OraSure Technologies, Inc. (NASDAQ:OSUR) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 05:00 pm ET

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OraSure Technologies, Inc. (NASDAQ:OSUR) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon everyone and welcome to the OraSure Technologies 2018 Third Quarter Financial Results Conference Call and Simultaneous Webcast. As a reminder, today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. (Operator Instructions)

OraSure Technologies issued a press release at approximately 4:00 P.M. Eastern Time today regarding its 2018 third quarter financial results and certain other matters. The press release is available on our website at www.orasure.com, or by calling 610-882-1820. If you go to our website, the press release can be found by opening the Investor Relations page and clicking on the link for Press Releases.

With us today are Dr. Stephen Tang, President and CEO; and Mr. Roberto Cuca, CFO. Dr. Tang and Mr. Cuca will begin with opening statements, which will be followed with a question-and-answer session.

[Forward-Looking Cautionary Statements]

With that, I would like to turn the call over to Dr. Stephen Tang.

Executive
Stephen Tang

Thank you, Jane. Good afternoon everyone and welcome to our call. I'm pleased to report that our third quarter results were strong, driven by continued growth from our molecular collections in HIV Self-Test businesses. Net revenues for the quarter increased 8% from a year ago period and rose 14% during the first nine months of this year, and that was on top of a very strong 2017 performance.

Some specific highlights include the following: net molecular revenues increased 37% for the third quarter and 35% for the nine-month period. International HIV sales grew 41% and 125% for the quarter and nine months ended September 30, 2018, respectively. This growth was primarily the result of higher sales of our HIV Self-Test. We reported quarterly net income of $8.1 million, and we ended the third quarter with over $192 million in cash and cash equivalents on our balance sheet with no debt.

I would also point out that not only was Q3 a success from a financial performance standpoint, but we also advanced on the goals we adopted from our strategic review. That type of important progress cannot always be detailed in real time due to competitive and other reasons, but I can say that we are actively working to implement our new strategy and expect that these efforts will further enhance our growth potential.

Starting with today's call, we are taking a somewhat different approach with our prepared remarks in part, based on your feedback. Our prepared comments will focus more on the drivers of our current and future growth, and we'll spend time discussing key factors that will impact the business going forward. We have also received feedback concerning the length of our prepared remarks, and believe these changes will help streamline the process. As always, we will gladly take your questions on any aspect of the business. For more detailed information about our quarterly performance, I would refer you to our earnings release and the 10-Q when it's filed in the next day or so.