Second Quarter 2009 Outlook
Looking ahead for second quarter 2009, the company anticipates total revenues for the second quarter of 2009 to range from about $18.5 to $19.0 million. The company is presently projecting a loss per share for the second quarter of 2009 of about $0.06 to $0.07.
On a non-GAAP basis, the company would have reported a $2.1 million pre-tax loss in 2008 excluding the gain, against pre-tax loss for the first quarter of 2009 of $1.6 million, an improvement of about $532,000 which is largely attributable to a higher gross margin and an overall decrease in operating expenses.
During the fourth quarter of 2008, the company established a full valuation allowance against its net deferred tax asset. As a result, the company will not record Federal income tax expense or benefit in 2009. The company incurred income tax expense of $732,000 for the three months ended March 31, 2008.
Gross margin in the first quarter of 2009 was 64% compared to 59% in the first quarter of 2008, due to improved margins derived from implementing a direct sales model for the OraQuick ADVANCE® HIV-1/2 test in the U.S. hospital market beginning in January 2009 and a decrease in scrap and spoilage levels.
Operating expenses for the first quarter of 2009 decreased $823,000 to $12.8 million, from $13.7 million in the comparable period in 2008.
“We are pleased with our performance during the first quarter of 2009, as we exceeded expectations on both the top and bottom lines,” said Douglas A. Michels, President and Chief Executive Officer of OraSure Technologies. “Sales of our OraQuick ADVANCE® HIV-1/2 test remained strong, in part because of the successful transition of the hospital market to a direct sales model. At the same time, we continued advancing our two most critical clinical programs for an OraQuick® HCV test and OraQuick® HIV OTC test. Our first quarter performance is a great start to what we expect will be a very successful 2009.”
Cash, cash equivalents and short-term investments totaled $78.6 million and working capital was $90.1 million at March 31, 2009, against $82.5 million and $90.9 million, respectively, at December 31, 2008.