Oxford Immunotec Reports Second Quarter 2018 Financial Results

  • Second quarter Tuberculosis (TB) revenue growth of 17%, with record TB revenue in the United States
  • Gross margin improved by 450 basis points compared to prior year period and 630 basis points on a sequential basis
  • Launch of transformative T-Cell Select™ product to enable full automation of T-SPOT®.TB test

OXFORD, United KingdomandMARLBOROUGH, Mass., July 31, 2018 (GLOBE NEWSWIRE) –Oxford Immunotec Global PLC (Nasdaq: OXFD), a global, high-growth diagnostics company, today announced second quarter 2018 financial results.

“We are pleased with our second quarter performance, which included a strong uptick in TB revenue growth, robust gross margin expansion, and continued progress advancing the company towards profitability,” said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec.

By revenue type, total revenues were, in millions:

    Three Months Ended June 30,  
2018   2017   Percent Change
Product $     11.7 $     10.4        12%
Service        17.6        15.7 12%
Total Revenue   $    29.3   $    26.1   12%  

 

By indication, total revenues were, in millions:

    Three Months Ended June 30,  
2018   2017   Percent Change
Tuberculosis $     25.0 $     21.3        17%
Tick-Borne Disease and Other        4.3        4.8 -9%
Total Revenue   $   29.3   $   26.1   12%  

 

By geography, total revenues were, in millions:

Three Months Ended June 30,
        Percent Change
2018 2017 As Reported Constant Currency (1)
United States $17.7 $   16.1 10% 10%
Europe & ROW 2.2            1.9 17% 10%
Asia            9.4            8.1 16% 15%
Total revenue $ 29.3 $ 26.1 12% 11%

 (1) Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure “constant currency basis” in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. We consider the use of a period over period revenue comparison on a constant currency basis to be helpful to investors, as it provides a revenue growth measure free of positive or negative volatility due to currency fluctuations.

Second Quarter 2018 Financial Results

Revenue for the second quarter of 2018 was $29.3 million, representing a 12% increase from second quarter 2017 revenue of $26.1 million. On a constant currency basis, revenue growth was 11% versus the prior year period. Tuberculosis revenue for the second quarter of $25.0 million increased 17% over the prior year period.

2018 second quarter product revenue was $11.7 million, representing a 12% increase from product revenue of $10.4 million in the second quarter of 2017. The increase was attributable to strong growth in both Asia and Europe & ROW. Service revenue for the second quarter of 2018 was $17.6 million, up 12% from 2017 second quarter service revenue of $15.7 million. The increase in service revenue was primarily driven by increased tuberculosis revenues in the United States and United Kingdom.

United States revenue was $17.7 million in the second quarter of 2018, representing a 10% increase from revenue of $16.1 million in the prior year period. The increase was due to growth in our core tuberculosis business, which was partially offset by an expected decline in blood donor screening revenue.

Europe & ROW revenue was $2.2 million in the second quarter of 2018, representing a 17% increase compared to the second quarter of 2017. On a constant currency basis, Europe & ROW revenue increased 10% versus the second quarter of 2017. The increase was driven by strong tuberculosis revenue growthin core European markets, especially in the United Kingdom.

Asia revenue was $9.4 million in the second quarter of 2018, representing an increase of 16% compared to 2017 second quarter revenue of $8.1 million. On a constant currency basis, Asia revenue increased 15% versus the second quarter of 2017.

Gross profit for the second quarter of 2018 was $16.6 million, an increase of approximately $3.0 million from gross profit of $13.6 million in the same period of 2017. Gross margin was 56.7%, an increase of 450 basis points from gross margin of 52.2% in the second quarter of 2017. The increase in gross margin was primarily the result of lower royalty expenses, product mix, and continued operating improvements.

Operating expenses were $21.4 million in the second quarter of 2018, a decrease of approximately $10.0 million compared to $31.4 million in the second quarter of 2017. Excluding settlement and other one-time items in both periods, operating expenses for the second quarter of 2018 decreased approximately $2.2 million compared to the second quarter of 2017.

Net loss for the second quarter of 2018 was $6.5 million, or $0.25 per share, compared to $16.8 million, or $0.74 per share, in the second quarter of 2017. Net loss per share was based on 25,845,124 and 22,805,379 weighted average ordinary shares outstanding for the second quarters of 2018 and 2017, respectively.

EBITDA for the second quarter of 2018 was $(4.0) million compared to $(17.4) million in the second quarter of 2017. Adjusted EBITDA was $(1.8) million for the second quarter of 2018 compared to $(6.3) million in the same period in 2017. Both EBITDA and Adjusted EBITDA are non-GAAP measures.

Business Outlook

We continue to expect to report full year 2018 revenue of between $112 and $115 million, representing 9% – 12% year-over-year growth as reported.

Conference Call

Oxford Immunotec will host a conference call on Tuesday, July 31, 2018 at 8:00 a.m. Eastern Time to discuss its second quarter 2018 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 9268558 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, high-growth diagnostics company focused on developing and commercializing proprietary tests for the management of underserved 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 Company’s second product line is a range of assays for tick-borne diseases, such as Lyme disease. The Company is headquartered near Oxford, U.K. and in Marlborough, Mass.  Additional information can be found at www.oxfordimmunotec.com.

T-SPOT, T-Cell Select and the Oxford Immunotec logo are trademarks of Oxford Immunotec Ltd.  Immunetics is a trademark of Immunetics, Inc.

Forward-Looking Statements

This release contains forward-looking statements that involve risks and uncertainties, including statements about our anticipated plans, objectives, and intentions, including effects on future financial and operating results, prospects for sales of our products and other statements that are not historical facts. The forward-looking statements in this release are based on current expectations, assumptions and data available as of the date of this release and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to: decisions by regulatory authorities, hospitals and other health care institutions, laboratories, physicians, patients and third party payers that could affect the Company’s business and prospects; as well as our ability to expeditiously and successfully expand our sales and distribution networks. The risks included above are not exhaustive. Other factors that could adversely affect our business and prospects are described under the “Risk Factors” section in our filings with the Securities and Exchange Commission (“SEC”). Our filings are available for free by visiting the investor section of our website, www.oxfordimmunotec.com, or the SEC’s website, www.sec.gov.

Investors should give careful consideration to these risks and uncertainties. Forward-looking statements contained herein 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 contained herein, which speak only as of the date of this release. 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.

For detailed financial information, please click here.

CONTACTS:

For Media and Investor Inquiries:
Karen Koski
VP, Strategy and Investor Relations
Oxford Immunotec
Tel: +1 (508) 556-1377
kkoski@oxfordimmunotec.com