| Up in afmar... OraSure Announces 2017 Second Quarter Financial Results BETHLEHEM, Pa., Aug. 02, 2017 (GLOBE NEWSWIRE) -- OraSure Technologies, Inc. (NASDAQ:OSUR), a leader in point-of-care diagnostic tests and specimen collection devices, today announced its consolidated financial results for the three and six months ended June 30, 2017. Financial Highlights -- Consolidated net revenues for the second quarter of 2017 were $40.2 million, a 28% increase from the second quarter of 2016. Net product revenues were $39.1 million, representing a 42% increase over the second quarter of 2016. -- Consolidated net revenues for the six months ended June 30, 2017 were $72.7 million, a 20% increase from the comparable period of 2016. Net product revenues were $70.6 million, representing a 34% increase over the first half of 2016 -- Net molecular collection systems revenues were $16.1 million during the second quarter of 2017, which represents a 90% increase over the second quarter of 2016. Net molecular collection systems revenues during the six months ended June 30, 2017 were $26.8 million, a 75% increase from the comparable period in 2016. -- Total OraQuick(R) HCV sales of $7.6 million for the second quarter of 2017 increased 138% compared to the second quarter of 2016 and included a 268% increase in international sales of the product from the prior year quarter. OraQuick(R) HCV sales were $13.7 million in the first six months of 2017, a 125% increase over the first six months of 2016 and included a 298% increase in international sales of the product from the prior year period. -- Net revenues from international sales of the Company's OraQuick(R) HIV products remained consistent at $2.0 million in the second quarters of 2017 and 2016. Total international OraQuick(R) HIV sales for the six months ended June 30, 2017 were $4.7 million, a 65% increase over the first six months of 2016. -- Consolidated net income for the second quarter of 2017 was $5.4 million, or $0.09 per share on a fully diluted basis, which compares to consolidated net income of $3.8 million, or $0.07 per share on a fully diluted basis, for the second quarter of 2016. Consolidated net income for the six months ended June 30, 2017 was $17.9 million, or $0.30 per share on a fully-diluted basis, which compares to consolidated net income of $6.3 million, or $0.11 per share, for the comparable period of 2016. Results for the first six months of 2017 included a $12.5 million pre-tax gain related to a litigation settlement that was accounted for as a reduction of operating expenses -- Cash and short-term investments totaled $162.1 million and working capital amounted to $182.5 million at June 30, 2017. "Our second quarter results were truly outstanding, driven by strong performances in our molecular collection and infectious disease businesses," said Douglas A. Michels, President and Chief Executive Officer of OraSure Technologies, Inc. "We are successfully executing against our strategic growth objectives globally. Our existing business momentum is strong, and we believe we are in the early stages of addressing several new large business opportunities. Because of the potential of these opportunities, we are also building additional production capacity to meet the expected strong demand for our products in the coming years." Financial Results Consolidated net product revenues for the second quarter of 2017 increased 42% over the comparable period of 2016, primarily as a result of higher sales of the Company's molecular collections and OraQuick(R) HCV products, partially offset by lower domestic sales of the Company's professional OraQuick(R) HIV product. Consolidated net product revenues for the first six months of 2017 increased 34% over the comparable period of 2016, primarily as a result of higher sales of the Company's molecular collections and OraQuick(R) HCV products and higher international sales of the OraQuick(R) HIV self-test, partially offset by lower domestic sales of the Company's professional OraQuick(R) HIV product. Consolidated other revenues for the second quarter and first six months of 2017 were $1.0 million and $2.1 million, respectively. This compares to consolidated other revenues for the second quarter and first six months of 2016 of $3.8 million and $7.6 million, respectively. Other revenues in 2017 represent funding received from the U.S. Biomedical Advanced Research Development Authority ("BARDA"). Other revenues in the second quarter of 2016 included $417,000 of BARDA funding and $3.4 million of exclusivity revenues recognized under the Company's HCV co-promotion agreement with AbbVie, which terminated effective December 31, 2016. Other revenues in the first six months of 2016 included $899,000 of BARDA funding and $6.7 million of AbbVie exclusivity revenues. Consolidated gross margin was 63% for both the three and six months ended June 30, 2017. Consolidated gross margin for the three and six months ended June 30, 2016 was 67% and 68%, respectively. Gross margin for the current quarter and for the first six months of 2017 decreased primarily due to the absence of AbbVie exclusivity revenues during these periods. Gross margin in the first six months of 2017 was also negatively impacted by an increase in lower margin product sales and higher scrap and spoilage costs. Consolidated operating expenses increased to $18.6 million during the second quarter of 2017 compared to $16.7 million in the second quarter of 2016. For the six months ended June 30, 2017, consolidated operating expenses were $23.0 million, an $11.3 million decrease from the $34.4 million reported for the six months ended June 30, 2016. The quarterly increase was largely due to higher staffing costs and increased lab supplies. The decrease in the six-month period was primarily due to the $12.5 million gain on a litigation settlement, the absence of costs associated with the AbbVie HCV co-promotion agreement, and lower legal fees, partially offset by increased staffing costs and higher research and development expenses. Operating income increased 58% to $6.9 million in the second quarter of 2017 compared to $4.3 million in the second quarter of 2016. Operating income for the six months ended June 30, 2017 was $22.7 million, a 223% increase over the comparable period in 2016. The Company's cash and short-term investment balance totaled $162.1 million at June 30, 2017, compared to $120.9 million at December 31, 2016. Working capital was $182.5 million at June 30, 2017, compared to $139.1 million at December 31, 2016. For the six months ended June 30, 2017, the Company generated $21.7 million in cash from operations. Third Quarter 2017 Outlook The Company expects consolidated net revenues to range from $40.5 million to $41.5 million and is projecting consolidated net income of $0.09 to $0.10 per share for the third quarter of 2017. Financial Data Condensed Consolidated Financial Data (In thousands, except per-share data) Unaudited ------------------------------------------------------------------ Three months ended Six months ended June 30, June 30, 2017 2016 2017 2016 --------- --------- --------- --------- Results of Operations Net revenues $ 40,176 $ 31,359 $ 72,722 $ 60,448 Cost of products sold 14,699 10,274 26,935 19,050 Gross profit 25,477 21,085 45,787 41,398 Operating expenses: Research and development 3,338 2,985 6,308 5,351 Sales and marketing 7,502 7,397 14,379 16,103 General and administrative 7,750 6,354 14,842 12,896 Gain on litigation settlement - - (12,500) - Total operating expenses 18,590 16,736 23,029 34,350 Operating income 6,887 4,349 22,758 7,048 Other income (expense) 96 (340) 563 (532) Income before income taxes 6,983 4,009 23,321 6,516 Income tax expense 1,555 173 5,452 234 Net income $ 5,428 $ 3,836 $ 17,869 $ 6,282 Earnings per share: Basic $ 0.09 $ 0.07 $ 0.31 $ 0.11 Diluted $ 0.09 $ 0.07 $ 0.30 $ 0.11 Weighted average shares: Basic 58,478 55,543 57,708 55,497 Diluted 60,728 56,208 59,755 56,144 Summary of Net Revenues by Market and Product (Unaudited) Three Months Ended June 30, Percentage of Total Net Dollars Revenues Market 2017 2016 % Change 2017 2016 ----------------- Infectious disease testing $ 16,663 $ 12,949 29 % 41 % 41% Risk assessment testing 3,238 3,159 3 8 10 Cryosurgical systems 3,174 3,041 4 8 10 Molecular collection systems 16,057 8,433 90 40 27 Net product revenues 39,132 27,582 42 97 88 Other 1,044 3,777 (72) 3 12 Net revenues $ 40,176 $ 31,359 28% 100% 100% Six Months Ended June 30, Percentage of Total Net |
