Oxford Immunotec Reports Second Quarter 2016 Financial Results
(Thomson Reuters ONE) -
* Second quarter revenue of $19.2 million, increased 34% compared to prior
year period
* Raising revenue guidance for the full year from $79.5-$82.5 million to
$82.5-$84.5 million
* Completed acquisition of Imugen, Inc. on July 1, 2016 for $22.2 million in
all cash deal, accelerating entry into tick-borne disease testing market
OXFORD, United Kingdom and MARLBOROUGH, Mass., Aug. 02, 2016 (GLOBE NEWSWIRE) --
Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, high-growth diagnostics
company focused on developing and commercializing proprietary tests for the
management of immune-regulated conditions, today announced second quarter 2016
financial results.
"We are very pleased with our financial and operating results during the second
quarter," said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford
Immunotec. "Sales performance exceeded our expectations, with solid growth
coming from the United States, China and Japan. Additionally, we are
tremendously excited about the recent acquisition of Imugen, which accelerates
our entry into the tick-borne disease market and marks a significant advance in
our goal of becoming a leader in the field of immune-regulated conditions."
By revenue type, total revenues were, in millions:
Three Months Ended June 30,
Percent
2016 2015 Change
Product $ 9.3 $ 6.6 41 %
Service 9.9 7.7 29 %
Total Revenue $ 19.2 $ 14.3 34 %
By geography, total revenues were, in millions:
Three Months Ended June 30,
Percent Change
Constant
As Currency
2016 2015 Reported Basis
United States $ 9.8 $ 7.3 34 % 34 %
Europe & ROW 2.0 1.9 2 % 6 %
Asia 7.4 5.1 47 % 37 %
Total revenue $ 19.2 $ 14.3 34 % 32 %
Changes in revenue include the impact of changes in foreign currency exchange
rates. We use the non-GAAP financial measure "constant currency basis" in our
filings to show changes in our revenue without giving effect to period-to-period
currency fluctuations. We consider the use of a period over period revenue
comparison on a constant currency basis to be helpful to investors, as it
provides a revenue growth measure free of positive or negative volatility due to
currency fluctuations.
Second Quarter 2016 Financial Results
Revenue for the second quarter of 2016 was $19.2 million, representing 34%
growth over the second quarter 2015 revenue of $14.3 million. On a constant
currency basis, revenue growth was 32% versus the prior year period.
2016 second quarter product revenue was $9.3 million representing a 41% increase
from product revenue of $6.6 million in the second quarter of 2015. The increase
in product revenue was primarily attributable to growth in Asia. Service revenue
for the second quarter of 2016 was $9.9 million, up 29% from 2015 second quarter
revenue of $7.7 million. The increase in service revenue was primarily driven by
volume increases in the United States.
United States revenue was $9.8 million in the second quarter of 2016
representing 34% growth over the same period's revenue of $7.3 million in the
prior year. Growth was driven primarily by volume increases in the institutional
and patient testing segments.
Europe & ROW revenue was $2.0 million in the second quarter of 2016 representing
a 2% increase compared to the second quarter of 2015. On a constant currency
basis, Europe & ROW increased 6% versus the second quarter of 2015.
Asia revenue was $7.4 million in the second quarter of 2016 representing 47%
growth over 2015 second quarter revenue of $5.1 million. On a constant currency
basis, Asia grew 37% versus the second quarter of 2015. The increase was driven
by continued strong growth in China and Japan.
Gross profit for the second quarter of 2016 was $10.5 million, an increase
of $2.8 million over gross profit of $7.8 million in the same period of 2015.
Gross margin was 55.1%, an increase of 70 basis points from the gross margin of
54.4% in the second quarter of 2015. The increase in gross margin was primarily
due to lower kit costs associated with increased volume, product mix and the
favorable impact of exchange rates on average selling prices, partially offset
by costs associated with new service initiatives.
Operating expenses were $17.9 million in the second quarter of 2016, an increase
of $3.5 million compared to $14.4 million in the same period last year. The
increase in operating expenses was primarily due to headcount increases related
to both sales and marketing and general and administrative functions, clinical
costs and legal expenses.
Net loss for the second quarter of 2016 was $6.4 million, or $0.29 per share,
compared to $7.3 million, or $0.33 per share, in the second quarter of 2015. Net
loss per share was based on 22,351,645 and 22,245,682 weighted average ordinary
shares outstanding for the second quarters of 2016 and 2015, respectively.
EBITDA for the second quarter of 2016 was $(5.8) million compared to $(6.8)
million in the second quarter of 2015. Adjusted EBITDA was $(5.3) million for
the second quarter of 2016 compared to $(6.5) million in the same period in
2015. Both EBITDA and Adjusted EBITDA are non-GAAP measures.
Cash and cash equivalents were $64.0 million as of June 30, 2016 compared
to $68.7 million as of March 31, 2016. Cash usage during the quarter was in line
with expectations.
Imugen Acquisition
On July 1, 2016, the Company completed the acquisition of substantially all of
the assets of Imugen, a Massachusetts-based clinical laboratory focused on
developing and performing specialized testing for tick-borne diseases, for $22.2
million in an all cash transaction.
Business Outlook
We expect to report full year 2016 revenue of between $82.5 and $84.5 million as
compared to our prior guidance of between $79.5 and $82.5 million.
We expect to report revenue of between $24.2 and $25.0 million for the third
quarter of 2016.
We expect to have approximately $30 million in cash at the end of 2016, which
will give the Company cash into the second half of 2018 based on our current
operating plan.
Conference Call
Oxford Immunotec will host a conference call on Tuesday, August 2, 2016 at 8:00
a.m. Eastern Time to discuss its second quarter 2016 financial results. The call
will be concurrently webcast. To listen to the conference call on your telephone
please dial (855) 363-5047 for United States callers and +1 (484) 365-2897 for
international callers and reference confirmation code 47066686 approximately ten
minutes prior to start time. To access the live audio webcast or subsequent
archived recording, visit the Investor Relations section of Oxford
Immunotec's website at www.oxfordimmunotec.com. The replay will be available on
the Company's website for approximately 60 days.
About Oxford Immunotec
Oxford Immunotec Global PLC is a global, high-growth diagnostics company focused
on developing and commercializing proprietary tests for the management of
immune-regulated conditions. The Company's first product is the T-
SPOT(®).TB test, which is used to test for tuberculosis infection. The T-
SPOT.TB test has been approved for sale in over 50 countries, including the
United States, where it has received pre-market approval from the Food and Drug
Administration, Europe, where it has obtained a CE mark, as well as Japan and
China. The T-SPOT.CMV test and the T-SPOT.PRT test are the Company's second and
third products and part of a series of products intended for the transplantation
market. In addition to these three products, the Company has additional active
development programs, each of which leverages our T cell, B cell and innate
immune measuring technology. The Company is headquartered near Oxford, U.K. and
in Marlborough, Mass. Additional information can be found
at www.oxfordimmunotec.com.
T-SPOT and the Oxford Immunotec logo are trademarks of Oxford Immunotec Ltd.
Forward-Looking Statements
This release contains forward-looking statements, including statements regarding
future revenues, expenses and the prospects for sales of our products. These
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ materially. These risks and uncertainties
include, among others, decisions by regulatory authorities, hospitals and other
health care institutions, laboratories, physicians, patients and third party
payers, as well as our ability to expeditiously and successfully expand our
sales and distribution networks and the other factors described under the "Risk
Factors" section in our filings with the Securities and Exchange Commission.
When evaluating Oxford Immunotec's business and securities, investors should
give careful consideration to these risks and uncertainties.
Forward-looking statements are based on current expectations and assumptions and
currently available data and are neither predictions nor guarantees of future
events or performance. You should not place undue reliance on forward-looking
statements, which speak only as of the date of this presentation. We do not
undertake to update or revise any forward-looking statements after they are
made, whether as a result of new information, future events, or otherwise,
except as required by applicable law.
CONTACTS:
For Media Inquiries:
Caroline Crawley
Oxford Immunotec
Tel: +44 1235 442796
ccrawley(at)oxfordimmunotec.com
For Investor Inquiries:
Rick Altieri
Chief Financial Officer
Oxford Immunotec
Tel: +1 (508) 573-9953
raltieri(at)oxfordimmunotec.com
Mark Klausner
Westwicke Partners
Tel: +1 (443) 213-0501
oxfordimmunotec(at)westwicke.com
Oxford Immunotec Global PLC
Condensed consolidated statements of operations
(unaudited)
Three months ended June 30, Six months ended June 30,
(in thousands,
except share
and per share
data) 2016 2015 2016 2015
Revenue
Product $ 9,293 $ 6,613 $ 17,431 $ 13,735
Service 9,861 7,639 18,833 14,318
Total revenue 19,154 14,252 36,264 28,053
Cost of
revenue
Product 3,512 2,885 6,805 5,955
Service 5,094 3,617 9,966 7,202
Total cost of 8,606 6,502 16,771 13,157
revenue
Gross profit 10,548 7,750 19,493 14,896
Operating
expenses:
Research and 3,341 2,846 6,417 5,205
development
Sales and 9,391 7,727 17,871 15,168
marketing
General and 5,151 3,784 9,734 7,651
administrative
Total
operating 17,883 14,357 34,022 28,024
expenses
Loss from (7,335 ) (6,607 ) (14,529 ) (13,128 )
operations
Other income
(expense):
Interest (17 ) (19 ) (34 ) (34 )
expense, net
Foreign
exchange gains 874 (674 ) 1,237 (509 )
(losses)
Other income 29 7 (137 ) 114
(expense)
Loss before (6,449 ) (7,293 ) (13,463 ) (13,557 )
income taxes
Income tax
(benefit) (3 ) 1 32 48
expense
Net loss $ (6,446 ) $ (7,294 ) $ (13,495 ) $ (13,605 )
Net loss per
share
attributable
to ordinary $ (0.29 ) $ (0.33 ) $ (0.60 ) $ (0.64 )
shareholders-
basic and
diluted
Weighted-
average shares
used to
compute net
loss 22,351,645 22,245,682 22,318,019 21,293,835
attributable
to ordinary
shareholders-
basic and
diluted
Reconciliation of net loss to Adjusted EBITDA ((1))
(unaudited)
Three months ended June Six months ended June 30,
30,
(in thousands) 2016 2015 2016 2015
Net loss $ (6,446 ) $ (7,294 ) $ (13,495 ) $ (13,605 )
Income tax (benefit) (3 ) 1 32 48
expense
Interest expense, 17 19 34 34
net
Depreciation and 624 483 1,205 936
amortization
EBITDA (5,808 ) (6,791 ) (12,224 ) (12,587 )
Reconciling items:
Share-based 1,355 713 2,459 1,588
compensation expense
Unrealized exchange (896 ) (459 ) (1,418 ) (615 )
gains
Change in fair value
of contingent 57 49 112 96
purchase price
consideration
Adjusted EBITDA $ (5,292 ) $ (6,488 ) $ (11,071 ) $ (11,518 )
((1) )EBITDA and Adjusted EBITDA are non-GAAP measures that we calculate as net
loss, adjusted for the impact of earnings or charges resulting from matters that
we consider not to be indicative of our ongoing operations. We believe that
these measures provide useful information to investors in understanding and
evaluating our operating results in the same manner as our management and Board
of Directors. Our presentation of these measures is not made in accordance with
U.S. GAAP, and our computation of these measures may vary from others in the
industry. Our use of these measures has limitations as an analytical tool, and
you should not consider it in isolation or as a substitute for analysis of our
results as reported under U.S. GAAP.
The above table presents a reconciliation of net loss, the most comparable U.S.
GAAP measure, to EBITDA and Adjusted EBITDA for each of the periods indicated.
Oxford Immunotec Global PLC
Condensed consolidated balance sheets
(unaudited)
June 30, December 31,
(in thousands, except share and per share
data) 2016 2015
Assets
Current assets:
Cash and cash equivalents $ 63,965 $ 83,715
Accounts receivable, net 9,742 7,058
Inventory 8,641 7,099
Prepaid expenses and other 2,647 3,592
Total current assets 84,995 101,464
Restricted cash, non-current 80 80
Property and equipment, net 6,561 6,284
In-process research and development 1,814 1,782
Goodwill 46 45
Other intangible assets, net 143 179
Other assets 19 18
Total assets $ 93,658 $ 109,852
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 2,567 $ 3,799
Accrued liabilities 8,751 9,949
Deferred income 92 1,654
Current portion of loans payable 81 79
--------------- --------------
Total current liabilities 11,491 15,481
Long-term portion of loans payable 344 386
Contingent purchase price consideration 1,428 1,293
---------------
Total liabilities 13,263 17,160
Shareholders' equity:
Ordinary shares, £0.006705 nominal value;
36,183,293 shares authorized at June 30, 2016
and December 31, 2015, and 22,569,104 and 243 243
22,549,488 shares issued and outstanding at
June 30, 2016 and December 31, 2015,
respectively
Additional paid-in capital 246,504 244,033
Accumulated deficit (159,802 ) (146,307 )
Accumulated other comprehensive loss (6,550 ) (5,277 )
--------------
Total shareholders' equity 80,395 92,692
--------------
Total liabilities and shareholders' equity $ 93,658 $ 109,852
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Oxford Immunotec via GlobeNewswire
[HUG#2032450]
Unternehmensinformation / Kurzprofil:
Datum: 02.08.2016 - 13:00 Uhr
Sprache: Deutsch
News-ID 486818
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contact information:
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