UK markets closed
  • FTSE 100

    6,367.58
    +4.65 (+0.07%)
     
  • FTSE 250

    19,462.71
    +66.37 (+0.34%)
     
  • AIM

    1,039.01
    +0.98 (+0.09%)
     
  • GBP/EUR

    1.1125
    -0.0086 (-0.77%)
     
  • GBP/USD

    1.3314
    -0.0042 (-0.32%)
     
  • BTC-GBP

    13,671.79
    +318.88 (+2.39%)
     
  • CMC Crypto 200

    333.27
    -4.23 (-1.25%)
     
  • S&P 500

    3,638.35
    +8.70 (+0.24%)
     
  • DOW

    29,910.37
    +37.90 (+0.13%)
     
  • CRUDE OIL

    45.53
    -0.18 (-0.39%)
     
  • GOLD FUTURES

    1,788.10
    -23.10 (-1.28%)
     
  • NIKKEI 225

    26,644.71
    +107.40 (+0.40%)
     
  • HANG SENG

    26,894.68
    +75.23 (+0.28%)
     
  • DAX

    13,335.68
    +49.11 (+0.37%)
     
  • CAC 40

    5,598.18
    +31.39 (+0.56%)
     

Oxford Immunotec Reports Third Quarter 2020 Financial Results

Oxford Immunotec Global PLC
·12-min read
  • Third quarter revenue of $19.4 million, above guidance of range of $18 - $19 million

    • Asia-Pacific region returns to growth and sets a new quarterly sales record for the region

    • Europe & rest of world and U.S. regions recover strongly from low point in the second quarter

  • Gross Margin of 76.4% representing a 340 basis point increase from the third quarter of 2019

  • Delivered Adjusted EBITDA of $1.7 million

OXFORD, United Kingdom and MARLBOROUGH, Mass., Nov. 03, 2020 (GLOBE NEWSWIRE) -- Oxford Immunotec Global PLC (Nasdaq: OXFD) (the “Company”), a global diagnostics company, today announced third quarter 2020 financial results.

“Our TB revenues rebounded significantly across all geographies in the third quarter and we expect the business to return to year-over-year growth in the fourth quarter,” said Dr. Peter Wrighton-Smith, Chief Executive Officer. He continued “Additionally, we have increased confidence in the role our T-SPOT® T cell detection technology can play in SARS-CoV-2; and are now advancing IVD test development towards a submission to the US and European regulatory authorities.”

Revenues, broken out by geographic location, were as follows, in millions:

Three Months Ended September 30, 2020

Percent Change

2020

2019

As Reported

Constant Currency (1)

United States

$

4.4

$

5.7

(23

)%

(23

)%

Europe & ROW

1.7

2.7

(37

)%

(40

)%

Asia

13.3

12.8

4

%

3

%

Total Revenue

$

19.4

$

21.2

(8

)%

(9

)%

(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.

Third Quarter 2020 Financial Results

Revenue for the third quarter of 2020 was $19.4 million, representing an 8% decrease from third quarter 2019 revenue of $21.2 million. On a constant currency basis, revenue decreased 9% versus the prior year period.

United States revenue was $4.4 million in the third quarter of 2020, representing a 23% decrease from revenue of $5.7 million in the prior year period. The decrease was driven by the impact of COVID-19 on testing volumes, although volumes continue to recover. Testing volumes increased sequentially from August to September and overall revenue in the third quarter increased $3.2 million from the second quarter.

Europe & rest of world, or Europe & ROW, revenue was $1.7 million in the third quarter of 2020, representing a 37% decrease compared to the third quarter of 2019. On a constant currency basis, Europe & ROW decreased 40% versus the third quarter of 2019. The decrease was driven by the impact of COVID-19 on testing volumes, although revenues improved sequentially from the second quarter by nearly $700,000.

Asia revenue was $13.3 million in the third quarter of 2020, representing an increase of 4% compared to 2019 third quarter revenue of $12.8 million, and a new record for revenues for this region. On a constant currency basis, Asia revenue increased 3% versus the third quarter of 2019. The increase was driven by both a recovery in volume, closer to the pre-COVID-19 levels across the region, and better price performance. Sequentially, revenue increased by $9.7 million versus the second quarter.

Gross profit for the third quarter of 2020 was $14.9 million, a decrease of $630,000 from gross profit of $15.5 million in the same period of 2019. Gross margin was 76.4%, an increase of 340 basis points from gross margin of 73.0% in the third quarter of 2019.

Operating expenses were $14.6 million in the third quarter of 2020, a decrease of $783,000 compared to $15.4 million in the third quarter of 2019.

Net loss for the third quarter of 2020 was $149,000, or $0.01 per share on both a basic and diluted basis, compared to net income of $717,000, or $0.03 per share on both a basic and diluted basis, in the third quarter of 2019.

EBITDA for the third quarter of 2020 was $507,000 compared to $956,000 in the third quarter of 2019. Adjusted EBITDA was $1.7 million for the third quarter of 2020 compared to $1.9 million in the same period in 2019. Both EBITDA and Adjusted EBITDA are non-GAAP measures.

Business Outlook

We expect fourth quarter revenues to be between $19.0 to $20.0 million, assuming that testing volumes continue to recover from the impact of COVID-19 during the remainder of 2020.

Conference Call

Oxford Immunotec will host a conference call on Tuesday, November 3, 2020 at 8:00 a.m. Eastern Daylight Time to discuss its third 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 1346474 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. We are uniquely placed as the only company in the world offering regulated ELISPOT assays for T cell measurement, with approval around the globe. Our leading product, the T-SPOT.TB test, is used for diagnosing infection with Tuberculosis, or TB, the world’s largest cause of death from infectious disease. The Company is an experienced manufacturer of IVD tests, operating under a fully audited Quality Management System, ensuring rigorous batch control. The Company has manufactured in excess of 20 million clinical T cell tests for TB 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 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 Limited.

Forward-Looking Statements

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 Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 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.

CONTACTS:

For Media and Investor Inquiries:
Matt McLaughlin
Chief Financial Officer
Oxford Immunotec
Tel: +1 (508) 573-9953
mtmclaughlin@oxfordimmunotec.com


Oxford Immunotec Global PLC
Condensed consolidated statements of operations
(unaudited)

Three months ended
September 30,

Nine months ended
September 30,

(in thousands, except share and per share data)

2020

2019

2020

2019

Revenue

$

19,436

$

21,219

$

39,182

$

55,596

Cost of revenue

4,578

5,731

10,352

15,359

Gross profit

14,858

15,488

28,830

40,237

Operating expenses:

Research and development

2,612

1,631

7,731

6,044

Sales and marketing

6,570

7,405

19,258

21,169

General and administrative

5,401

5,531

17,983

16,230

Settlement expense

799

1,002

Total operating expenses

14,583

15,366

44,972

44,445

Operating income (loss) from continuing operations

275

122

(16,142

)

(4,208

)

Other income (expense):

Interest income

65

1,064

770

3,426

Foreign exchange gains (losses)

(300

)

360

539

(233

)

Other income

18

23

50

65

Income (loss) from continuing operations before income taxes

58

1,569

(14,783

)

(950

)

Income tax benefit (expense) from continuing operations

(157

)

(383

)

(230

)

1,230

Income (loss) from continuing operations

(99

)

1,186

(15,013

)

280

Discontinued operations:

Income (loss) from discontinued operations before income taxes

(469

)

147

(469

)

Income tax expense from discontinued operations

(50

)

(995

)

Loss from discontinued operations

(50

)

(469

)

(848

)

(469

)

Net income (loss)

$

(149

)

$

717

$

(15,861

)

$

(189

)

Net income (loss) per ordinary share—basic:

Income (loss) from continuing operations

$

$

0.04

$

(0.58

)

$

0.01

Loss from discontinued operations

(0.02

)

(0.03

)

(0.02

)

Net income (loss)

$

(0.01

)

$

0.03

$

(0.61

)

$

(0.01

)

Net income (loss) per ordinary share—diluted:

Income (loss) from continuing operations

$

$

0.04

$

(0.58

)

$

0.01

Loss from discontinued operations

(0.02

)

(0.03

)

(0.02

)

Net income (loss)

$

(0.01

)

$

0.03

$

(0.61

)

$

(0.01

)

Weighted-average shares used to compute net income (loss) per ordinary share—basic

25,898,067

26,751,083

25,975,250

26,631,704

Weighted-average shares used to compute net income (loss) per ordinary share—diluted

25,898,067

26,936,541

25,975,250

26,904,481

Reconciliation of net income (loss) to Adjusted EBITDA (1)
(unaudited)

The below table presents a reconciliation of net income (loss), the most comparable U.S. GAAP measure, to EBITDA and Adjusted EBITDA for each of the periods indicated.

Three months ended
September 30,

Nine months ended
September 30,

(in thousands)

2020

2019

2020

2019

Net income (loss)

$

(149

)

$

717

$

(15,861

)

$

(189

)

Loss from discontinued operations

(50

)

(469

)

(848

)

(469

)

Income (loss) from continuing operations

(99

)

1,186

(15,013

)

280

Income tax (benefit) expense

157

383

230

(1,230

)

Interest income, net

(65

)

(1,064

)

(770

)

(3,426

)

Depreciation and amortization expense

514

451

1,440

1,351

EBITDA

507

956

(14,113

)

(3,025

)

Reconciling items:

Share-based compensation expense

1,100

983

2,667

2,674

Unrealized exchange (gains) losses

140

(806

)

(917

)

(1,037

)

Settlement expense

799

1,002

Adjusted EBITDA

$

1,747

$

1,932

$

(12,363

)

$

(386

)

(1) EBITDA and Adjusted EBITDA are non-GAAP measures that we calculate as net income (loss), adjusted for the impact of earnings or charges resulting from matters that we consider not to be indicative of our ongoing operations. We believe that these measures provide useful information to investors in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Our presentation of these measures is not made in accordance with U.S. GAAP, and our computation of these measures may vary from others in the industry. Our use of these measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP.

Oxford Immunotec Global PLC
Condensed consolidated balance sheets
(unaudited)

September 30,

December 31,

(in thousands, except share and per share data)

2020

2019

Assets

Current assets:

Cash and cash equivalents

$

160,621

$

181,270

Accounts receivable, net

10,866

13,669

Other receivables

184

4,660

Inventory, net

13,099

11,096

Prepaid expenses and other assets

3,602

5,186

Total current assets

188,372

215,881

Restricted cash

100

100

Property and equipment, net

10,176

7,095

Lease right-of-use assets

7,317

7,443

Goodwill

2,483

2,483

Other intangible assets, net

70

87

Deferred tax asset

1,923

2,163

Other assets

59

Total assets

$

210,500

$

235,252

Liabilities and shareholders’ equity

Current liabilities:

Accounts payable

$

2,371

$

2,420

Accrued liabilities

7,916

10,396

Current portion of lease liability

1,487

984

Deferred income

27

19

Total current liabilities

11,801

13,819

Long-term portion of lease liability

7,190

7,710

Other liabilities

250

32

Total liabilities

19,241

21,561

Shareholders’ equity:

Ordinary shares, £0.006705 nominal value; 39,068,071 and 39,824,703 shares authorized at September 30, 2020 and December 31, 2019, respectively, and 25,961,817 and 26,419,961 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively

272

276

Additional paid-in capital

301,347

304,909

Accumulated deficit

(101,484

)

(84,033

)

Accumulated other comprehensive loss

(8,876

)

(7,461

)

Total shareholders’ equity

191,259

213,691

Total liabilities and shareholders’ equity

$

210,500

$

235,252