synnex
Nov 03,2015

Third Quarter 2015 Financial Results

  • Third quarter revenue of $17.9 million increased 41% on a constant currency basis compared to prior year period
  • Gross margin improved by 390 basis points compared to prior year period
  • Two seasoned diagnostics executives appointed to the Board of Directors

OXFORD, United Kingdom and MARLBOROUGH, Mass., Nov. 03, 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 third quarter 2015 financial results.

"We are very pleased with our third quarter financial and operating results," said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. "Our sales performance exceeded expectations, driven by strong growth in our United States and Asia geographies, and we are pleased with the progress we are making on our pipeline."

By revenue type, total revenues were, in millions:

   
  Three Months Ended September 30,
                  Percent
    2015       2014     Change
           
Product $ 8.3     $ 6.5       28 %
Service   9.6       6.8       41 %
Total revenue   $ 17.9     $ 13.3       35 %
                       

By geography, total revenues were, in millions:

   
  Three Months Ended September 30,
          Percent Change
   
 
2015
     
2014
    As
Reported
  Constant
Currency
(1)
               
United States $ 9.3     $ 6.5       44 %     44 %
Europe & ROW     1.6       1.7       -4 %       8 %
Asia   7.0       5.1       36 %     48 %
Total revenue $ 17.9     $ 13.3       35 %     41 %
                               

(1) We evaluate our revenue on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP measure, excludes the impact of fluctuations in foreign currency exchange rates.

Third Quarter 2015 Financial Results

Revenue for the third quarter of 2015 was $17.9 million, representing 35% growth over the third quarter 2014 revenue of $13.3 million. On a constant currency basis, revenue growth was 41% versus the prior year period.

2015 third quarter product revenue was $8.3 million representing a 28% increase from product revenue of $6.5 million in the third quarter of 2014. The increase in product revenue was primarily attributable to volume growth in Asia. Service revenue for the third quarter of 2015 was $9.6 million, up 41% from the 2014 third quarter of $6.8 million. The increase in service revenue was primarily driven by increased volume, specifically in the institutional and patient testing segments, in the United States.

United States revenue was $9.3 million in the third quarter of 2015 representing 44% growth over the same period's revenue of $6.5 million in the prior year. Growth was driven primarily by increases in the institutional and patient testing segments.

Europe & ROW revenue was $1.6 million in the third quarter of 2015 representing a 4% decrease compared to 2014 third quarter revenue of $1.7 million. On a constant currency basis, Europe & ROW grew 8% versus the third quarter of 2014. Asia revenue was $7.0 million in the third quarter of 2015 representing 36% growth over the 2014 third quarter revenue of $5.1 million. On a constant currency basis, Asia grew 48% versus the third quarter of 2014. The increase was driven by continued strong growth in both China and Japan.

Gross profit for the third quarter of 2015 was $9.9 million, an increase of $3.1 million over gross profit of $6.8 million in the same period of 2014. Gross margin was 55.0%, an increase of 390 basis points from the gross margin of 51.1% in the third quarter of 2014. The increase was primarily due to operational efficiencies associated with increased volume and operational improvements in our service business, partially offset by the impact of foreign currency exchange rate changes and increased share-based compensation charges in 2015 compared to 2014.

Operating expenses were $14.7 million in the third quarter of 2015, an increase of $1.7 million compared to $13.0 million in the same period last year. The increase in operating expenses was primarily due to headcount increases related to both research and development and sales and marketing, as well as increased costs from clinical studies performed during the quarter.

EBITDA for the third quarter was $(3.8) million compared to $(5.5) million in the third quarter of 2014. Adjusted EBITDA was $(2.0) million for the third quarter compared to $(4.9) million in the same period in 2014. Both EBITDA and Adjusted EBITDA are non-GAAP measures.

Net loss for the third quarter of 2015 was $4.5 million, or $0.20 per share, compared to $6.1 million, or $0.35 per share, in the third quarter of 2014. Net loss per share was based on 22,259,840 and 17,333,441 weighted average ordinary shares outstanding for the third quarters of 2015 and 2014, respectively. 

Cash and cash equivalents were $88.5 million as of September 30, 2015 compared to $90.4 million as of June 30, 2015.

Business Outlook

We expect to report revenue of between $15.9 and $16.7 million for the fourth quarter of 2015.

We expect to report full year 2015 revenue of between $61.9 and $62.7 million, representing 25%-27% year-over-year growth. We expect revenue to increase 31% to 32% for the year using constant exchange rates.

Board of Directors Appointments

On November 3, 2015, the Company announced that seasoned diagnostics executives Ronald Andrews Jr. and A. Scott Walton will join the Company's Board of Directors effective November 4, 2015. The addition of Mr. Andrews and Mr. Walton to Oxford Immunotec's Board of Directors increases the total number of directors to eight.

Conference Call

Oxford Immunotec will host a conference call on Tuesday, November 3, 2015 at 8:00 a.m. Eastern Time to discuss its third quarter 2015 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 65863291, 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, commercial-stage 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 is the Company's second product and the first in a series of products intended for the transplantation market. Overall, the Company has seven 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@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 September 30,   Nine months ended September 30,
(in thousands, except share and per share data)     2015       2014       2015       2014  
Revenue                
Product   $   8,310     $   6,480     $   22,045     $   19,192  
Service     9,634       6,845       23,952       18,195  
Total revenue     17,944       13,325       45,997       37,387  
Cost of revenue                
Product     3,757       2,944       9,712       8,807  
Service     4,312       3,568       11,514       9,710  
Total cost of revenue     8,069       6,512       21,226       18,517  
Gross profit     9,875       6,813       24,771       18,870  
Operating expenses:                
Research and development     3,187       1,946       8,392       4,185  
Sales and marketing     7,381       7,468       22,549       18,376  
General and administrative     4,137       3,567       11,788       11,447  
Total operating expenses     14,705       12,981       42,729       34,008  
Loss from operations     (4,830 )     (6,168 )     (17,958 )     (15,138 )
Other income (expense):                
Interest expense, net     (19 )     (41 )     (53 )     (104 )
Foreign exchange gains (losses)     476       76       (33 )     (331 )
Other (expense) income     (64 )     91       50       170  
Loss before income taxes     (4,437 )     (6,042 )     (17,994 )     (15,403 )
Income tax expense     46       53       94       79  
Net loss   $   (4,483 )   $   (6,095 )   $   (18,088 )   $   (15,482 )
                 
Net loss per share attributable to ordinary shareholders—basic and diluted   $   (0.20 )   $   (0.35 )   $   (0.84 )   $   (0.89 )
                 
Weighted-average shares used to compute net loss attributable to ordinary shareholders—basic and diluted     22,259,840       17,333,441       21,619,375       17,300,881  
 

 

                 
Reconciliation of net loss to Adjusted EBITDA
(unaudited)
   
    Three months ended September 30,   Nine months ended September 30,
(in thousands)     2015       2014       2015       2014  
Net loss   $   (4,483 )   $   (6,095 )   $   (18,088 )   $   (15,482 )
Income tax expense     46       53       94       79  
Interest expense, net     19       41       53       104  
Depreciation and amortization     597       479       1,533       1,239  
EBITDA     (3,821 )     (5,522 )     (16,408 )     (14,060 )
                 
Reconciling items:                
Share-based compensation expense     994       734       2,582       1,759  
Unrealized exchange losses (gains)     422       (164 )     (193 )     3  
Loss on change in fair value of warrants                       22  
Change in fair value of contingent purchase price consideration     52       38       148       38  
Intangible asset impairment charge     385             385        
Adjusted EBITDA   $   (1,968 )   $   (4,914 )   $   (13,486 )   $   (12,238 )
 

 

         
Oxford Immunotec Global PLC
Condensed consolidated balance sheets
(unaudited)
   
   
    September 30,   December 31,
(in thousands, except share and per share data)     2015       2014  
Assets        
Current assets:        
Cash and cash equivalents   $   88,483     $   50,165  
Restricted cash     112       200  
Accounts receivable, net     7,444       6,823  
Inventory     6,473       6,425  
Prepaid expenses and other     2,718       2,755  
Total current assets     105,230       66,368  
Restricted cash, non-current     80       192  
Property and equipment, net     5,706       4,537  
In-process research and development     1,832       2,399  
Goodwill     46       50  
Other intangible assets, net     278       273  
Other assets     19       30  
Total assets   $  113,191     $   73,849  
         
Liabilities and shareholders' equity        
Current liabilities:        
Accounts payable   $   3,213     $   2,368  
Accrued liabilities     7,886       7,070  
Deferred income     1,686       1,993  
Current portion of loans payable     127       137  
Taxes payable     147        
Total current liabilities     13,059       11,568  
Long-term portion of loans payable     352       454  
Contingent purchase price consideration     1,274       1,218  
Total liabilities     14,685       13,240  
         
Shareholders' equity:        
Ordinary shares, £0.006705 nominal value; 36,183,293 shares authorized at September 30, 2015 and December 31, 2014, and 22,538,047 and 17,614,650 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively     242       192  
Additional paid-in capital     243,126       186,816  
Accumulated deficit     (139,917 )     (121,829 )
Accumulated other comprehensive loss     (4,945 )     (4,570 )
Total shareholders' equity     98,506       60,609  
Total liabilities and shareholders' equity   $  113,191     $   73,849