Source: EQS Group AG
DGAP-News: Oxford Immunotec Reports First Quarter 2014 Financial Results
DGAP-News: Oxford Immunotec /
Oxford Immunotec Reports First Quarter 2014 Financial Results
06.05.2014 / 13:08
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-- 2014 First Quarter Revenue of $12.3 Million Increased 60% Compared to Prior
Year
-- Net Loss was $3.2 Million for the First Quarter
-- Recipient of the 2014 Queen's Award for Enterprise
OXFORD, United Kingdom and MARLBOROUGH, Mass., May 6, 2014 (GLOBE NEWSWIRE) --
Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, commercial-stage
diagnostics company committed to improving patient care by providing advanced,
innovative tests in the field of immunology, today announced first quarter 2014
financial results.
'We are very pleased with the progress in our business and strong first
quarter, which was higher than our expectations,' said Dr. Peter
Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. 'We continue to be
excited about the multiple growth opportunities for our business and we are
stepping up our investment in the business to execute on these opportunities.'
By revenue type, total revenues were, in millions:
Three Months Ended March 31,
-----------------------------
2014 2013 Change
-----------------------------
Product $ 6.8 $ 4.1 66%
Service 5.5 3.6 53%
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Total Revenue $ 12.3 $ 7.7 60%
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By geography, total revenues were, in millions:
Three Months Ended March 31,
-----------------------------
2014 2013 Change
-----------------------------
United States $ 5.0 $ 3.2 56%
Europe and ROW 1.9 1.7 12%
Asia 5.4 2.8 93%
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Total Revenue $ 12.3 $ 7.7 60%
====================
First Quarter 2014 Financial Results
Revenue for the first quarter of 2014 was $12.3 million, representing 60%
growth over the first quarter 2013 revenue of $7.7 million.
United States revenue was $5.0 million in the first quarter of 2014
representing 56% growth over the same period's revenue of $3.2 million in the
prior year. Our growth continued to be driven by the acquisition of new
customers as well as higher utilization by existing customers.
Europe and Rest of World revenue was $1.9 million in the first quarter of 2014
representing 12% growth over the 2013 first quarter revenue of $1.7 million.
Results were reflective of the more fragmented nature of this market and our
investment priorities.
Asia revenue was $5.4 million in the first quarter of 2014 representing 93%
growth over the 2013 first quarter of $2.8 million. Revenue in China increased
significantly over the first quarter of last year due to growth in the market
and the effect of some quarter-to-quarter volatility in ordering patterns.
Revenue in Japan also increased significantly over the first quarter of last
year which was our first full quarter of sales after marketing approval.
Gross profit for the first quarter of 2014 was $6.3 million, an increase of
$3.0 million over gross profit of $3.3 million in the same period of 2013.
Gross margin was 51.0%, an increase of 7.9 percentage points over the gross
margin of 43.1% in the first quarter of 2013. The increase in gross margin was
due to an increase in both product margins and service margins. The increase in
product margins was driven by improvements in kit component costs and
amortization of fixed costs over an increased volume. The service margin
increase was driven primarily by the consolidation of all U.S. testing into one
lab facility in Memphis, TN, kit cost reductions, significant operational
improvements in workflow in the Memphis facility and economies of scale.
Operating expenses were $9.2 million in the first quarter of 2014, an increase
of $3.6 million compared to $5.6 million in the same period last year. The
increase in operating expenses was primarily due to the hiring of additional
sales and marketing personnel, an increase in research and development spending
and an increase in infrastructure in addition to higher administrative costs
related to being a public company.
EBITDA for the first quarter was $(2.7) million compared to $(0.9) million in
the first quarter of 2013. Adjusted EBITDA was $(2.4) million for the first
quarter compared to $(1.8) million in the same period in 2013. Both EBITDA and
Adjusted EBITDA are non-GAAP measures.
Net loss for the first quarter of 2014 was $3.2 million or $0.18 per share
compared to $1.2 million or $0.56 per share in the first quarter of 2013. Net
loss per share was based on 17,264,135 and 2,154,285 weighted average ordinary
shares outstanding for the first quarter of 2014 and 2013, respectively.
Cash and cash equivalents were $67.6 million as of March 31, 2014 compared to
$76.5 million as of December 31, 2013, a decrease of $8.9 million. The first
quarter typically has the greatest amount of cash used in the year due to
factors such as the payment of royalties and payment of year-end bonuses.
Additionally, in this quarter we paid approximately $900,000 in residual IPO
expenses.
Business Outlook
We expect to report revenue of between $11.1 and $11.6 million for the second
quarter of 2014, and between $47 and $50 million for the full year of 2014. We
expect that our gross margin will improve from first quarter levels and that
operating expenses and net loss will increase as we continue to invest in the
business.
Conference Call
Oxford Immunotec will host a conference call on Tuesday, May 6, 2014 at 8:00
a.m. Eastern Time to discuss its first quarter 2014 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 34958334,
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 http://www.oxfordimmunotec.com. The replay will
be available on the Company's website for approximately 90 days.
About Oxford Immunotec
Oxford Immunotec Global PLC is a global, commercial-stage diagnostics company
committed to improving patient care by providing advanced, innovative tests in
the field of immunology. The proprietary T-SPOT(r) technology platform measures
the responses of specific immune cells, known as T cells, to inform the
diagnosis, prognosis and monitoring of patients with immunologically controlled
diseases. T cells are a central component of the human body's immune system,
and are implicated in the control and progression of many medical conditions,
including certain types of infectious diseases, cancers and autoimmune
diseases. The Company's initial product developed using the T-SPOT technology
platform is the T-SPOT.TB test, which is used to test for latent 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 is headquartered near Oxford, UK and in
Marlborough, MA. 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, includes, 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@oxfordimmunotec.com
For Investor Inquiries:
Rick Altieri
Chief Financial Officer,
Oxford Immunotec
Tel: +1 (508) 481-4648
raltieri@oxfordimmunotec.com
Mark Klausner
Westwicke Partners
Tel: +1 (443) 213-0500
oxfordimmunotec@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) 2014 2013
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Revenue
Product $6,825 $4,121
Service 5,449 3,558
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Total revenue 12,274 7,679
Cost of revenue
Product 3,041 2,057
Service 2,971 2,310
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Total cost of revenue 6,012 4,367
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Gross profit 6,262 3,312
Operating expenses:
Research and development 724 474
Sales and marketing 4,565 3,013
General and administrative 3,912 2,120
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Total operating expenses 9,201 5,607
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Loss from operations (2,939) (2,295)
Other (expense) income:
Interest expense, net (35) (39)
Foreign exchange (losses) gains (145) 953
Other (expense) income (2) 190
----------------------
Loss before income taxes (3,121) (1,191)
Income tax expense 32 10
----------------------
Net loss $ (3,153) $ (1,201)
======================
Net loss per share attributable to ordinary $ (0.18) $ (0.56)
shareholders--basic and diluted
======================
Weighted-average shares used to compute net loss 17,264,135 2,154,285
attributable to ordinary shareholders--basic and diluted
======================
Note: 2013 share and per share amounts have been adjusted to reflect the
Company's1-for-6.705 reverse stock split which occurred in November 2013.
Reconciliation of net loss to Adjusted EBITDA
(unaudited)
Three months ended
March 31,
----------------------
(in thousands) 2014 2013
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Net loss $ (3,153) $ (1,201)
Income tax expense 32 10
Interest expense, net 35 39
Depreciation and amortization 351 295
----------------------
EBITDA (2,735) (857)
Reconciling items:
Share-based compensation expense 265 12
Unrealized exchange losses (gains) 54 (937)
Loss on change in fair value of warrants 10
--
----------------------
Adjusted EBITDA $ (2,406) $ (1,782)
======================
Oxford Immunotec Global PLC
Condensed consolidated balance sheets
(unaudited)
(in thousands, except share and per share data) March 31, December
2014 31, 2013
--------------------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $67,630 $76,494
Restricted cash 146 87
Accounts receivable, net 8,616 4,754
Inventory 6,381 5,450
Prepaid expenses and other 3,869 2,242
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Total current assets 86,642 89,027
Restricted cash, non-current 246 362
Property and equipment, net 3,340 2,964
Intangible assets, net 341 331
Other assets 60 60
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Total assets $90,629 $92,744
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Liabilities and shareholders' equity
Current liabilities:
Accounts payable $4,880 $2,310
Accrued expenses 3,754 6,936
Deferred income 2,512 1,540
Current portion of loans payable 173 170
Taxes payable 1 177
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Total current liabilities 11,320 11,133
Long-term portion of loans payable 519 563
Other liabilities 306 296
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Total liabilities 12,145 11,992
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Shareholders' equity:
Ordinary shares, [Pounds]0.006705 nominal value; 25,189,285 shares 191
188
authorized at March 31, 2014 and December 31, 2013,
17,524,682 and 17,255,267 shares issued and outstanding at
March 31, 2014 and December 31, 2013, respectively
Additional paid-in capital 184,231 183,967
Accumulated deficit (102,808) (99,655)
Accumulated other comprehensive loss (3,130) (3,748)
--------------------
Total shareholders' equity 78,484 80,752
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Total liabilities and shareholders' equity $90,629 $92,744
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News Source: NASDAQ OMX
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Language: English
Company: Oxford Immunotec
United Kingdom
ISIN: GB00BGFBB958
End of News DGAP News-Service
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266674 06.05.2014