Benzinga | Nov 4, 2021 07:39AM EDT

OraSure Q3 Sales, Without COVID Related Products, Jump 37%; Guides FY21 Sales Below Consensus

* OraSure Technologies Inc (NASDAQ:OSUR) reported Q3 revenues of $53.92 million, +12% Y/Y, beating the consensus of $47.48 million.

* Excluding COVID-19 product-related sales, revenues grew by 37%, demonstrating strong growth.

* Diagnostic business unit sales increased 44% to $23.5 million, driven predominantly by the addition of InteliSwab along with higher global HCV and risk assessment revenues.

* OraSure "laid the foundation to dramatically scale the company's size in the fiscal year 2022," said CEO Stephen Tang.

* Specifically, the firm signed three major contracts in Q3 with the US government: $205 million for InteliSwab COVID-19 Rapid Test procurement, $109 million for InteliSwab manufacturing capacity build-out, and $13.6 million to pursue full FDA 510(k) clearance for InteliSwab.

* OraSure had $6.3 million in sales related to COVID-19 molecular testing, down 67% Y/Y.

* Gross margin declined to 39.8% from 63.1% a year ago, impacted by the build-out of manufacturing capacity to support the InteliSwab COVID-19 Rapid Test launch, production inefficiencies, and higher scrap rates.

* The Company posted an operating loss of ($13.0) million compared to an income of $4.4 million.

* OraSure posted an EPS loss of $(0.21), compared to an income of $0.01, and fell short of the consensus Wall Street estimate for a loss of $(0.04).

* Guidance: OraSure raised its FY21 sales guidance to $230 million - $233 million (lower than consensus of $235.9 million), up from the previous guidance of approximately $230 million.

* The Company continues to expect total InteliSwab revenue of approximately $30 million for FY21.

* It expects Q4 sales of $60 million - $63 million.

* Related: FDA Authorizes OraSure's COVID-19 Rapid Tests For OTC Single-Use.

* Price Action: OSUR shares closed at $11.14 on Wednesday.