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OraSure Announces 2016 First Quarter Financial Results

BETHLEHEM, Pa., May 04, 2016 (GLOBE NEWSWIRE via COMTEX) --

OraSure Technologies, Inc. OSUR, -3.24% a leader in point-of-care diagnostic tests and specimen collection devices, today announced its consolidated financial results for the first quarter ended March 31, 2016.

Financial Highlights

  • Consolidated net revenues for the first quarter of 2016 were $29.1 million, a 7% increase from the first quarter of 2015.
  • Net domestic revenues from sales of the Company's OraQuick [(R)] rapid HCV test were $1.9 million for the first quarter of 2016, representing a 59% increase over the first quarter of 2015. Total HCV-related revenues, including exclusivity payments recognized under the HCV co-promotion agreement with AbbVie, were $6.3 million, as compared to $5.5 million for the first quarter of 2015.
  • The Company's molecular collection systems subsidiary, DNA Genotek ("DNAG"), contributed $6.9 million in net revenues during the first quarter of 2016, which represents a 3% increase over the first quarter of 2015.
  • Sales of the Company's cryosurgical systems products were $3.9 million, representing a 53% increase over the comparable quarter of 2015.
  • Consolidated net income for the first quarter of 2016 was $2.4 million, or $0.04 per share on a fully-diluted basis, which compares to a consolidated net income of $113,000, or $0.00 per share, for the first quarter of 2015.
  • Cash and short-term investments totaled $102.2 million and working capital amounted to $114.0 million at March 31, 2016.

"We are pleased with the Company's financial performance for the first quarter of 2016," said Douglas A. Michels, President and CEO of OraSure Technologies. "Continued growth in sales of our OraQuick [(R)] HCV and molecular collection systems products and improved performance by our cryosurgical systems business were the main drivers behind this performance. We expect to deliver continued profitable results during the remaining quarters of the year."

Financial Results

Consolidated net product revenues for the first quarter of 2016 increased 6% over the comparable period of 2015, primarily as a result of higher sales of the Company's cryosurgical systems, OraQuick [(R)] HCV and molecular collection systems products. These increases were partially offset by lower sales of the Company's OraQuick [(R)] professional HIV product.

Consolidated other revenues were $3.8 million and $3.3 million for the first quarter of 2016 and 2015, respectively. Amounts for both quarters included exclusivity payments recognized under the Company's HCV co-promotion agreement with AbbVie. Other revenue for the current quarter also included Ebola-related funding received from the U.S. Department of Health and Human Services Office of the Assistant Secretary for Preparedness and Response's Biomedical Advanced Research and Development Authority ("BARDA").

Consolidated gross margin for the three months ended March 31, 2016 was 70% compared to 63% for the three months ended March 31, 2015. Gross margin for the current quarter improved largely due to a more favorable product mix, a reduction in royalty expense and scrap and spoilage costs, and the Ebola-related funding from BARDA.

Consolidated operating expenses increased to $17.6 million during the first quarter of 2016 compared to $17.3 million in the comparable period of 2015. This increase was largely due to higher costs associated with the AbbVie co-promotion agreement and increased general and administrative expenses due to higher consulting, staffing, and legal costs. These increases were partially offset by lower research and development expenses.

The Company's cash and short-term investment balance totaled $102.2 million at March 31, 2016 compared to $101.3 million at December 31, 2015. Working capital was $114.0 million at March 31, 2016 compared to $111.5 million at December 31, 2015. For the three months ended March 31, 2016, the Company generated $4.7 million in cash from operations.

Second Quarter 2016 Outlook

The Company expects consolidated net revenues to range from $30.5 to $31.5 million and is projecting consolidated net income of between $0.04 and $0.05 per share for the second quarter of 2016.

Financial Data

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Condensed Consolidated Financial Data
(In thousands, except per-share data)
Unaudited
Three months ended

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