase from the comparable period of 2012. During the current quarter and nine month period, net product revenues increased 13% and 9%, respectively, compared to the year ago periods. These increases were primarily due to sales of the Company's OraQuick® In-Home HIV test and record revenues from the Company's molecular collection systems subsidiary, DNA Genotek ("DNAG").
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Net revenues for the third quarter and first nine months of 2013 included
$1.9 million and$5.6 million in gross sales of the OraQuick® In-Home HIV test, respectively. These gross sales were reduced by customer allowances for cooperative advertising, cash discounts and other allowances, resulting in net revenues of$1.8 million and$5.2 million recorded in each respective period. There were no sales recorded for this product in the comparable 2012 periods.
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Net revenues generated by DNAG during the third quarter of 2013 were
$5.0 million , a 48% increase from the comparable period in 2012. DNAG net revenues during the nine months endedSeptember 30, 2013 were$13.6 million , a 36% increase from the comparable period in 2012. The increase in both periods was primarily the result of higher sales to commercial customers.
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Consolidated net loss for the third quarter of 2013 was
$1.9 million , or$0.03 per share, which compares to a net loss of$2.4 million , or$0.04 per share, for the third quarter of 2012. Consolidated net loss for the nine months endedSeptember 30, 2013 was$17.4 million , or$0.31 per share, which compares to a net loss of$9.2 million , or$0.18 per share, for the comparable period of 2012. The net loss for the third quarter and first nine months of 2013 included$1.9 million and$14.2 million in advertising and promotional expenses, respectively, associated with the Company's OraQuick® In-Home HIV test.
"We are pleased with the Company's record revenue performance for the third quarter," said
Financial Results
Consolidated net product revenues for the third quarter and nine month periods of 2013 increased 13% and 9%, respectively, primarily as a result of higher sales of the Company's infectious disease testing and molecular collection systems products. These increases were partially offset by lower sales of the Company's substance abuse testing, cryosurgical systems and insurance risk assessment products.
Consolidated licensing and product development revenues for the third quarter of 2013 decreased to
Consolidated gross margin for the three and nine months ended
Consolidated operating expenses remained relatively flat at
For the three and nine months ended
The Company's cash balance totaled
Fourth 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 | Nine months ended | |||
September 30, | September 30, | |||
2013 | 2012 | 2013 | 2012 | |
Results of Operations | ||||
Net revenues | $ 24,671 | $ 22,115 | $ 70,172 | $ 65,675 |
Cost of products sold | 9,738 | 8,227 | 28,711 | 23,356 |
Gross profit | 14,933 | 13,888 | 41,461 | 42,319 |
Operating expenses: | ||||
Research and development | 2,670 | 2,994 | 8,720 | 9,551 |
Sales and marketing | 8,981 | 8,602 | 35,224 | 25,490 |
General and administrative | 5,342 | 5,220 | 15,742 | 17,398 |
Total operating expenses | 16,993 | 16,816 | 59,686 | 52,439 |
Operating loss | (2,060) | (2,928) | (18,225) | (10,120) |
Other income (expense) | 41 | (34) | 36 | (267) |
Loss before income taxes | (2,019) | (2,962) | (18,189) | (10,387) |
Income tax benefit | (127) | (527) | (786) | (1,138) |
Net loss | $ (1,892) | $ (2,435) | $ (17,403) | $ (9,249) |
Loss per share: | ||||
Basic and Diluted | $ (0.03) | $ (0.04) | $ (0.31) | $ (0.18) |
Weighted average shares: | ||||
Basic and Diluted | 55,592 | 54,441 | 55,534 | 50,177 |
Summary of Revenues by Market and Product (Unaudited) | |||||
Three Months Ended September 30, | |||||
Dollars |
Percentage of Total Net Revenues |
||||
Market | 2013 | 2012 | % Change | 2013 | 2012 |
Infectious disease testing | $ 12,873 | $ 10,718 | 20% | 52 | 48% |
Substance abuse testing | 2,092 | 2,331 | (10) | 8 | 11 |
Cryosurgical systems | 3,649 | 4,199 | (13) | 15 | 19 |
Molecular collection systems | 4,964 | 3,353 | 48 | 20 | 15 |
Insurance risk assessment | 946 | 1,128 | (16) | 4 | 5 |
Net product revenues | 24,524 | 21,729 | 13 | 99 | 98 |
Licensing and product development | 147 | 386 | (62) | 1 | 2 |
Net revenues | $ 24,671 | $ 22,115 | 12% | 100% | 100% |
Nine Months Ended September 30, | |||||
Dollars |
Percentage of Total Net Revenues |
||||
Market | 2013 | 2012 |
% Change |
2013 | 2012 |
Infectious disease testing | $ 35,526 | $ 30,880 | 15% | 51% | 47% |
Substance abuse testing | 6,455 | 7,305 | (12) | 9 | 11 |
Cryosurgical systems | 10,910 | 12,181 | (10) | 16 | 19 |
Molecular collection systems | 13,550 | 9,992 | 36 | 19 | 15 |
Insurance risk assessment | 3,108 | 3,448 | (10) | 4 | 5 |
Net product revenues | 69,549 | 63,806 | 9 | 99 | 97 |
Licensing and product development | 623 | 1,869 | (67) | 1 | 3 |
Net revenues | $ 70,172 | $ 65,675 | 7% | 100% | 100% |
Three Months Ended | Nine Months Ended | |||||
September 30 , | September 30, | |||||
OraQuick® Revenues |
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
Domestic HIV | $ 8,093 | $ 8,527 | (5)% | $23,854 | $ 25,106 | (5)% |
International HIV | 1,157 | 884 | 31 | 2,457 | 2,287 | 7 |
Domestic HIV OTC | 1,762 | -- | N/A | 5,196 | -- | N/A |
Domestic HCV | 653 | 678 | (4) | 1,772 | 1,958 | (9) |
International HCV | 924 | 241 | 283 | 1,409 | 734 | 92 |
Net OraQuick® revenues | $ 12,589 | $ 10,330 | 22% | $34,688 | $ 30,085 | 15% |
Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | |||||
Intercept® Revenues |
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
Domestic | $ 1,495 | $ 1,499 | 0% | $ 4,240 | $ 4,981 | (15)% |
International | 29 | 279 | (90) | 385 | 616 | (38) |
Net Intercept® revenues | $ 1,524 | $ 1,778 | (14)% | $ 4,625 | $ 5,597 | (17)% |
Three Months Ended | Nine Months Ended | |||||
September 30, | September 30, | |||||
Cryosurgical Systems Revenues |
2013 |
2012 |
% Change |
2013 |
2012 |
% Change |
Professional domestic | $ 1,803 | $ 2,025 | (11)% | $ 4,192 | $ 5,342 | (22)% |
Professional international | 435 | 453 | (4) | 1,039 | 1,110 | (6) |
Over-the-Counter | 1,411 | 1,721 | (18) | 5,679 | 5,729 | (1) |
Net cryosurgical systems revenues | $ 3,649 | $ 4,199 | (13)% | $ 10,910 | $ 12,181 | (10)% |
Condensed Consolidated Balance Sheets (Unaudited) | September 30, 2013 | December 31, 2012 |
Assets | ||
$ 82,590 | $ 87,888 | |
Cash | ||
Accounts receivable, net | 14,292 | 17,545 |
Inventories | 12,000 | 12,758 |
Other current assets | 2,516 | 2,212 |
Property and equipment, net | 17,989 | 18,546 |
Intangible assets, net | 23,701 | 27,207 |
Goodwill | 24,510 | 25,445 |
Other non-current assets | 614 | 124 |
Total assets | $ 178,212 | $ 191,725 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 3,859 | $ 3,380 |
Deferred revenue | 4,472 | 5,580 |
Accrued expenses | 10,995 | 7,960 |
Other non-current liabilities | 539 | 89 |
Deferred income taxes | 3,456 | 4,401 |
Stockholders' equity | 154,891 | 170,315 |
Total liabilities and stockholders' equity | $ 178,212 | $ 191,725 |
Nine months ended | ||
September 30, | ||
Additional Financial Data (Unaudited) | 2013 | 2012 |
Capital expenditures | $ 1,696 | $ 1,402 |
Depreciation and amortization | $ 4,846 | $ 5,455 |
Stock based compensation | $ 4,187 | $ 3,845 |
Cash used in operating activities | $ 3,142 | $ 4,006 |
Conference Call
The Company will host a conference call and audio webcast to discuss the Company's 2013 third quarter financial results, business developments and financial guidance for the fourth 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 #87563319 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 our 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 and continue to increase its revenues; ability to identify, complete, integrate and realize the full benefits of future acquisitions; impact of competitors, competing products and technology changes; impact of negative economic conditions and high unemployment; 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 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:Ronald H. Spair Chief Financial Officer 610-882-1820 Investorinfo@orasure.com www.orasure.com