OXFORD, United Kingdom and MARLBOROUGH, Mass., August 4, 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 second quarter 2015 financial results.
“We are extremely pleased with our second quarter financial and operating results,” said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. “Our sales performance came in above our expectations led by strong growth in all our geographies and we are pleased with the regulatory and clinical progress we are making on our T-SPOT.CMV test.”
By revenue type, total revenues were, in millions:
| Three Months Ended June 30, | |||||||
| 2015 | 2014 | Percent Change | |||||
| Product | $ | 6.6 | $ | 5.9 | 12% | ||
| Service | 7.7 | 5.9 | 29% | ||||
| Total Revenue | $ | 14.3 | $ | 11.8 | 21% | ||
By geography, total revenues were, in millions:
| Three Months Ended June 30, | |||||||||
| Percent Change | |||||||||
| 2015 | 2014 | As Reported | Constant Currency (1) | ||||||
| United States | $ | 7.3 | $ | 5.5 | 33% | 33% | |||
| Europe and ROW | 1.9 | 1.8 | 6% | 21% | |||||
| Asia | 5.1 | 4.5 | 12% | 27% | |||||
| Total Revenue | $ | 14.3 | $ | 11.8 | 21% | 29% | |||
(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.
Second Quarter 2015 Financial Results
Revenue for the second quarter of 2015 was $14.3 million, representing 21% growth over the second quarter 2014 revenue of $11.8 million. On a constant currency basis, revenue growth was 29% versus the prior year period.
2015 second quarter product revenue was $6.6 million representing a 12% increase from product revenue of $5.9 million in the second quarter of 2014. The increase in product revenue was primarily attributable to volume growth in both Asia and Europe & ROW. Service revenue for the second quarter of 2015 was $7.7 million, up 29% from the 2014 second quarter of $5.9 million. The increase in service revenue was primarily driven by increased volume, specifically in the institutional and physicians’ office segments, and increased average selling prices in the U.S. market.
United States revenue was $7.3 million in the second quarter of 2015 representing 33% growth over the same period’s revenue of $5.5 million in the prior year. Growth was driven primarily by an increased number of customers and increased volume from existing customers.
Europe & ROW revenue was $1.9 million in the second quarter of 2015 representing a 6% increase compared to 2014 second quarter revenue of $1.8 million. On a constant currency basis, Europe & ROW grew 21% versus the second quarter of 2014, due partially to quarter to quarter volatility in the timing of orders.
Asia revenue was $5.1 million in the second quarter of 2015 representing 12% growth over the 2014 second quarter revenue of $4.5 million. On a constant currency basis, Asia grew 27% versus the second quarter of 2014. The increase was driven by continued strong growth in both China and Japan.
Gross profit for the second quarter of 2015 was $7.8 million, an increase of $2.0 million over gross profit of $5.8 million in the same period of 2014. Gross margin was 54.4%, an increase of 5.2 percentage points from the gross margin of 49.2% in the second quarter of 2014 primarily due to operational efficiencies associated with increased volume and reduced kit costs, 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 $14.4 million in the second quarter of 2015, an increase of $2.6 million compared to $11.8 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 second quarter was $(6.8) million compared to $(5.8) million in the second quarter of 2014. Adjusted EBITDA was $(6.5) million for the second 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 second quarter of 2015 was $7.3 million, or $0.33 per share, compared to $6.2 million, or $0.36 per share, in the second quarter of 2014. Net loss per share was based on 22,245,682 and 17,292,251 weighted average ordinary shares outstanding for the second quarters of 2015 and 2014, respectively.
Cash and cash equivalents were $90.4 million as of June 30, 2015 compared to $94.0 million as of March 31, 2015.
Business Outlook
We expect to report revenue of between $16.8 and $17.6 million for the third quarter of 2015.
We expect to report full year 2015 revenue of between $61 and $64 million, representing 23%-29% year-over-year growth. We expect revenue to increase 29% to 35% for the year using constant exchange rates.
Conference Call
Oxford Immunotec will host a conference call on Tuesday, August 4, 2015 at 8:00 a.m. Eastern Time to discuss its second 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 88979888, 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.
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| 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 |
| SOURCE: Oxford Immunotec |
