NEW YORK – OraSure Technologies said after the close of the market on Tuesday that it is restructuring its Molecular Solutions and Diagnostics businesses into one unit, a move that will reduce expenses by about $15 million annually.
The developer of point-of-care and at-home diagnostics also said that during the fourth quarter revenues rose 94 percent year over year.
OraSure's restructuring will eliminate certain roles in the company, affecting 11 percent of its non-production workforce. Coupled with other cost-saving measures, the move is expected to result in $15 million in savings each year when it is implemented by the end of the second quarter.
The company is targeting cash flow breakeven for its base business by the end of 2024 when additional system changes and manufacturing site consolidation are factored in, it said.
"The changes we made will streamline levels of leadership, centralize core enterprise functions, and prioritize value creation activities," OraSure President and CEO Carrie Eglinton Manner said in a statement. "We believe our new operating structure will unlock significant operating efficiencies, foster stronger collaboration across the organization, and allow us to increase our innovation pipeline for growth."
For the three months ended Dec. 31, Bethlehem, Pennsylvania-based OraSure posted $123.1 million in revenues, up from $63.6 million a year ago and above the consensus Wall Street estimate of $97.1 million.
Core diagnostics revenues rose to $18.4 million from $17.9 million in Q4 2021, while InteliSwab revenues shot up to $88.9 million from $14.8 million. Core molecular solutions revenues dipped to $15.7 million from $22.9 million a year ago, while COVID-19 kit revenues plummeted to $137,000 from $8.0 million.
OraSure had a profit of $15.6 million, or $.21 per share, for the recently completed quarter compared to a net loss of $10.4 million, or $.14 per share, a year ago. Non-GAAP EPS for Q4 2022 was $.36 and beat the consensus Wall Street estimate of a loss of $.01 per share.
For full-year 2022, the company recorded revenues of $387.5 million, up 66 percent from $233.7 million in 2021, and beat the analysts' average estimate of $361.7 million.
Core diagnostics revenues grew to $70.0 million in 2022 from $67.3 million in 2021, while InteliSwab revenues spiked to $233.7 million from $22.7 million. Core molecular solutions revenues were down to $74.1 million from $89.5 million a year ago, and COVID-19 kit revenues slid to $9.7 million from $54.2 million.
OraSure had a net loss of $17.9 million, or $.25 per share, in 2022 compared to a net loss of $23.0 million, or $.32 per share, in 2021. Non-GAAP EPS for 2022 was $.34 and beat the consensus Wall Street estimate of loss of $.48 per share.
The company ended 2022 with $84.0 million in cash and cash equivalents and $28.9 million in short-term investments.
OraSure issued Q1 2023 guidance of between $125 million and $130 million in revenues. It did not issue guidance for the full year 2023.