GlobeNewswire Inc | Aug 4, 2020 07:00AM EDT

August 04, 2020

-- Second quarter revenue of $5.8 million, a decrease of 70% compared to prior year period, due to the impact of COVID-19 -- Ended the quarter with approximately $165 million of cash and cash equivalents -- Third quarter revenue estimated to be between $18 - $19 million

OXFORD, United Kingdom and MARLBOROUGH, Mass., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Oxford Immunotec Global PLC (Nasdaq: OXFD) (the Company), a global diagnostics company, today announced second quarter 2020 financial results.

We knew revenue would be significantly impacted in the quarter, however, we were able to keep advancing our strategic priorities and ensuring the business is set to return to growth mode coming out of the pandemic, said Dr.Peter Wrighton-Smith, Chief Executive Officer ofOxford Immunotec. Testing volumes are recovering in all regions and, absent a significant global re-emergence of COVID-19, we are confident in a strong recovery in the business.

Revenues, broken out by geographic location, were as follows, in millions:

Three Months Ended June 30, Percent Change 2020 2019 As Reported Constant Currency ^(1) United States $ 1.2 $ 7.8 (85 )% (85 )% Europe & ROW 1.0 2.2 (54 )% (53 )% Asia 3.6 9.6 (62 )% (63 )% Total Revenue $ 5.8 $ 19.6 (70 )% (70 )%

(1) Constant currency basis is a non-GAAP financial measure. Changes in revenue include the impact of changes in foreign currency exchange rates. We use the non-GAAP financial measure "constant currency basis" in our filings to show changes in our revenue without giving effect to period-to-period currency fluctuations. We consider the use of a period over period revenue comparison on a constant currency basis to be helpful to investors, as it provides a revenue growth measure free of positive or negative volatility due to currency fluctuations. This non-GAAP financial measure may be different from non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Moreover, presentation of revenue on a constant currency basis is provided for year-over-year comparison purposes, and investors should be cautioned that the effect of changing foreign currency exchange rates has an actual effect on our operating results.

Second Quarter 2020 Financial Results

Revenue for the second quarter of 2020 was$5.8 million, representing a 70% decrease from second quarter 2019 revenue of$19.6 million. On a constant currency basis, revenue decreased 70% versus the prior year period.

United Statesrevenue was$1.2 millionin the second quarter of 2020, representing an 85% decrease from revenue of$7.8 millionin the prior year period. The decrease was driven by the impact of COVID-19 on testing volumes and the impact of planned inventory destocking by Quest.

Europe & rest of world, or Europe& ROW, revenue was$1.0 millionin the second quarter of 2020, representing a 54% decrease compared to the second quarter of 2019. On a constant currency basis, Europe & ROW decreased 53% versus the second quarter of 2019. The decrease was driven by the impact of COVID-19 on testing volumes.

Asiarevenue was$3.6 millionin the second quarter of 2020, representing a decrease of 62% compared to 2019 second quarter revenue of$9.6 million. On a constant currency basis,Asiarevenue decreased 63% versus the second quarter of 2019. The decrease was due primarily to a slowdown in testing as a result of the COVID-19 pandemic.

Gross profit for the second quarter of 2020 was$3.7 million, a decrease of approximately $10.5 millionfrom gross profit of$14.2 millionin the same period of 2019. Gross margin was 62.8%, a decrease of 960 basis points from gross margin of 72.4% in the second quarter of 2019. The second quarter 2020 gross margin decrease was a result of the significant global volume reduction as a result of the COVID-19 pandemic and a provision for slow moving inventory.

Operating expenses were$13.5 millionin the second quarter of 2020, a decrease ofapproximately $1.7 million compared to$15.2 millionin the second quarter of 2019.

Net loss for the second quarter of 2020 was$9.7 million, or$0.37per share on a basic and diluted basis, compared tonet income of $0.6 million, or$0.02per share on a basic and diluted basis, in the second quarter of 2019.

EBITDA for the second quarter of 2020 was$(9.5) millioncompared to$(0.2) millionin the second quarter of 2019.Adjusted EBITDA was$(8.9) millionfor the second quarter of 2020 compared to$(48,000) in the same period in 2019. Both EBITDA and Adjusted EBITDA are non-GAAP measures.

Business Outlook

Given the uncertainty of the scope and duration of the COVID-19 pandemic, as well as its impact on our revenues and results from operations, we are not providing annual revenue guidance at this time.

We expect third quarter revenues to be between $18.0 to $19.0 million as testing volumes continue to recover from the impact of COVID-19 during the second half of 2020.

Conference Call

Oxford Immunotecwill host a conference call onTuesday, August 4, 2020at8:00 a.m. Eastern Daylight Timeto discuss its second quarter 2020 financial results and to give a general business update. The call will be concurrently webcast. To listen to the conference call on your telephone, please dial (855) 363-5047 for United Statescallers and +1 (484) 365-2897 for international callers and reference confirmation code 4337217 approximately 15 minutes prior to start time. To access the live audio webcast or subsequent archived recording, visit the Investor Relations section ofOxford Immunotec'swebsite at www.oxfordimmunotec.com. The replay will be available on the Company's website for approximately 60 days.

AboutOxford Immunotec

Oxford Immunotec Global PLC is a global, high-growth diagnostics company. We bring energy and invention to a world in need of diagnostic truth. Our leading product, the T-SPOT.TB test, is used for diagnosing infection with Tuberculosis, the worlds largest cause of death from infectious disease. The T-SPOT.TB test has been approved for sale in over 50 countries, including the United States, where it has received pre-market approval from the Food and Drug Administration, Europe, where it has obtained a CE mark, as well as Japan and China. The Company is headquartered near Oxford, U.K. and in Marlborough, MA. Additional information can be found at www.oxfordimmunotec.com.

T-SPOT and the Oxford Immunotec logo are trademarks of Oxford Immunotec Limited.

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements within the meaning of applicable U.S. and U.K. laws and regulations, including under the U.S. Private Securities Litigation Reform Act of 1995. Any statements contained herein which do not describe historical or current facts, including statements about Oxford Immunotecs plans to ensure that when the COVID-19 disruption eases, Oxford Immunotec is best positioned to meet the needs of the TB market and drive long-term growth and statements regarding uncertainties around the impact of COVID-19 on Oxford Immunotecs revenues and results of operations, constitute forward-looking statements. Any forward-looking statements are based on our managements current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, risks that the COVID-19 pandemic may disrupt the companys business and the global healthcare system more severely than anticipated, as well as those other risks described in Oxford Immunotecs filings with the U.S. Securities and Exchange Commission (the Commission), including the companys Annual Report on Form 10-K for the year-ended December 31, 2019 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, and in any other reports it subsequently files with the Commission, including any other Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Oxford Immunotecs filings with the Commission are available for free by visiting the investor section of our website, www.oxfordimmunotec.com, or the Commissions website, www.sec.gov.

Investors should give careful consideration to these risks and uncertainties. Forward-looking statements contained herein are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. Investors should not place undue reliance on forward-looking statements contained herein, which speak only as of the date of this release. Oxford Immunotec does not undertake to update or revise any forward-looking statements after they are made, whether as a result of new information, future events, or otherwise, except as required by applicable law.

CONTACTS:

For Media and Investor Inquiries: Matt McLaughlinChief Financial OfficerOxford ImmunotecTel: +1 (508) 573-9953mtmclaughlin@oxfordimmunotec.com

Oxford Immunotec Global PLCCondensed consolidated statements of operations(unaudited)

Three months ended Six months ended June 30, June 30,(in thousands,except share and 2020 2019 2020 2019 per share data)Revenue $ 5,835 $ 19,588 $ 19,746 $ 34,377 Cost of revenue 2,170 5,400 5,774 9,628 Gross profit 3,665 14,188 13,972 24,749 Operating expenses:Research and 2,462 2,089 5,119 4,413 developmentSales and 5,479 7,485 12,688 13,764 marketingGeneral and 5,558 5,491 12,582 10,699 administrativeSettlement ? 104 ? 203 expenseTotal operating 13,499 15,169 30,389 29,079 expensesOperating lossfrom continuing (9,834 ) (981 ) (16,417 ) (4,330 )operationsOther income (expense):Interest income 86 1,162 705 2,362 Foreign exchange (124 ) 291 839 (593 )gains (losses) Other income 32 42 32 42 Income (loss)from continuing ) )operations (9,840 514 (14,841 (2,519 )before incometaxesIncome taxbenefit )(expense) from 136 76 (73 1,613 continuingoperationsIncome (loss) ) )from continuing (9,704 590 (14,914 (906 )operationsDiscontinued operations:Income fromdiscontinuedoperations ? ? 147 ? before incometaxesIncome taxbenefit )(expense) from 19 ? (945 ? discontinuedoperationsIncome (loss)from 19 ? (798 ) ? discontinued operationsNet income $ (9,685 ) $ 590 $ (15,712 ) $ (906 )(loss) Net income(loss) per ordinaryshare?basic:Income (loss) ) )from continuing $ (0.37 $ 0.02 $ (0.57 $ (0.03 )operationsIncome (loss)from ? ? (0.03 ) ? discontinued operationsNet income $ (0.37 ) $ 0.02 $ (0.60 ) $ (0.03 )(loss) Net income(loss) per ordinaryshare?diluted:Income (loss) ) )from continuing $ (0.37 $ 0.02 $ (0.57 $ (0.03 )operationsIncome (loss)from ? ? (0.03 ) ? discontinued operationsNet income $ (0.37 ) $ 0.02 $ (0.60 ) $ (0.03 )(loss) Weighted-averageshares used tocompute net 25,888,006 26,625,572 26,014,265 26,571,025 income (loss)per ordinaryshare?basicWeighted-averageshares used tocompute net 25,888,006 26,889,232 26,014,265 26,571,025 income (loss)per ordinaryshare?diluted

Reconciliation of net income (loss) to Adjusted EBITDA (1)

(unaudited)

The below table presents a reconciliation of net income (loss), the most comparable U.S. GAAP measure, to EBITDA and Adjusted EBITDA for each of the periods indicated.

Three months ended Six months ended June 30, June 30,(in thousands) 2020 2019 2020 2019 Net income (loss) $ (9,685 ) $ 590 $ (15,712 ) $ (906 ) Income (loss) from 19 ? (798 ) ? discontinued operations Loss from continuing (9,704 ) 590 (14,914 ) (906 )operations Income tax (benefit) (136 ) (76 ) 73 (1,613 )expenseInterest income, net (86 ) (1,162 ) (705 ) (2,362 )Depreciation and 460 430 926 900 amortization expenseEBITDA (9,466 ) (218 ) (14,620 ) (3,981 ) Reconciling items: Share-based compensation 610 846 1,567 1,691 expenseUnrealized exchange gains (70 ) (780 ) (1,057 ) (231 )Settlement expense ? 104 ? 203 Adjusted EBITDA $ (8,926 ) $ (48 ) $ (14,110 ) $ (2,318 )

(1) EBITDA and Adjusted EBITDA are non-GAAP measures that we calculate as net income (loss), adjusted for the impact of earnings or charges resulting from matters that we consider not to be indicative of our ongoing operations. We believe that these measures provide useful information to investors in understanding and evaluating our operating results in the same manner as our management and Board of Directors. Our presentation of these measures is not made in accordance with U.S. GAAP, and our computation of these measures may vary from others in the industry. Our use of these measures has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP.

Oxford Immunotec Global PLCCondensed consolidated balance sheets(unaudited)

June 30, December 31,(in thousands, except share and per share data) 2020 2019 Assets Current assets: Cash and cash equivalents $ 165,489 $ 181,270 Accounts receivable, net 4,677 13,669 Other receivables 184 4,660 Inventory, net 12,824 11,096 Prepaid expenses and other assets 3,775 5,186 Total current assets 186,949 215,881 Restricted cash 100 100 Property and equipment, net 8,561 7,095 Lease right-of-use assets 6,638 7,443 Goodwill 2,483 2,483 Other intangible assets, net 72 87 Deferred tax asset 1,744 2,163 Other assets 59 ? Total assets $ 206,606 $ 235,252 Liabilities and shareholders? equity Current liabilities: Accounts payable $ 1,658 $ 2,420 Accrued liabilities 8,089 10,396 Current portion of lease liability 1,031 984 Deferred income 34 19 Total current liabilities 10,812 13,819 Long-term portion of lease liability 6,869 7,710 Other liabilities 32 32 Total liabilities 17,713 21,561 Shareholders? equity: Ordinary shares, 0.006705 nominal value;39,068,071 and 39,824,703 shares authorized atJune 30, 2020 and December 31, 2019, respectively, 272 276 and 25,955,508 and 26,419,961 shares issued andoutstanding at June 30, 2020 and December 31,2019, respectivelyAdditional paid-in capital 300,231 304,909 Accumulated deficit (101,335 ) (84,033 )Accumulated other comprehensive loss (10,275 ) (7,461 )Total shareholders? equity 188,893 213,691 Total liabilities and shareholders? equity $ 206,606 $ 235,252