Sign up online today & collaborate
or click here to find out more
Oxford, UK & Marlborough, USA – Oxford Immunotec Global PLC, a global, commercial-stage diagnostics company focused on developing and commercializing proprietary tests for the management of immune-regulated conditions, today announced first quarter 2016 financial results.
“We are very happy with our first quarter financial and operating results,” said Dr. Peter Wrighton-Smith, Chief Executive Officer of Oxford Immunotec. “Our sales performance was in line with our expectations, with solid growth coming from our United States and Asia geographies.”
By revenue type, total revenues were, in millions:
Three Months Ended March 31,
2016 2015 Percent Change
Product $8.1 $7.1 14%
Service 9.0 6.7 34%
Total Revenue $17.1 $13.8 24%
By geography, total revenues were, in millions:
Three Months Ended March 31,
2016 2015 As Reported Constant Currency
United States $8.7 $6.4 37% 37%
Europe & ROW 1.6 1.7 -8% -3%
Asia 6.8 5.7 19% 15%
Total Revenue $17.1 $13.8 24% 23%
(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.
First Quarter 2016 Financial Results
Revenue for the first quarter of 2016 was $17.1 million, representing 24% growth over the first quarter 2015 revenue of $13.8 million. On a constant currency basis, revenue growth was 23% versus the prior year period.
2016 first quarter product revenue was $8.1 million representing a 14% increase from product revenue of $7.1 million in the first quarter of 2015. The increase in product revenue was primarily attributable to growth in Asia. Service revenue for the first quarter of 2016 was $9.0 million, up 34% from the 2015 first quarter revenue of $6.7 million. The increase in service revenue was primarily driven by growth in the United States.
United States revenue was $8.7 million in the first quarter of 2016 representing 37% growth over the same period’s revenue of $6.4 million in the prior year. Growth was driven primarily by volume increases in the institutional and patient testing segments.
Europe & ROW revenue was $1.6 million in the first quarter of 2016 representing an 8% decrease compared to first quarter of 2015. On a constant currency basis, Europe & ROW decreased 3% versus the first quarter of 2015.
Asia revenue was $6.8 million in the first quarter of 2016 representing 19% growth over 2015 first quarter revenue of $5.7 million. On a constant currency basis, Asia grew 15% versus the first quarter of 2015. The increase was driven by continued strong growth in Japan. China growth was more muted due to the timing of orders in 2015.
Gross profit for the first quarter of 2016 was $8.9 million, an increase of $1.8 million over gross profit of $7.1 million in the same period of 2015. Gross margin was 52.3%, an increase of 50 basis points from the gross margin of 51.8% in the first quarter of 2015. The increase in gross margin was primarily due to mix and lower kit costs associated with increased volume, offset by the costs associated with ongoing process refinement in our Memphis laboratory as well as the ongoing investment into broadening our service capabilities.
Operating expenses were $16.1 million in the first quarter of 2016, an increase of $2.4 million compared to $13.7 million in the same period last year. The increase in operating expenses was primarily due to headcount increases related to both sales and marketing and general and administrative functions, as well as increased costs from clinical studies performed during the quarter.
EBITDA for the fourth quarter was $(6.4) million compared to $(5.8) million in the first quarter of 2015. Adjusted EBITDA was $(5.8) million for the first quarter compared to $(5.0) million in the same period in 2015. Both EBITDA and Adjusted EBITDA are non-GAAP measures. Net loss for the first quarter of 2016 was $7.0 million, or $0.32 per share, compared to $6.3 million, or $0.31 per share, in the first quarter of 2015. Net loss per share was based on 22,284,392 and 20,331,411 weighted average ordinary shares outstanding for the first quarters of 2016 and 2015, respectively.
Cash and cash equivalents were $68.7 million as of March 31, 2016 compared to $83.7 million as of December 31, 2015. Cash usage during the quarter was in line with expectations. The first quarter typically has the highest cash usage as a result of the pre-payment of royalties and payment of year-end bonuses.
We expect to report full year 2016 revenue of between $74 and $77 million, representing 18%-23% year over year growth. We expect to report revenue of between $17.4 and $18.2 million for the second quarter of 2016.
|Company||Oxford Immunotec Global PLC|