- First quarter revenue of $14.8 million, an increase of 27% compared to prior year period
- Gross margins expanded 360bps to 71.4%
- 86% reduction in net loss to $1.5m
OXFORD, United Kingdom and MARLBOROUGH, Mass., May 9, 2019 (GLOBE NEWSWIRE) –Oxford Immunotec Global PLC (Nasdaq: OXFD) (the “Company”), a global, high-growth diagnostics company, today announced first quarter 2019 financial results.
“The Company got off to a strong start in 2019 with robust growth in all geographies and continued execution on our strategic priorities” said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. “As we repurpose the Company around our more focused business model, we are starting to see the emergence of higher growth, and improving profitability metrics.”
By revenue type, total revenues were, in millions:
|Three Months Ended March 31,|
By geography, total revenues were, in millions:
|Three Months Ended March 31,|
|2019||2018||As Reported (1)||Constant Currency (1)|
|United States $||5.5||$ 3.7||50%||50%|
|Europe & ROW||2.8||2.2||24%||32%|
|Total revenue $||14.8||$ 11.7||27%||29%|
(1) Oxford Immunotec completed its sale of the Company’s U.S. laboratory services business on November 6, 2018. As such, Total Revenue, Product Revenue, and United States Revenue for the three months ended March 31, 2019 and March 31, 2018 are not fully comparable. Total Revenue, Product Revenue, and United States Revenue for the three months ended March 31, 2018 include sales to our former U.S. laboratory services business at our intercompany transfer price that were formerly eliminated in consolidation. Total Revenue, Product Revenue, and United States Revenue for the three months ended March 31, 2019 include revenue from T-SPOT®.TB test kits and related accessories sold to Quest Diagnostics under the terms of a long-term supply agreement.
(2) 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.
First Quarter 2019 Financial Results
Revenue for the first quarter of 2019 was $14.8 million, representing a 27% increase from first quarter 2018 revenue of $11.7 million. On a constant currency basis, revenue increased 29% versus the prior year period.
2019 first quarter product revenue was $13.8 million, representing a 37% increase from product revenue of $10.1 million in the first quarter of 2018. The increase was primarily attributable to higher revenue in all geographical regions. Service revenue for the first quarter of 2019 was $0.9 million, a 39% decrease from 2018 first quarter service revenue of $1.6 million. The decrease in service revenue resulted from the company’s exit from the blood donor screening business, partially offset by growth in tuberculosis testing volumes at our U.K. Oxford Diagnostic Laboratories.
United States revenue was $5.5 million in the first quarter of 2019, representing a 50% increase from revenue of $3.7 million in the prior year period. The increase was due to increased tuberculosis testing volumes and a higher selling price compared to the intercompany transfer price utilitised for the prior year period; offset by a decline in revenue from the Company’s exit from the blood donor screening business.
Europe & rest of world, or Europe & ROW, revenue was $2.8 million in the first quarter of 2019, representing a 24% increase compared to the first quarter of 2018. On a constant currency basis, Europe & ROW increased 32% versus the first quarter of 2018. The increase was driven by strong tuberculosis revenue growthin the U.K., continental European markets and countries outside of Europe.
Asia revenue was $6.5 million in the first quarter of 2019, representing an increase of 13% compared to 2018 first quarter revenue of $5.7 million. On a constant currency basis, Asia revenue increased 15% versus the first quarter of 2018. The increase was due primarily to growth in revenues in China and other Asian countries.
Gross profit for the first quarter of 2019 was $10.6 million, an increase of approximately $2.6 million from gross profit of $7.9 million in the same period of 2018. Gross margin was 71.4%, an increase of 360 basis points from gross margin of 67.8% in the first quarter of 2018. The first quarter 2019 gross margin improvement was driven by the Company’s exit from the blood donor screening business, the change in pricing from the intercompany transfer price in the prior year period, as well as from operational improvements.
Operating expenses were $13.9 million in the first quarter of 2019, a decrease of approximately $1.4 million compared to $15.3 million in the first quarter of 2018.
Net loss for the first quarter of 2019 was $1.5 million, or $0.06 per share, compared to $10.3 million, or $0.40 per share, in the first quarter of 2018. Net loss per share was based on 26,515,871 and 25,718,910 weighted average ordinary shares outstanding for the first quarters of 2019 and 2018, respectively.
EBITDA for the first quarter of 2019 was $(3.8) million compared to $(7.2) million in the first quarter of 2018. Adjusted EBITDA was $(2.3) million for the first quarter of 2019 compared to $(5.4) million in the same period in 2018. Both EBITDA and Adjusted EBITDA are non-GAAP measures.
For full year 2019, the Company continues to expect revenue of between $69 and $72 million. Based off the mid-point of this annual revenue guidance range, the company expects 27 to 28% of full year revenues to fall in the second quarter.
Oxford Immunotec will host a conference call on Thursday, May 9, 2019 at 8:00 a.m. Eastern Daylight Time to discuss its first quarter 2019 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 6687808 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 assays for immunology and infectious disease. The Company’s 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, Mass. Additional information can be found at www.oxfordimmunotec.com.
T-SPOT, the Oxford Immunotec logo, ODL, and the Oxford Diagnostic Laboratories logo are trademarks of Oxford Immunotec Limited. Immunetics is a trademark of Immunetics, Inc.
This release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this release are forward-looking statements. This includes statements about Oxford Immunotec’s anticipated plans and objectives, future performance and revenues, financial condition, prospects for sales of its products, growth, strategies, expectations and objectives of management. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements contained in this release reflect Oxford Immunotec’s current expectations and are subject to risks and uncertainties. Actual results may differ materially from those projected or implied by forward-looking statements. Other factors that could adversely affect Oxford Immunotec’s business and prospects are described under the “Risk Factors” section in its filings with the Securities and Exchange Commission (“SEC”). Oxford Immunotec’s SEC filings are available for free by visiting the investor section of its 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. 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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