Oxford Immunotec Limited Reports 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., November 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 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:
By geography, total revenues were, in millions:
(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 TSPOT. 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, UK and in Marlborough, Mass. Additional information can be found at www.oxfordimmunotec.com.
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? 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., November 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 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 | % | |||||
| 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 TSPOT. 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, UK and in Marlborough, Mass. Additional information can be found at www.oxfordimmunotec.com.
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