OraSure reports $2.2 million loss for first quarter

BETHLEHEM, Pa., May 5, 2010 (GlobeNewswire via COMTEX) –OraSure Technologies, Inc. (Nasdaq:OSUR), a market leader in oral fluid diagnostics, today announced revenues of $17.9 million for the three months ended March 31, 2010, compared to $17.3 million recorded for the three months ended March 31, 2009. Increased sales of cryosurgical systems products and higher licensing and product development revenues were partially offset by lower revenues from the Company’s infectious disease testing and insurance risk assessment businesses. Revenues in the current quarter include a $1.0 million milestone payment that was received under the terms of a collaboration agreement for the development and promotion of the Company’s OraQuick(R) rapid HCV test.rnrnThe Company recorded a net loss of $2.2 million, or $0.05 per share for the first quarter of 2010 compared to a net loss of $1.6 million, or $0.04 per share, for the first quarter of 2009.rnrn”Our first quarter was one of accomplishment and challenge,” said Douglas A. Michels, President and CEO of OraSure Technologies. “While we did not meet our top-line revenue expectations, we exceeded bottom line guidance for the quarter. Current economic conditions led to reductions in public health funding that impacted customer orders of our infectious disease products. Nevertheless, we continued to make progress on our HCV and HIV-OTC clinical programs, which are critical to the future growth of our business.”rnrnGross margin in the first quarter of 2010 remained flat at 64% compared to the first quarter of 2009. Gross margin for the current period benefited from a $1.0 million milestone payment related to the Company’s OraQuick(R) rapid HCV test.rnrnOperating expenses for the first quarter of 2010 increased to $13.6 million, from $12.8 million in the comparable period in 2009. This increase was primarily attributable to an increase in sales and marketing and general and administrative costs, partially offset by lower research and development expenses.rnrnCash, cash equivalents and short-term investments totaled $73.4 million and working capital was $86.6 million at March 31, 2010, compared to $79.7 million and $89.4 million, respectively, at December 31, 2009. Cash flow used in operating activities for the three months ended March 31, 2010 was $5.0 million, compared to the $2.7 million used in operating activities for the three months ended March 31, 2009. The increase in the use of cash flow was largely the result of the Company’s net loss for the quarter and payment of certain 2009 accruals, partially offset by a decrease in accounts receivable.rn