OXFORD, United Kingdom and MARLBOROUGH, Mass., August 4, 2020(GLOBE NEWSWIRE) –Oxford Immunotec Global PLC (Nasdaq: OXFD) (the “Company”), a global diagnostics company, today announced second quarter 2020 financial results.
“We knew revenue would be significantly impacted in the quarter, however, we were able to keep advancing our strategic priorities and ensuring the business is set to return to growth mode coming out of the pandemic,” said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. “Testing volumes are recovering in all regions and, absent a significant global re-emergence of COVID-19, we are confident in a strong recovery in the business.”
Revenues, broken out by geographic location, were as follows, in millions:
|Three Months Ended June 30|
|2020||2019||As Reported||Constant Currency (1)|
|United States||$ 1.2||$ 7.8||(85)%||(85)%|
|Europe & ROW||1.0||2.2||(54)%||(53)%|
|Total Revenue||$ 5.8||$ 19.6||(70)%||(70)%|
(1) Constant currency basis is a non-GAAP financial measure. 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. This non-GAAP financial measure may be different from non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Moreover, presentation of revenue on a constant currency basis is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of changing foreign currency exchange rates has an actual effect on our operating results.
Second Quarter 2020 Financial Results
Revenue for the second quarter of 2020 was $5.8 million, representing a 70% decrease from second quarter 2019 revenue of $19.6 million. On a constant currency basis, revenue decreased 70% versus the prior year period.
United States revenue was $1.2 million in the second quarter of 2020, representing an 85% decrease from revenue of $7.8 million in the prior year period. The decrease was driven by the impact of COVID-19 on testing volumes and the impact of planned inventory destocking by Quest.
Europe & rest of world, or Europe & ROW, revenue was $1.0 million in the second quarter of 2020, representing a 54% decrease compared to the second quarter of 2019. On a constant currency basis, Europe & ROW decreased 53% versus the second quarter of 2019. The decrease was driven by the impact of COVID-19 on testing volumes.
Asia revenue was $3.6 million in the second quarter of 2020, representing a decrease of 62% compared to 2019 second quarter revenue of $9.6 million. On a constant currency basis, Asia revenue decreased 63% versus the second quarter of 2019. The decrease was due primarily to a slowdown in testing as a result of the COVID-19 pandemic.
Gross profit for the second quarter of 2020 was $3.7 million, a decrease of approximately $10.5 million from gross profit of $14.2 million in the same period of 2019. Gross margin was 62.8%, a decrease of 960 basis points from gross margin of 72.4% in the second quarter of 2019. The second quarter 2020 gross margin decrease was a result of the significant global volume reduction as a result of the COVID-19 pandemic and a provision for slow moving inventory.
Operating expenses were $13.5 million in the second quarter of 2020, a decrease of approximately $1.7 million compared to $15.2 million in the second quarter of 2019.
Net loss for the second quarter of 2020 was $9.7 million, or $0.37 per share on a basic and diluted basis, compared to net income of $0.6 million, or $0.02 per share on a basic and diluted basis, in the second quarter of 2019.
EBITDA for the second quarter of 2020 was $(9.5) million compared to $(0.2) million in the second quarter of 2019. Adjusted EBITDA was $(8.9) million for the second quarter of 2020 compared to $(48,000) in the same period in 2019. Both EBITDA and Adjusted EBITDA are non-GAAP measures.
Given the uncertainty of the scope and duration of the COVID-19 pandemic, as well as its impact on our revenues and results from operations, we are not providing annual revenue guidance at this time.
We expect third quarter revenues to be between $18.0 to $19.0 million as testing volumes continue to recover from the impact of COVID-19 during the second half of 2020.
Oxford Immunotec will host a conference call on Tuesday, August 4, 2020 at 8:00 a.m. Eastern Daylight Time to discuss its second quarter 2020 financial results and to give a general business update. 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 4337217 approximately 15 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. We bring energy and invention to a world in need of diagnostic truth. Our leading product, the T-SPOT®.TB test, is used for diagnosing infection with Tuberculosis, the world’s largest cause of death from infectious disease. 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 is headquartered near Oxford, U.K. and in Marlborough, MA. Additional information can be found at www.oxfordimmunotec.com.
T-SPOT and the Oxford Immunotec logo are trademarks of Oxford Immunotec Limited.
Certain statements in this press release constitute forward-looking statements within the meaning of applicable U.S. and U.K. laws and regulations, including under the U.S. Private Securities Litigation Reform Act of 1995. Any statements contained herein which do not describe historical or current facts, including statements about Oxford Immunotec’s plans to ensure that when the COVID-19 disruption eases, Oxford Immunotec is best positioned to meet the needs of the TB market and drive long-term growth and statements regarding uncertainties around the impact of COVID-19 on Oxford Immunotec’s revenues and results of operations, constitute forward-looking statements. Any forward-looking statements are based on our management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks that the COVID-19 pandemic may disrupt the company’s business and the global healthcare system more severely than anticipated, as well as those other risks described in Oxford Immunotec’s filings with the U.S. Securities and Exchange Commission (the “Commission”), including the company’s Annual Report on Form 10-K for the year-ended December 31, 2019 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and in any other reports it subsequently files with the Commission, including any other Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Oxford Immunotec’s filings with the Commission are available for free by visiting the investor section of our website, www.oxfordimmunotec.com, or the Commission’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. Investors should not place undue reliance on forward-looking statements contained herein, which speak only as of the date of this release. Oxford Immunotec does 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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