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 fourth quarter and full
year ended December 31, 2016.
Financial Highlights
- Consolidated net revenues for the fourth quarter of 2016 were
$35.5 million, a 10% increase from the fourth quarter of 2015.
Consolidated net revenues for the year ended December 31, 2016 rose
to $128.2 million, a 7% improvement from 2015.
- Net molecular collection systems revenues were $8.6 million
during the fourth quarter of 2016, which represents a 10% increase
over the fourth quarter of 2015. Net molecular collection systems
revenues for the year ended December 31, 2016 were $32.2 million,
an 8% improvement from 2015.
- Net revenues from international sales of the Company’s
OraQuick® HIV products were $1.3 million for the fourth quarter of
2016, representing a 217% increase over the fourth quarter of 2015.
Net international HIV revenues were $5.2 million for the year ended
December 31, 2016, a 118% increase from 2015.
- International sales of the Company’s OraQuick® HCV test were
$2.9 million for the fourth quarter of 2016, representing a 123%
increase from the fourth quarter of 2015. International HCV sales
for the year ended December 31, 2016 rose to $6.6 million, a 71%
improvement from 2015.
- During the fourth quarter of 2016, the Company made its first
shipments of product, worth $1.9 million, under an $18 million
supply contract with a foreign government, largely consisting of
OraQuick® HCV tests.
- Consolidated net income for the fourth quarter of 2016 was $7.2
million, or $0.13 per share on a fully-diluted basis, which
compares to consolidated net income of $4.6 million, or $0.08 per
share on a fully-diluted basis, for the fourth quarter of 2015.
Consolidated net income for the year ended December 31, 2016 was
$19.7 million, or $0.35 per share on a fully-diluted basis, which
compares to consolidated net income of $8.2 million, or $0.14 per
share on a fully-diluted basis, for the comparable period of
2015.
- Cash and short-term investments totaled $120.9 million and
working capital amounted to $139.1 million at December 31,
2016.
“Our fourth quarter financial results exceeded
expectations on the top and bottom lines,” said Douglas A. Michels,
President and CEO of OraSure Technologies. “A major contributor to
growth during both the quarter and full-year period was our
international business. Expanding international sales of our HIV
self-test and HCV product is a critical component of OraSure’s
global growth strategy.”
Financial Results
Consolidated net product revenues for the fourth
quarter of 2016 approximated those of the same period in 2015,
primarily as a result of higher international sales of OraQuick®
HIV and HCV tests and higher sales of the Company’s molecular
collection systems products, largely offset by lower domestic sales
of the Company’s OraQuick® HIV and HCV products and lower OraQuick®
Ebola sales.
Consolidated net product revenues for the full
year of 2016 increased 2% over 2015, primarily as a result of
higher international sales of the Company’s OraQuick® HCV and HIV
tests, and higher sales of the Company’s molecular collection
systems and cryosurgical systems products. These increases were
partially offset by lower domestic sales of the Company’s OraQuick®
HIV and Ebola products.
Consolidated other revenues for the fourth
quarter and full year of 2016 were $6.9 million and $21.3 million,
respectively. This compares to consolidated other revenues for the
fourth quarter and full year of 2015 of $3.7 million and $15.3
million, respectively. Exclusivity revenues recognized under the
Company’s HCV co-promotion agreement with AbbVie for the three
months and year ended December 31, 2016 were $6.1 million and $18.9
million, respectively. AbbVie exclusivity revenues for the three
months and year ended December 31, 2015 were $3.4 million and $13.5
million, respectively. Other revenues in the fourth quarter and
full-year of 2016 also included $747,000 and $2.3 million,
respectively, of funding received from the U.S. Biomedical Advanced
Research Development Authority (“BARDA”). Other revenues for the
fourth quarter and full year of 2015 included $319,000 and $1.8
million, respectively, in BARDA funding.
Consolidated gross margin for the three months
and year ended December 31, 2016 was 67% and 69%, respectively.
Consolidated gross margin for the three months and year ended
December 31, 2015 was 68% and 67%, respectively. Gross margin for
the current quarter decreased due to a less favorable product mix
and severance costs associated with a corporate restructuring plan
implemented by the Company during the fourth quarter, partially
offset by higher other revenues and improved overhead absorption.
Gross margin for the full year improved primarily due to the
increase in other revenues.
Consolidated operating expenses decreased to
$16.9 million during the fourth quarter of 2016 compared to $17.8
million in the fourth quarter of 2015. For the year ended December
31, 2016, consolidated operating expenses were $67.8 million, a
reduction from the $72.2 million reported for the year ended
December 31, 2015. The quarterly decrease was largely due to lower
detailing costs associated with the AbbVie HCV co-promotion
agreement, lower commission costs, a decrease in bad debt expense,
and a reduction in research and development expenses recorded as a
result of a payment received to settle a claim against one of the
Company’s raw material suppliers. These decreases were partially
offset by the corporate restructuring severance costs, increased
legal fees, and higher staffing-related costs. The decrease in the
full-year period was largely due to lower detailing costs
associated with the AbbVie HCV co-promotion agreement and reduced
research and development expenses due to the supplier settlement,
partially offset by higher legal fees, severance costs, consulting
fees and staffing-related expenses.
The Company’s cash and short-term investment
balance totaled $120.9 million at December 31, 2016, compared to
$101.3 million at December 31, 2015. Working capital was $139.1
million at December 31, 2016, compared to $111.5 million at
December 31, 2015. For the year ended December 31, 2016, the
Company generated $22.8 million in cash from operations.
First Quarter 2017
Outlook
The Company expects consolidated net revenues to
range from $31.0 to $31.5 million and is projecting consolidated
net income of $0.17 to $0.18 per share for the first quarter of
2017. This guidance reflects the absence of revenues and costs
associated with the AbbVie HCV co-promotion agreement, which
terminated at the end of 2016, and a lower gross margin
contribution from the increasing amount of international sales
expected in 2017. The quarterly guidance also includes the
after-tax impact of a $12.5 million litigation settlement recently
announced by the Company.
Financial Data
Condensed Consolidated Financial
Data |
(In thousands, except per-share
data) |
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
Three months ended |
|
|
Year ended |
December 31, |
|
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
2015 |
Results of
Operations |
|
|
|
|
|
|
|
|
|
Net revenues |
|
$ |
35,499 |
|
|
$ |
32,382 |
|
|
|
$ |
128,198 |
|
$ |
119,719 |
Cost of products
sold |
|
|
11,545 |
|
|
|
10,452 |
|
|
|
|
40,171 |
|
|
39,426 |
Gross
profit |
|
|
23,954 |
|
|
|
21,930 |
|
|
|
|
88,027 |
|
|
80,293 |
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
1,207 |
|
|
|
2,693 |
|
|
|
|
9,754 |
|
|
11,654 |
Sales and
marketing |
|
|
7,121 |
|
|
|
8,623 |
|
|
|
|
29,652 |
|
|
35,088 |
General
and administrative |
|
|
8,553 |
|
|
|
6,522 |
|
|
|
|
28,356 |
|
|
25,493 |
Total
operating expenses |
|
|
16,881 |
|
|
|
17,838 |
|
|
|
|
67,762 |
|
|
72,235 |
Operating
income |
|
|
7,073 |
|
|
|
4,092 |
|
|
|
|
20,265 |
|
|
8,058 |
Other income |
|
|
92 |
|
|
|
379 |
|
|
|
|
58 |
|
|
774 |
Income before income
taxes |
|
|
7,165 |
|
|
|
4,471 |
|
|
|
|
20,323 |
|
|
8,832 |
Income tax (benefit)
expense |
|
|
(31 |
) |
|
|
(145 |
) |
|
|
|
603 |
|
|
665 |
Net income |
|
$ |
7,196 |
|
|
$ |
4,616 |
|
|
|
$ |
19,720 |
|
$ |
8,167 |
Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.13 |
|
|
$ |
0.08 |
|
|
|
$ |
0.35 |
|
$ |
0.14 |
Diluted |
|
$ |
0.13 |
|
|
$ |
0.08 |
|
|
|
$ |
0.35 |
|
$ |
0.14 |
|
|
|
|
|
|
|
|
|
|
Weighted average
shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
55,811 |
|
|
|
56,308 |
|
|
|
|
55,615 |
|
|
56,397 |
Diluted |
|
|
57,232 |
|
|
|
56,678 |
|
|
|
|
56,513 |
|
|
56,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Net Revenues by Market and Product
(Unaudited)
|
|
Three Months Ended December
31, |
|
|
|
|
Dollars |
|
|
|
|
Percentage of Total Net Revenues |
|
|
Market |
|
2016 |
|
|
2015 |
|
% Change |
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infectious
disease testing |
$ |
13,679 |
|
$ |
14,546 |
|
(6 |
)% |
|
|
39 |
% |
|
45 |
% |
|
Risk
assessment testing |
|
3,322 |
|
|
3,381 |
|
(2 |
) |
|
|
9 |
|
|
10 |
|
|
Cryosurgical systems |
|
3,071 |
|
|
2,964 |
|
4 |
|
|
|
9 |
|
|
9 |
|
|
Molecular
collection systems |
|
8,565 |
|
|
7,775 |
|
10 |
|
|
|
24 |
|
|
24 |
|
|
|
Net product
revenues |
|
28,637 |
|
|
28,666 |
|
(0 |
) |
|
|
81 |
|
|
88 |
|
|
Other |
|
|
6,862 |
|
|
3,716 |
|
85 |
|
|
|
19 |
|
|
12 |
|
|
|
Net revenues |
$ |
35,499 |
|
$ |
32,382 |
|
10 |
% |
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, |
|
|
|
|
Dollars |
|
|
|
|
Percentage of Total Net Revenues |
|
|
Market |
|
2016 |
|
|
2015 |
|
% Change |
|
2016 |
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Infectious
disease testing |
$ |
48,408 |
|
$ |
49,129 |
|
(1 |
)% |
|
|
38 |
% |
|
41 |
% |
|
Risk
assessment testing |
|
13,068 |
|
|
13,485 |
|
(3 |
) |
|
|
10 |
|
|
11 |
|
|
Cryosurgical systems |
|
13,234 |
|
|
11,920 |
|
11 |
|
|
|
10 |
|
|
10 |
|
|
Molecular
collection systems |
|
32,214 |
|
|
29,924 |
|
8 |
|
|
|
25 |
|
|
25 |
|
|
|
Net product
revenues |
|
106,924 |
|
|
104,458 |
|
2 |
|
|
|
83 |
|
|
87 |
|
|
Other |
|
|
21,274 |
|
|
15,261 |
|
39 |
|
|
|
17 |
|
|
13 |
|
|
|
Net revenues |
$ |
128,198 |
|
$ |
119,719 |
|
7 |
% |
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December
31, |
|
December 31, |
|
HIV
Revenues |
|
2016 |
|
|
2015 |
|
% Change |
|
|
2016 |
|
|
2015 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
5,037 |
|
$ |
6,809 |
|
(26 |
)% |
|
$ |
21,482 |
|
$ |
24,956 |
|
(14 |
)% |
|
International |
|
1,314 |
|
|
415 |
|
217 |
|
|
|
5,248 |
|
|
2,410 |
|
118 |
|
|
Domestic
OTC |
|
1,747 |
|
|
2,069 |
|
(16 |
) |
|
|
6,320 |
|
|
6,992 |
|
(10 |
) |
|
Net product revenues |
$ |
8,098 |
|
$ |
9,293 |
|
(13 |
)% |
|
$ |
33,050 |
|
$ |
34,358 |
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
|
December 31, |
|
December 31, |
|
HCV
Revenues |
|
2016 |
|
|
2015 |
|
% Change |
|
|
2016 |
|
|
2015 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
$ |
2,235 |
|
$ |
2,698 |
|
(17 |
)% |
|
|
$ |
7,453 |
|
$ |
7,502 |
|
(1 |
)% |
|
|
International |
|
2,908 |
|
|
1,306 |
|
123 |
|
|
|
|
6,630 |
|
|
3,884 |
|
71 |
|
|
|
Net product revenues |
|
5,143 |
|
|
4,004 |
|
28 |
|
|
|
|
14,083 |
|
|
11,386 |
|
24 |
|
|
|
Amortization of exclusivity payments |
|
6,114 |
|
|
3,397 |
|
80 |
|
|
|
|
18,951 |
|
|
13,479 |
|
41 |
|
|
|
Net HCV-related revenues |
$ |
11,257 |
|
$ |
7,401 |
|
52 |
% |
|
|
$ |
33,034 |
|
$ |
24,865 |
|
33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Year Ended |
|
|
|
December
31, |
|
|
December 31, |
|
Cryosurgical Systems Revenues |
|
2016 |
|
|
2015 |
|
% Change |
|
|
2016 |
|
|
2015 |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
professional |
$ |
1,389 |
|
$ |
1,043 |
|
33 |
% |
|
|
$ |
5,545 |
|
$ |
4,311 |
|
29 |
% |
|
International professional |
|
165 |
|
|
157 |
|
5 |
|
|
|
|
771 |
|
|
916 |
|
(16 |
) |
|
Domestic
OTC |
|
288 |
|
|
90 |
|
220 |
|
|
|
|
1,350 |
|
|
390 |
|
246 |
|
|
International OTC |
|
1,229 |
|
|
1,674 |
|
(27 |
) |
|
|
|
5,568 |
|
|
6,303 |
|
(12 |
) |
|
Net cryosurgical systems revenues |
$ |
3,071 |
|
$ |
2,964 |
|
4 |
% |
|
|
$ |
13,234 |
|
$ |
11,920 |
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets
(Unaudited) |
|
|
December 31, 2016 |
|
December 31, 2015 |
|
Assets |
|
|
|
|
|
$ |
109,790 |
|
$ |
94,094 |
|
Cash and cash
equivalents |
Short-term
investments |
|
11,160 |
|
|
7,225 |
|
Accounts receivable,
net |
|
19,827 |
|
|
19,265 |
|
Inventories |
|
11,799 |
|
|
13,242 |
|
Other current
assets |
|
3,865 |
|
|
2,888 |
|
Property and equipment,
net |
|
20,033 |
|
|
20,083 |
|
Intangible assets,
net |
|
10,337 |
|
|
12,591 |
|
Goodwill |
|
18,793 |
|
|
18,250 |
|
Other non-current
assets |
|
2,331 |
|
|
1,683 |
|
Total
assets |
$ |
207,935 |
|
$ |
189,321 |
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
Accounts payable |
$ |
4,633 |
|
$ |
5,087 |
|
Deferred revenue |
|
1,388 |
|
|
9,735 |
|
Other current
liabilities |
|
11,314 |
|
|
10,412 |
|
Other non-current
liabilities |
|
2,304 |
|
|
1,768 |
|
Deferred income
taxes |
|
2,446 |
|
|
2,883 |
|
Stockholders’
equity |
|
185,850 |
|
|
159,436 |
|
Total
liabilities and stockholders’ equity |
$ |
207,935 |
|
$ |
189,321 |
|
|
|
Year ended |
|
December 31, |
|
Additional
Financial Data
(Unaudited) |
|
2016 |
|
|
2015 |
|
|
|
|
|
|
Capital
expenditures |
$ |
4,381 |
|
$ |
3,744 |
|
Depreciation and
amortization |
$ |
5,687 |
|
$ |
5,696 |
|
Stock-based
compensation |
$ |
6,063 |
|
$ |
6,045 |
|
Cash provided by
operating activities |
$ |
22,795 |
|
$ |
15,773 |
|
|
|
|
|
|
Conference Call
The Company will host a conference call and
audio webcast to discuss the Company’s 2016 fourth quarter
financial results, certain business developments and financial
guidance for the first quarter of 2017, beginning today at 5:00
p.m. Eastern Time (2:00 p.m. Pacific Time). On the call will be
Douglas A. Michels, President and Chief Executive Officer, and
Ronald H. Spair, Chief Financial Officer and Chief Operating
Officer. The call will include prepared remarks by management and a
question and answer session.
In order to listen to the conference call,
please either dial 844-831-3030 (Domestic) or 315-625-6887
(International) and reference Conference ID #49022171 or 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 seven days. A replay of the call can also be accessed
until February 15, 2017, by dialing 855-859-2056 (Domestic) or
404-537-3406 (International) and entering the Conference ID
#49022171.
About OraSure
Technologies
OraSure Technologies is a leader in the
development, manufacture and distribution of point-of-care
diagnostic and collection devices and other technologies designed
to detect or diagnose critical medical conditions. Its
first-to-market, innovative products include rapid tests for the
detection of antibodies to HIV and HCV on the OraQuick® platform,
oral fluid sample collection, stabilization and preparation
products for molecular diagnostic applications, and oral fluid
laboratory tests for detecting various drugs of abuse. OraSure's
portfolio of products is sold globally to various clinical
laboratories, hospitals, clinics, community-based organizations and
other public health organizations, research and academic
institutions, distributors, government agencies, physicians'
offices, commercial and industrial entities and consumers. The
Company's products enable healthcare providers to deliver critical
information to patients, empowering them to make decisions to
improve and protect their health.
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 FDA or other regulators; 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, historic purchase levels or minimum purchase
requirements for our 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; 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, high unemployment levels
and poor credit conditions; 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 testing or
other products; 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”) and 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; history of
losses and ability to achieve 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 meet financial
covenants in credit agreements; 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 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 December
31, 2015, 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. The
forward-looking statements are made as of the date of this press
release and OraSure Technologies undertakes no duty to update these
statements.
Company Contact:
Ronald H. Spair
Chief Financial Officer
610-882-1820
Investorinfo@orasure.com
www.orasure.com
OraSure Technologies (NASDAQ:OSUR)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
OraSure Technologies (NASDAQ:OSUR)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024