- Fourth Quarter Revenue of $12.1 Million Increased 19% Compared to Prior Year Period
- 2014 Revenue of $49.5 Million Increased 28% Compared to Prior Year
- Reviewed Technology Platform and Product Pipeline at Investor Technology Day in December
OXFORD, United Kingdom and MARLBOROUGH, Mass., March 3, 2015 (GLOBE NEWSWIRE) -- Oxford Immunotec Global PLC (Nasdaq:OXFD), a global, commercial-stage diagnostics company focused on developing and commercializing proprietary tests for the management of immune-regulated conditions, today announced fourth quarter and full year 2014 financial results.
"We are pleased with the continued strong performance in the fourth quarter and the progress we made this past year," said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. "We remain excited about the many future growth opportunities for our business."
By revenue type, total revenues were, in millions:
| Three Months Ended December 31, | Full Year Ended December 31, | |||||
| 2014 | 2013 | Change | 2014 | 2013 | Change | |
| Product | $6.2 | $5.0 | 24% | $25.4 | $19.9 | 28% |
| Service | 5.9 | 5.2 | 13% | 24.1 | 18.9 | 28% |
| Total Revenue | $12.1 | $10.2 | 19% | $49.5 | $38.8 | 28% |
By geography, total revenues were, in millions:
| Three Months Ended December 31, | Full Year Ended December 31, | |||||
| 2014 | 2013 | Change | 2014 | 2013 | Change | |
| United States | $5.6 | $4.8 | 17% | $22.5 | $17.3 | 30% |
| Europe and ROW | 1.8 | 2.0 | -11% | 7.2 | 7.2 | 1% |
| Asia | 4.7 | 3.4 | 38% | 19.8 | 14.3 | 38% |
| Total Revenue | $12.1 | $10.2 | 19% | $49.5 | $38.8 | 28% |
Fourth Quarter 2014 Financial Results
Revenue for the fourth quarter of 2014 was $12.1 million, representing 19% growth over the fourth quarter 2013 revenue of $10.2 million.
2014 fourth quarter product revenue was $6.2 million representing a 24% increase from product revenue of $5.0 million in the fourth quarter of 2013. The increase in product revenue was primarily attributable to growth in China and Japan. Service revenue for the fourth quarter of 2014 was $5.9 million, up 13% from the 2013 fourth quarter of $5.2 million. The increase in service revenue was primarily driven by continued penetration of the U.S. market.
United States revenue was $5.6 million in the fourth quarter of 2014 representing 17% growth over the same period's revenue in the prior year of $4.8 million. Growth was driven by an increase in the number of customers and an increase in volume from existing customers.
Europe and Rest of World revenue was $1.8 million in the fourth quarter of 2014 representing an 11% decrease compared to 2013 fourth quarter revenue of $2.0 million primarily due to timing of orders.
Asia revenue was $4.7 million in the fourth quarter of 2014 representing 38% growth over the 2013 fourth quarter revenue of $3.4 million. Revenue growth in the Asia region was driven by continued strong growth in both China and Japan.
Gross profit for the fourth quarter of 2014 was $6.6 million, an increase of $0.8 million over gross profit of $5.8 million in the same period of 2013. Gross margin was 54.7%, a decrease of 1.9 percentage points from the gross margin of 56.6% in the fourth quarter of 2013 primarily as a result of a standard cost adjustment in the fourth quarter of 2013.
Operating expenses were $13.3 million in the fourth quarter of 2014, an increase of $5.4 million compared to $7.9 million in the same period last year. The increase in operating expenses was primarily due to the expansion of our sales and marketing programs and increased product development expenses related to our transplant and other pipeline programs.
EBITDA for the fourth quarter was $(6.2) million compared to $(3.0) million in the fourth quarter of 2013. Adjusted EBITDA was $(5.4) million for the fourth quarter compared to $(1.7) million in the same period in 2013. Both EBITDA and Adjusted EBITDA are non-GAAP measures.
Net loss for the fourth quarter of 2014 was $6.7 million, or $0.39 per share, compared to $3.3 million, or $0.38 per share, in the fourth quarter of 2013. Net loss per share was based on 17,337,646 and 8,721,880 weighted average ordinary shares outstanding for the fourth quarters of 2014 and 2013, respectively.
Cash and cash equivalents were $50.2 million as of December 31, 2014 compared to $76.5 million as of December 31, 2013.
Full Year 2014 Financial Results
Revenue for the full year 2014 was $49.5 million, an increase of 28% over 2013 full year revenue of $38.8 million.
For the full year 2014, product revenue was $25.4 million, representing growth of 28% over 2013 revenue of $19.9 million. 2014 service revenue was $24.1 million, a 28% increase over 2013 service revenue of $18.9 million.
Full year 2014 U.S. revenue was $22.5 million, up 30% over 2013 U.S. revenue of $17.3 million. 2014 revenue in the Europe and Rest of World region was $7.2 million, relatively flat compared to the prior year. Revenue in Asia was $19.8 million, representing growth of 38% on a year-over-year basis from the 2013 Asia revenue of $14.3 million.
Gross profit was $25.5 million for the full year 2014, an increase of $5.3 million over $20.2 million for the prior year. Gross margin for full year 2014 was 51.5%, compared to 52.0% for full year 2013. Although we made good underlying improvement in reducing kit costs and streamlining service operations, this was offset by currency effects, the impact of share-based compensation included in cost of revenue and investments to increase capacity in our service labs.
2014 operating expenses were $47.4 million, an increase of $19.9 million over the $27.5 million in operating expenses during 2013. The increase was primarily related to the expansion of our sales and marketing efforts in the United States and Asia, increased development costs related to our transplant and other pipeline programs and an increase in general and administrative costs related to being a public company.
EBITDA for the year was $(20.2) million compared to $(7.1) million in 2013. Adjusted EBITDA was $(17.7) million for the year compared to $(6.0) million in the prior year. Both EBITDA and Adjusted EBITDA are non-GAAP measures.
Full year 2014 net loss was $22.2 million, or $1.28 per share, in comparison to an $8.7 million net loss, or $2.26 per share, for full year 2013. Net loss per share was based on 17,310,148 and 3,830,837 weighted average ordinary shares outstanding for 2014 and 2013, respectively.
Business Outlook
We expect to report full year 2015 revenue of between $60 and $65 million, representing 21-31% year-over-year growth. On a constant currency basis, we expect revenue to increase 26%-37%. We anticipate gross margin will increase sequentially in the upcoming quarters and operating expenses will further increase as we invest in the business.
We expect to report revenue of between $13.2 and $13.7 million for the first quarter of 2015.
Conference Call
Oxford Immunotec will host a conference call on Tuesday, March 3, 2015 at 8:00 a.m. Eastern Time to discuss its fourth quarter and full year 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 90130051, 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 60 days.
About Oxford Immunotec
Oxford Immunotec Global PLC is a global, commercial-stage diagnostics company focused on developing and commercializing proprietary tests for the management of immune-regulated conditions. The Company's initial 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 has an additional seven product development programs that leverage the Company's proprietary technology for measuring T cell and innate immune cell responses. The two most advanced products are focused on the transplantation market. 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 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@oxfordimmunotec.com
For Investor Inquiries:
Rick Altieri
Chief Financial Officer
Oxford Immunotec
Tel: +1 (508) 573-9953
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 December 31, | Year ended December 31, | |||
| (in thousands, except share and per share data) | 2014 | 2013 | 2014 | 2013 |
| Revenue | ||||
| Product | $ 6,215 | $ 5,017 | $ 25,407 | $ 19,905 |
| Service | 5,903 | 5,208 | 24,098 | 18,879 |
| Total revenue | 12,118 | 10,225 | 49,505 | 38,784 |
| Cost of revenue | ||||
| Product | 2,418 | 1,708 | 11,225 | 8,475 |
| Service | 3,074 | 2,727 | 12,784 | 10,125 |
| Total cost of revenue | 5,492 | 4,435 | 24,009 | 18,600 |
| Gross profit | 6,626 | 5,790 | 25,496 | 20,184 |
| Operating expenses: | ||||
| Research and development | 2,848 | 563 | 7,033 | 2,146 |
| Sales and marketing | 7,111 | 3,713 | 25,487 | 13,270 |
| General and administrative | 3,390 | 3,662 | 14,837 | 12,119 |
| Total operating expenses | 13,349 | 7,938 | 47,357 | 27,535 |
| Loss from operations | (6,723) | (2,148) | (21,861) | (7,351) |
| Other income (expense): | ||||
| Interest income (expense), net | 52 | (72) | (52) | (328) |
| Foreign exchange losses | (21) | (467) | (352) | (423) |
| Other income (expense) | 75 | (584) | 245 | (470) |
| Loss before income taxes | (6,617) | (3,271) | (22,020) | (8,572) |
| Income tax expense | 75 | 57 | 154 | 92 |
| Net loss | $ (6,692) | $ (3,328) | $ (22,174) | $ (8,664) |
| Net loss per share attributable to ordinary shareholders—basic and diluted | $ (0.39) | $ (0.38) | $ (1.28) | $ (2.26) |
| Weighted-average shares used to compute net loss attributable to ordinary shareholders—basic and diluted | 17,337,646 | 8,721,880 | 17,310,148 | 3,830,837 |
| Note: 2013 share and per share amounts have been adjusted to reflect the Company's 1-for-6.705 reverse share split which occurred in November 2013. | ||||
| Reconciliation of net loss to Adjusted EBITDA | ||||
| (unaudited) | ||||
| Three months ended December 31, | Year ended December 31, | |||
| (in thousands) | 2014 | 2013 | 2014 | 2013 |
| Net loss | $ (6,692) | $ (3,328) | $ (22,174) | $ (8,664) |
| Income tax expense | 75 | 57 | 154 | 92 |
| Interest (income) expense, net | (52) | 72 | 52 | 328 |
| Depreciation and amortization | 503 | 238 | 1,742 | 1,101 |
| EBITDA | (6,166) | (2,961) | (20,226) | (7,143) |
| Reconciling items: | ||||
| Share-based compensation expense | 762 | 63 | 2,521 | 140 |
| Unrealized exchange (gains) losses | (56) | 346 | (53) | 155 |
| Loss on change in fair value of warrants | — | 279 | 22 | 279 |
| Loss on change in fair value of derivative instrument | — | 561 | — | 561 |
| Change in fair value of contingent purchase price consideration | 34 | — | 72 | — |
| Adjusted EBITDA | $ (5,426) | $ (1,712) | $ (17,664) | $ (6,008) |
| Oxford Immunotec Global PLC | ||
| Condensed consolidated balance sheets | ||
| (unaudited) | ||
| December 31, | ||
| (in thousands, except share and per share data) | 2014 | 2013 |
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 50,165 | $ 76,494 |
| Restricted cash | 200 | 87 |
| Accounts receivable, net | 6,823 | 4,754 |
| Inventory | 6,425 | 5,450 |
| Prepaid expenses and other | 2,755 | 2,242 |
| Total current assets | 66,368 | 89,027 |
| Restricted cash, non-current | 192 | 362 |
| Property and equipment, net | 4,537 | 2,964 |
| In-process research and development | 2,399 | — |
| Goodwill | 50 | — |
| Other intangible assets, net | 273 | 331 |
| Other assets | 30 | 60 |
| Total assets | $ 73,849 | $ 92,744 |
| Liabilities and shareholders' equity | ||
| Current liabilities: | ||
| Accounts payable | $ 2,368 | $ 2,310 |
| Accrued liabilities | 7,070 | 6,936 |
| Deferred income | 1,993 | 1,540 |
| Current portion of loans payable | 137 | 170 |
| Taxes payable | — | 177 |
| Total current liabilities | 11,568 | 11,133 |
| Long-term portion of loans payable | 454 | 563 |
| Contingent purchase price consideration | 1,218 | — |
| Other liabilities | — | 296 |
| Total liabilities | 13,240 | 11,992 |
| Shareholders' equity: | ||
| Ordinary shares, £0.006705 nominal value; 40,103,528 and 25,189,285 shares authorized at December 31, 2014 and 2013, respectively, and 17,614,650 and 17,255,267 shares issued and outstanding at December 31, 2014 and 2013, respectively | 192 | 188 |
| Additional paid-in capital | 186,816 | 183,967 |
| Accumulated deficit | (121,829) | (99,655) |
| Accumulated other comprehensive loss | (4,570) | (3,748) |
| Total shareholders' equity | 60,609 | 80,752 |
| Total liabilities and shareholders' equity | $ 73,849 | $ 92,744 |