Oxford Immunotec Reports First Quarter 2017 Financial Results
(Thomson Reuters ONE) -
* First quarter revenue of $21.5 million, an increase of 26% compared to prior
year period
* First quarter Tuberculosis revenue of $18.5 million, an increase of 8%
compared to prior year period
* First quarter Tick-borne disease and other revenue of $3.0 million
OXFORD, United Kingdom and MARLBOROUGH, Mass., May 02, 2017 (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 underserved immune-regulated conditions, today announced first
quarter 2017 financial results.
"We are very pleased with our performance during the first quarter as we
continued our evolution from a single-product company to a multi-product
company," said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford
Immunotec. "Our core tuberculosis (TB) business grew in line with our
expectations, with strong growth in the U.S. and Europe & ROW markets during the
first quarter, and we saw a strong contribution from our newly acquired tick-
borne disease franchise. As we move forward through the year, we will continue
to focus on driving revenue growth and progressing the company towards
profitability."
By revenue type, total revenues were, in millions:
Three Months Ended March 31,
--------------------------------------------
Percent
2017 2016 Change
-------------- -------------- ----------
Product $ 8.4 $ 8.1 3 %
Service 13.1 9.0 46 %
-------------- --------------
Total Revenue $ 21.5 $ 17.1 26 %
-------------- --------------
By indication, total revenues were, in millions:
Three Months Ended March 31,
-------------------------------
Percent
2017 2016 Change
---------- ---------- ---------
Tuberculosis $ 18.5 $ 17.1 8 %
Tick-Borne Disease and Other 3.0 - N/M
---------- ----------
Total Revenue $ 21.5 $ 17.1 26 %
---------- ----------
By geography, total revenues were, in millions:
Three Months Ended March 31,
--------------------------------------------------
Percent Change
--------------------- ----------------------------
As Constant
2017 2016 Reported Currency ((1))
---------- ---------- ----------- ----------------
United States $ 13.5 $ 8.7 55 % 55 %
Europe & ROW 1.8 1.6 12 % 22 %
Asia 6.2 6.8 -9 % -8 %
---------- ----------
Total revenue $ 21.5 $ 17.1 26 % 27 %
---------- ----------
( (1) )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.
First quarter 2017 Financial Results
Revenue for the first quarter of 2017 was $21.5 million, representing 26% growth
over the first quarter 2016 revenue of $17.1 million. On a constant currency
basis, revenue growth was 27% versus the prior year period. Tuberculosis revenue
for the first quarter of $18.5 million increased 8% over the prior year period.
2017 first quarter product revenue was $8.4 million, representing a 3% increase
from product revenue of $8.1 million in the first quarter of 2016. The increase
was primarily attributable to Europe & ROW TB growth and the sale of Immunetics
tick-borne disease kits, offset by reduced revenue in Asia driven by order
timing. Service revenue for the first quarter of 2017 was $13.1 million, up 46%
from 2016 first quarter revenue of $9.0 million. The increase in service revenue
was primarily driven by increased tuberculosis revenues in the United States as
well as revenues from Imugen tick-borne disease services.
United States revenue was $13.5 million in the first quarter of 2017,
representing 55% growth over revenue of $8.7 million in the prior year period.
The increase was due both to strong organic growth in our core tuberculosis
business revenue as well as the additional contribution of our tick-borne
disease revenues.
Europe & ROW revenue was $1.8 million in the first quarter of 2017, representing
a 12% increase compared to the first quarter of 2016. On a constant currency
basis, Europe & ROW increased 22% versus the first quarter of 2016. The increase
was primarily due to strong TB growth, particularly in the UK, and sales of
Immunetics tick-borne disease kits.
Asia revenue was $6.2 million in the first quarter of 2017, representing a
decrease of 9% compared to 2016 first quarter revenue of $6.8 million. On a
constant currency basis, Asia declined 8% versus the first quarter of 2016. The
decline was due to the timing of orders in China.
Gross profit for the first quarter of 2017 was $11.0 million, an increase
of $2.1 million over gross profit of $8.9 million in the same period of 2016.
Gross margin was 51.2%, a decrease of 110 basis points from the gross margin of
52.3% in the first quarter of 2016. The first quarter gross margin performance
reflects a strong improvement in the underlying TB margins offset by the
addition of tick-borne disease products, which carry a lower gross margin.
Operating expenses were $18.0 million in the first quarter of 2017, an increase
of $1.9 million compared to $16.1 million in the same period last year. The
increase in operating expenses was largely due to the inclusion of operating
expenses as a result of the Imugen and Immunetics acquisitions, as well as
expenses related to ongoing patent litigation. In addition, in the first quarter
we recorded a $2.4 million credit related to the change in fair value of
contingent consideration associated with the acquisition of Immunetics.
Net loss for the first quarter of 2017 was $8.1 million, or $0.36 per share,
compared to $7.0 million, or $0.32 per share, in the first quarter of 2016. Net
loss per share was based on 22,533,531 and 22,284,392 weighted average ordinary
shares outstanding for the first quarters of 2017 and 2016, respectively.
EBITDA for the first quarter was $(6.1) million compared to $(6.4) million in
the first quarter of 2016. Adjusted EBITDA was $(7.1) million for the first
quarter compared to $(5.8) million in the same period in 2016. Both EBITDA and
Adjusted EBITDA are non-GAAP measures.
Business Outlook
We expect to report revenue of between $24.9 and $25.7 million for the second
quarter of 2017.
We continue to expect to report full year 2017 revenue of between $102 and $105
million, representing 19% - 22% year-over-year growth. We expect revenue to
increase 21% to 24% for the year using constant exchange rates.
Conference Call
Oxford Immunotec will host a conference call on Tuesday, May 2, 2017 at 8:00
a.m. Eastern Time to discuss its first quarter 2017 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 8077049
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
underserved 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 Company's second product line is a range of assays for tick-borne
diseases, such as Lyme disease, obtained through the acquisitions of Imugen and
Immunetics. Also obtained through the acquisitions is the Company's third
product line focused on screening for Babesia in donated blood, for which the
Company is currently seeking FDA licensure. The T-SPOT.CMV test and the T-
SPOT.PRT test are pipeline products as part of the Company's fourth intended
product line focused on the transplantation market. In addition to these four
product lines, the Company has additional active development programs in other
immune-regulated conditions. 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.
Immunetics is a trademark of Immunetics, Inc.
Forward-Looking Statements
This release contains forward-looking statements that involve risks and
uncertainties, including statements about our anticipated plans, objectives,
intentions, the anticipated benefits of the transaction, the effects of the
transaction, including effects on future financial and operating results,
prospects for sales of our products and other statements that are not historical
facts. The forward-looking statements in this release are based on current
expectations, assumptions and data available as of the date of this release and
are subject to known and unknown risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by such statements,
including but not limited to: risks related to disruption of management time
from ongoing business operations due to the integration of Imugen and Immunetics
into the Company; the risk that the Company may fail to realize the benefits
expected from the acquisitions; the risk that the integration of Imugen and
Immunetics into the Company may not progress as anticipated; decisions by
regulatory authorities, hospitals and other health care institutions,
laboratories, physicians, patients and third party payers that could affect the
Company's business and prospects; as well as our ability to expeditiously and
successfully expand our sales and distribution networks. The risks included
above are not exhaustive. Other factors that could adversely affect our business
and prospects are described under the "Risk Factors" section in our filings with
the Securities and Exchange Commission ("SEC"). Our filings are available for
free by visiting the investor section of our website, www.oxfordimmunotec.com,
or the SEC's website, www.sec.gov.
Investors should give careful consideration to these risks and uncertainties.
Forward-looking statements contained herein 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 contained herein, which speak only as of the date
of this release. 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 March 31,
------------------------------------
(in thousands, except share and per
share data) 2017 2016
------------------------------------------ ------------------ -----------------
Revenue
Product $ 8,386 $ 8,138
Service 13,119 8,972
------------------ -----------------
Total revenue 21,505 17,110
Cost of revenue
Product 3,245 3,293
Service 7,252 4,872
------------------ -----------------
Total cost of revenue 10,497 8,165
------------------ -----------------
Gross profit 11,008 8,945
Operating expenses:
Research and development 3,805 3,021
Sales and marketing 9,640 8,480
General and administrative 6,876 4,583
Change in fair value of contingent
purchase price consideration (2,357 ) 55
------------------ -----------------
Total operating expenses 17,964 16,139
------------------ -----------------
Loss from operations (6,956 ) (7,194 )
Other expense:
Interest expense, net (823 ) (17 )
Foreign exchanges (losses) gains (106 ) 363
Other expense (140 ) (166 )
------------------ -----------------
Loss before income taxes (8,025 ) (7,014 )
Income tax expense (47 ) (35 )
------------------ -----------------
Net loss $ (8,072 ) $ (7,049 )
------------------ -----------------
Net loss per share attributable to
ordinary shareholders-basic and diluted $ (0.36 ) $ (0.32 )
------------------ -----------------
Weighted-average shares used to compute
net loss attributable to ordinary
shareholders-basic
and diluted 22,533,531 22,284,392
------------------ -----------------
Reconciliation of net loss to Adjusted EBITDA ((1))
(unaudited)
Three months ended March
31,
----------------------------
(in thousands) 2017 2016
-------------------------------------------------- -------------- -------------
Net loss $ (8,072 ) $ (7,049 )
Income tax expense 47 35
Interest expense, net 823 17
Depreciation and amortization of intangible
assets 1,003 581
Accretion and amortization of loan fees 149 -
-------------- -------------
EBITDA (6,050 ) (6,416 )
Reconciling items:
Share-based compensation expense 1,326 1,104
Unrealized exchange gains (38 ) (522 )
Change in fair value of contingent purchase
price consideration (2,357 ) 55
-------------- -------------
Adjusted EBITDA $ (7,119 ) $ (5,779 )
-------------- -------------
((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)
March 31, December 31,
(in thousands, except share and per share
data) 2017 2016
---------------------------------------------- ---------------- ---------------
Assets
Current assets:
Cash and cash equivalents $ 43,133 $ 59,110
Accounts receivable, net 16,906 13,265
Inventory, net 8,307 7,437
Prepaid expenses and other assets 3,874 2,390
---------------- ---------------
Total current assets 72,220 82,202
Restricted cash, non-current 200 200
Property and equipment, net 8,299 7,793
In-process research and development 16,170 16,170
Goodwill 3,822 3,822
Other intangible assets, net 10,764 11,017
Other assets 2,791 2,808
---------------- ---------------
Total assets $ 114,266 $ 124,012
---------------- ---------------
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 3,668 $ 3,201
Accrued liabilities 13,120 14,282
Contingent purchase price consideration 1,118 882
Deferred income 48 41
Current portion of loans payable 86 84
---------------- ---------------
Total current liabilities 18,040 18,490
Long-term portion of loans payable 29,552 29,601
Contingent purchase price consideration - 2,593
Other liabilities 364 364
---------------- ---------------
Total liabilities 47,956 51,048
---------------- ---------------
Shareholders' equity:
Ordinary shares, £0.006705 nominal value;
36,183,293 shares authorized at March
31, 2017
and December 31, 2016, and 22,735,980 and
22,635,431 shares issued and outstanding at
March 31, 2017 and December 31, 2016,
respectively 244 243
Additional paid-in capital 250,326 249,128
Accumulated deficit (176,728 ) (168,656 )
Accumulated other comprehensive loss (7,532 ) (7,751 )
---------------- ---------------
Total shareholders' equity 66,310 72,964
---------------- ---------------
Total liabilities and shareholders' equity $ 114,266 $ 124,012
---------------- --------------
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Oxford Immunotec via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 02.05.2017 - 13:00 Uhr
Sprache: Deutsch
News-ID 539718
Anzahl Zeichen: 25165
contact information:
Town:
Oxfordshire
Kategorie:
Business News
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