Skip to main content
Premium Trial:

Request an Annual Quote

OraSure Posts 15 Percent Q1 Decline in Core Business

NEW YORK – OraSure Technologies reported after the close of the market Wednesday that its core business revenues declined 15 percent year over year with sales for its diagnostics business and molecular sample management solutions both falling year over year.

The Bethlehem, Pennsylvania-based diagnostics and molecular tools firm brought in total revenues of $54.1 million for the quarter ended March 31 versus revenues of $155.0 million in Q1 2023, a 65 percent decline driven by an expected sharp drop in COVID-19 test sales. The revenue figure for the first quarter of 2024 beat analysts' consensus estimate of $52.1 million.

The firm's COVID-19 sales fell to $23.1 million from $118.4 million year over year, an 80 percent decline.

Revenues from its core business were $31.0 million compared to $36.6 million for Q1 2023. Sales for its diagnostics business dropped 4 percent to $16.4 million, revenue for its molecular sample management solutions fell 16 percent year over year to $10.8 million, and revenue for its molecular services business were down 37 percent to $873,000.

"Our Q1 results were consistent with our expectations, and our transformation continues with three recent important initiatives to further streamline the business and focus on our strengths," OraSure President and CEO Carrie Eglinton Manner said in a statement. "We are winding down our microbiome laboratory and analytical sequencing services business, insourcing third-party manufacturing activities into our Bethlehem facilities, and closing our site in Belgium. These actions are expected to result in meaningful cost savings this year and contribute to achieving our target to breakeven in cash flow from operations for our core business by the end of 2024."

The microbiome laboratory and analytical sequencing services business, Diversigen, generated revenues of $4 million over the past 12 months, the firm said. It expects to exit that business by the end of Q3 2024, and it anticipates that action will result in more than $10 million of annualized cost savings.

OraSure posted a net loss of $3.6 million, or $.05 per share, for the first quarter compared to net income of $27.2 million, or $.37 per share, for Q1 2023. On an adjusted basis, OraSure had earnings per share of $.04, beating the average Wall Street estimate of $.01.

Its R&D spending fell to $7.7 million from $10.6 million, while its SG&A costs declined to $20.1 million from $29.9 million. OraSure also reported an impairment charge during the quarter of $3.3 million versus $1.1 million for Q1 2023.

OraSure finished the quarter with $247.1 million in cash and cash equivalents and $16.6 million in short-term investments.

The company said it expects second quarter 2024 revenue of $50 million to $55 million, including core revenue of $33 million to $36 million and InteliSwab revenue of $17 million to $19 million. The guidance includes approximately $650,000 of revenue from the Diversigen business.

In early Thursday trading on the Nasdaq, OraSure's shares were down around 3 percent at $5.17.