• Total revenue of $10.5 million in 1H16, up 41% on 1H15
• Revenue from Quarterly Services Fees – generated by sales of glucose test strips - $10.3 million, up 58% on 1H15
• Net loss of $1.2 million, improvement from 1H15 net loss of $4.1 million and trending towards breakeven
• R&D expenditure $7.9 million, down 20% on 1H15 due to refocus of product development pipeline and containing costs
• Cash balance of $13.2 million, up from $10.7 million
Universal Biosensors (ASX:UBI) today released its financial results for the first half of 2016.
For the six months to June 30, total revenue increased by 41% to $10.5 million, from $7.5 million in the prior corresponding period (pcp), driven by an underlying increase in Quarterly Services Fees (QSF) from increased sales of One Touch Verio blood glucose test strips by LifeScan. Revenue from QSF for 1H16 was $10.3 million, up 58% from $6.5 million in the pcp.
Under an agreement with LifeScan, UBI receives a service fee for each Verio strip sold by LifeScan of US1.25c for the first 500 million strips sold in any given year, and then US0.75c for each subsequent strip sold for the remainder of that year. The revenue in 1H16 reflects the higher per strip rate of US1.25c, noting the switch to the new lower rate of US0.75c per strip occurred during Q2 2016. At the start of each year the 500 million threshold is reset and the service fee returns to US1.25c.
Revenue from sales of test strips for Siemens’ Xprecia Stride Coagulation Analyzer were $183,480 in 1H16, down 56% on the pcp. UBI believes Siemens has sufficient inventory to service markets where it is currently marketing the Xprecia Stride.
UBI reported a net loss for the period of $1.2 million, a significant improvement on a net loss of $4.1 million in the pcp. Operating cash flow has also improved with the company continuing to trend towards breakeven on the back of higher revenue and reducing cash burn.
Executive Chairman Andrew Denver said: “Our focus on costs and ensuring our product development pipeline is on the right track will deliver significant returns for the company and our shareholders. Our relationships with LifeScan and Siemens also remain strong and will support our growth and commitment to delivering the best point-of-care health products to patients.”
Research and development expenses were $7.9 million for 1H16, down 20% from $9.9 million in the pcp, reflecting a new focus on UBI’s product development pipeline and cost containment. General and administrative expenses were $2.5 million, down 19% on the pcp’s $3.1 million.
As at June 30 2016, UBI had a cash balance of $13.2 million, 23% up from $10.7 million in the pcp.
• Revenue from Quarterly Services Fees – generated by sales of glucose test strips - $10.3 million, up 58% on 1H15
• Net loss of $1.2 million, improvement from 1H15 net loss of $4.1 million and trending towards breakeven
• R&D expenditure $7.9 million, down 20% on 1H15 due to refocus of product development pipeline and containing costs
• Cash balance of $13.2 million, up from $10.7 million
Universal Biosensors (ASX:UBI) today released its financial results for the first half of 2016.
For the six months to June 30, total revenue increased by 41% to $10.5 million, from $7.5 million in the prior corresponding period (pcp), driven by an underlying increase in Quarterly Services Fees (QSF) from increased sales of One Touch Verio blood glucose test strips by LifeScan. Revenue from QSF for 1H16 was $10.3 million, up 58% from $6.5 million in the pcp.
Under an agreement with LifeScan, UBI receives a service fee for each Verio strip sold by LifeScan of US1.25c for the first 500 million strips sold in any given year, and then US0.75c for each subsequent strip sold for the remainder of that year. The revenue in 1H16 reflects the higher per strip rate of US1.25c, noting the switch to the new lower rate of US0.75c per strip occurred during Q2 2016. At the start of each year the 500 million threshold is reset and the service fee returns to US1.25c.
Revenue from sales of test strips for Siemens’ Xprecia Stride Coagulation Analyzer were $183,480 in 1H16, down 56% on the pcp. UBI believes Siemens has sufficient inventory to service markets where it is currently marketing the Xprecia Stride.
UBI reported a net loss for the period of $1.2 million, a significant improvement on a net loss of $4.1 million in the pcp. Operating cash flow has also improved with the company continuing to trend towards breakeven on the back of higher revenue and reducing cash burn.
Executive Chairman Andrew Denver said: “Our focus on costs and ensuring our product development pipeline is on the right track will deliver significant returns for the company and our shareholders. Our relationships with LifeScan and Siemens also remain strong and will support our growth and commitment to delivering the best point-of-care health products to patients.”
Research and development expenses were $7.9 million for 1H16, down 20% from $9.9 million in the pcp, reflecting a new focus on UBI’s product development pipeline and cost containment. General and administrative expenses were $2.5 million, down 19% on the pcp’s $3.1 million.
As at June 30 2016, UBI had a cash balance of $13.2 million, 23% up from $10.7 million in the pcp.
