NEW YORK – OraSure Technologies reported on Wednesday that its third quarter revenues declined 55 percent year over year related to the exit from its molecular services business and a decline in COVID-19-related revenues.
For the three months ended Sept. 30, total revenues dropped to $39.9 million from $89.2 million a year ago, beating analysts' average estimate of $39.0 million.
"Our Q3 results were consistent with our expectations, and we continue to make progress on our strategic transformation," OraSure President and CEO Carrie Eglinton Manner said in a statement, adding that key end markets are showing signs of gradual recovery and that the firm's focus on operational efficiency is delivering productivity gains.
Manner also said that OraSure will wind down its risk assessment testing business to focus on opportunities that align with its strengths in diagnostics and sample management and to elevate profitable growth in its core business.
OraSure's core revenues, which include diagnostics and molecular sample management solutions, declined 1 percent to $37.8 million from $38.2 million in Q3 2023.
The firm's COVID-19 diagnostics-related revenues dropped 96 percent to $2.2 million from $50.2 million primarily due to the completion of its largest government contract earlier this year.
Diagnostics revenues grew 13 percent to $22.0 million from $19.6 million in the year-ago quarter, while molecular sample management solutions fell 16 percent to $12.8 million from $15.2 million.
Molecular services revenues fell to $9,000 from $834,000 a year ago. OraSure announced in May that it is exiting its molecular services business.
Revenues from OraSure's risk assessment testing business, which includes testing for drugs of abuse, declined 25 percent to $1.9 million from $2.6 million.
The company reported no COVID-19 molecular product revenues compared to $54,000 in Q3 2023, while other products and service revenues increased 17 percent to $748,000 from $638,000.
"As we position OraSure for a return to growth, our strong balance sheet provides flexibility as we invest in our innovation roadmap, including internal development, partnerships, and potential acquisition opportunities that leverage our existing capabilities," Manner said.
OraSure had a net loss of $4.5 million, or $.06 per share, for Q3 2024 compared to net income of $11.2 million, or $.15 per share, in Q3 2023. Its non-GAAP loss per share was $.01 and beat the consensus Wall Street estimate for a loss of $.08 per share.
The firm lowered its R&D costs to $5.6 million from $8.5 million a year ago and reduced its SG&A spending to $9.8 million from $10.1 million a year ago.
OraSure had $278.6 million in cash and cash equivalents at the end of Q3 2024.
For Q4 2023, the company is guiding to total revenues of $36 million to $38 million, and core revenues of $35 million to $37 million, which include $1 million to $2 million of risk assessment testing revenues. The company anticipates COVID-19 revenues in Q4 2024 of approximately $1 million.
Shares of OraSure were down approximately 3 percent to $4.27 in Thursday morning trading on the Nasdaq.