OraSure Announces 2014 First Quarter Financial Results
Financial Highlights
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Consolidated net revenues for the first quarter of 2014 were
$23.5 million , an 11% increase from the comparable quarter of 2013. Net product revenues increased 12% primarily due to higher revenues from the Company's molecular collection systems subsidiary, DNA Genotek ("DNAG"), and higher sales of the Company's OraQuick® HCV test, cryosurgical systems products, and OraQuick® In-Home HIV test. -
Net revenues generated by DNAG during the first quarter of 2014 were
$5.8 million , a 46% increase from the comparable period in 2013. This increase was the result of higher sales to both commercial and academic customers. -
Net revenues for the Company's OraQuick® rapid HCV test reached
$1.6 million for the first quarter of 2014, an increase of 133% from the comparable 2013 period. This growth reflects increasing demand for the product in both the domestic and international markets. -
Gross sales of the Company's OraQuick® In-Home HIV test were
$2.2 million for the first quarter of 2014 and$1.5 million in the first quarter of 2013. These gross sales were reduced by customer allowances for cooperative advertising, cash discounts and other allowances, resulting in net revenues of$2.0 million and$1.4 million recorded in each respective period. Revenues for these periods were not recorded using the same revenue recognition policy. InDecember 2013 , the Company changed its policy from recognizing revenue upon consummation of a purchase by the consumer to recognizing revenue upon shipment to the retailer or distributor. Based on available point-of-sale data, unit purchases by consumers increased approximately 22% in the first quarter of 2014 compared to the first quarter of 2013. -
Net cryosurgical systems revenues in the first quarter of 2014 were
$4.0 million , a 29% increase over the first quarter of 2013. This increase was primarily due to higher sales in both the U.S. professional market and the international over-the-counter ("OTC") market. -
Consolidated net loss for the first quarter of 2014 was
$5.6 million , or$0.10 per share, which compares to a net loss of$10.2 million , or$0.18 per share, for the first quarter of 2013. The improvement in net loss for the quarter resulted primarily from the higher revenues and lower sales and marketing expenses.
"Solid revenue growth for the first quarter was in line with our projections and our bottom line performance was better than expected," said
Financial Results
Consolidated net product revenues for the first quarter of 2014 increased 12%, primarily as a result of the higher sales of the Company's molecular collection systems, infectious disease testing, and cryosurgical systems products. These increases were partially offset by lower sales of the Company's substance abuse testing products largely in the international markets and lower sales of insurance risk assessment products.
The Company had no consolidated licensing and product development revenues for the first quarter of 2014 as a result of the expiration of certain patents licensed to a third party. This compares to
Consolidated gross margin for the three months ended
Consolidated operating expenses decreased to
For the three months ended
The Company's cash balance totaled
Second Quarter 2014 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, | ||
2014 | 2013 | |
Results of Operations | ||
Net revenues | $ 23,537 | $ 21,164 |
Cost of products sold | 9,610 | 9,135 |
Gross profit | 13,927 | 12,029 |
Operating expenses: | ||
Research and development | 2,481 | 3,357 |
Sales and marketing | 11,340 | 13,874 |
General and administrative | 5,724 | 5,387 |
Total operating expenses | 19,545 | 22,618 |
Operating loss | (5,618) | (10,589) |
Other income (expense) | 118 | (47) |
Loss before income taxes | (5,500) | (10,636) |
Income tax expense (benefit) | 131 | (410) |
Net loss | $ (5,631) | $ (10,226) |
Loss per share: | ||
Basic and Diluted | $ (0.10) | $ (0.18) |
Weighted average shares: | ||
Basic and Diluted | 55,762 | 55,449 |
Summary of Revenues by Market and Product (Unaudited)
Three Months Ended March 31, | |||||
Dollars | Percentage of Total Net Revenues | ||||
Market | 2014 | 2013 | % Change | 2014 | 2013 |
Infectious disease testing | $ 11,064 | $ 10,687 | 4% | 47% | 49% |
Substance abuse testing | 1,830 | 2,249 | (19) | 8 | 11 |
Cryosurgical systems | 3,967 | 3,085 | 29 | 17 | 15 |
Molecular collection systems | 5,759 | 3,932 | 46 | 24 | 19 |
Insurance risk assessment | 917 | 1,009 | (9) | 4 | 5 |
Net product revenues | 23,537 | 20,962 | 12 | 100 | 99 |
Licensing and product development | -- | 202 | (100) | -- | 1 |
Net revenues | $ 23,537 | $ 21,164 | 11% | 100% | 100% |
Three Months Ended | |||
March 31, | |||
OraQuick® Revenues | 2014 | 2013 | % Change |
Domestic HIV | $ 6,618 | $ 7,672 | (14)% |
International HIV | 558 | 554 | 1 |
Domestic HIV OTC | 1,953 | 1,442 | 35 |
Net HIV revenues | 9,129 | 9,668 | (6) |
Domestic HCV | 663 | 428 | 55 |
International HCV | 896 | 240 | 273 |
Net HCV revenues | 1,559 | 668 | 133 |
Net OraQuick® revenues | $ 10,688 | $ 10,336 | 3% |
Three Months Ended | |||
March 31, | |||
Intercept® Revenues | 2014 | 2013 | % Change |
Domestic | $ 1,250 | $ 1,404 | (11)% |
International | 40 | 258 | (84) |
Net Intercept® revenues | $ 1,290 | $ 1,662 | (22)% |
Three Months Ended | |||
March 31, | |||
Cryosurgical Systems Revenues | 2014 | 2013 | % Change |
Domestic professional | $ 1,542 | $ 891 | 73% |
International professional | 310 | 348 | (11) |
International over-the-counter | 2,115 | 1,846 | 15 |
Net cryosurgical systems revenues | $ 3,967 | $ 3,085 | 29% |
Condensed Consolidated Balance Sheets (Unaudited) | ||
March 31, 2014 | December 31, 2013 | |
Assets | ||
Cash | $ 84,193 | $ 93,191 |
Accounts receivable, net | 13,287 | 12,957 |
Inventories | 11,994 | 11,444 |
Other current assets | 2,281 | 1,983 |
Property and equipment, net | 17,826 | 17,933 |
Intangible assets, net | 20,659 | 22,226 |
Goodwill | 22,860 | 23,782 |
Other non-current assets | 980 | 729 |
Total assets | $ 174,080 | $ 184,245 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 4,114 | $ 4,834 |
Deferred revenue | 954 | 1,119 |
Accrued expenses | 9,902 | 13,032 |
Other non-current liabilities | 961 | 677 |
Deferred income taxes | 3,435 | 3,437 |
Stockholders' equity | 154,714 | 161,146 |
Total liabilities and stockholders' equity | $ 174,080 | $ 184,245 |
Three months ended | ||
March 31, | ||
Additional Financial Data (Unaudited) | 2014 | 2013 |
Capital expenditures | $ 647 | $ 480 |
Depreciation and amortization | $ 1,539 | $ 1,602 |
Stock based compensation | $ 1,406 | $ 1,394 |
Cash used in operating activities | $ 7,668 | $ 7,674 |
Conference Call
The Company will host a conference call and audio webcast to discuss the Company's 2014 first quarter financial results, certain business developments and financial guidance for the second quarter of 2014, 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 #31956599 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; ability to effectively resolve warning letters, audit observations and other findings or comments from the
CONTACT:Ronald H. Spair Chief Financial Officer 610-882-1820 Investorinfo@orasure.com www.orasure.com