OraSure Technologies, Inc. (OSUR) Q2 2012 Earnings Call August 7, 2012 5:00 p.m. ET Executives Douglas Michels - President and Chief Executive Officer Ronald Spair - Chief Operating Officer and Chief Financial Officer Judy Clarke - Investor Relations Analysts Jeff Frelick - CanaccordGenuity Charles Duncan - JMP Securities Presentation Judy Clarke
Previous Statements by OSUR
» OraSure Technologies' CEO Presents at Deutsche Bank AG Health Care Conference (Transcript)
» OraSure Technologies, Inc. Q1 2010 Earnings Call Transcript
» OraSure Technologies Inc., Q2 2009 Earnings Call Transcript
» OraSure Technologies, Inc. Q1 2009 Earnings Call Transcript
Before I turn the call over to Dou, you should know that this call may contain certain forward-looking statements including statements with respect to revenues, expenses, profitability, earnings or loss per share and other financial performance, product development, performance, shipments and markets, and regulatory filings and approvals. Actual results could be significantly different. Factors that could affect results are discussed more fully in the company's SEC filings, including its registration statement, its annual report on Form 10-K for the year ended December 31, 2011, its quarterly reports on Form 10-Q and its other SEC filings.Although forward-looking statements help to provide complete information about future prospects, listeners should keep in mind that forward-looking statements may not be reliable. The company undertakes no obligation to update any forward-looking statements to reflect the events or circumstances after this call. With that, I would like to turn the call over to Doug Michels. Douglas Michels Thank you, Judy, and good afternoon everyone. Thank you all for joining us on our call this afternoon. I am pleased to report that results for the second quarter exceeded our guidance range on both the top and bottom lines. Consolidated revenues were up almost 20% compared to the second quarter of 2011, primarily as a result of DNA Genotek. As many of you know the most significant development in the second quarter was the receipt of FDA approval of our OraQuick In-Home HIV Test which was covered extensively in the media. I will provide an update on our commercialization efforts for this exciting new product as well as certain other developments in our business. But before I do that, let me turn the call over to Ron for an overview of our financial results. Ronald Spair Okay. Thanks, Doug, and good afternoon everyone. Our second quarter 2012 revenues were $22.6 million compared to $19.1 million reported in 2011. Revenues for the current quarter included $3.3 million from our molecular diagnostic collection subsidiary, DNA Genotek acquired in August 2011. Our product revenues increased 19% as a result of the molecular collection systems sales and higher sales of our cryosurgical systems products. These increases were partially offset by lower sales of our infectious disease, substance abuse and insurance risk assessment products.
Our infectious disease testing revenues were $10.4 million in the second quarter of 2012 compared to $11.3 million in the second quarter of 2011. The overall 8% decrease was primarily a result of lower domestic OraQuick HIV sales, partially offset by higher sales into the international market and by higher OraQuick HCV sales. Domestic HIV revenues were down $1.6 million year-over-year or 16% due to various factors including changes in public health testing programs, reductions in government funding, some lost business due to price competition and timing of certain orders.Our HCV revenues were $954,000 for the quarter, a $712, 000 increase over the second quarter of 2011. HCV revenues were also sequentially up from Q1 of 2012. In our substance abuse testing area, revenues decreased to $2.9 million in the second quarter of 2012 from $3.2 million in the second quarter of 2011, primarily as a result of lower intercept sales. This decrease was the result of a reduction in purchases by our largest domestic laboratory distributor who began selling its own competitive oral fluid drug testing system at the end of 2011, and lower international sales due to reduction in our UK distributors target inventory levels. Second quarter 2012 cryo revenues increased 61% compared to the second quarter of 2011, primarily as a result of higher over the counter sales. OTC cryo sales during the quarter increased $1.3 million or 160% when compared to 2011, largely as a result of higher sales to both our Latin American distributor Genomma, and our European distributor, Reckitt Benckiser. As discussed in previous calls, early in 2011 the Mexican government imposed restraints on the advertising Genomma could use for our product. At the same time the Brazilian government required us to make changes to our package insert. Both of these issues negatively impacted our sales to Genomma during 2011 but were resolved by the end of that year. Read the rest of this transcript for free on seekingalpha.com