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Chembio Diagnostics Reports Third Quarter 2018 Financial Results
Recent Accomplishments & Highlights
- Achieved total revenue of
$9.4 million , including net product sales of$7.9 million , for the third quarter 2018, representing increases of 24% and 28%, respectively, compared to the prior year period. - Announced and closed the acquisition of opTricon GmbH, a privately-held developer and manufacturer of hand-held analyzers for rapid diagnostic tests.
- Filed CE mark application for a point-of-care DPP® test to detect an undisclosed biomarker through the
AstraZeneca funded collaboration and development program. - Received
$10.5 million purchase commitment for 2019 from Bio-Manguinhos for the production of DPP® HIV and DPP® Leishmania assays inBrazil and their subsequent supply toBrazil's Ministry of Health . - Completed an underwritten public offering bringing an estimated
$16.6 million of net proceeds to the company.
“The Chembio team delivered strong performance in the third quarter of 2018, highlighted by double-digit revenue growth in our core business,” said
Third Quarter 2018 Financial Results
Total revenue for the third quarter of 2018 was
Gross product margin for the third quarter of 2018 was
Research and development expenses increased
Net loss for the third quarter of 2018 was
Cash and cash equivalents as of
Conference Call
Chembio will host a conference call today beginning at
About
Chembio is a leading point-of-care diagnostics company focused on detecting and diagnosing infectious diseases. The company’s patented DPP® technology platform, which uses a small drop of blood from the fingertip, provides high-quality, cost-effective results in 15-20 minutes. Coupled with Chembio’s extensive scientific expertise, its novel DPP® technology offers broad market applications beyond infectious disease, a number of which are under active development with collaboration partners. Chembio’s products are sold globally, directly and through distributors, to hospitals and clinics, physician offices, clinical laboratories, public health organizations, government agencies, and consumers. Learn more at www.chembio.com.
Forward-Looking Statements
Statements contained in the last paragraph under “Recent Accomplishments & Highlights” that are not historical facts may be forward-looking statements within the meaning of the Securities Act of 1933, as amended. Forward-looking statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements, which are estimates only, reflect management's current views, are based on certain assumptions, and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to Chembio's ability to obtain regulatory approvals in a timely manner, as well as the demand for Chembio's products. Chembio undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Chembio's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact Chembio's success are more fully disclosed in Chembio's most recent public filings with the
(Tables to follow)
Investor Relations Contact
Gilmartin Group
(415) 937-5402
investor@chembio.com
CHEMBIO DIAGNOSTICS, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the three months ended | For the nine months ended | |||||||||||||||
September 30, 2018 | September 30, 2017 | September 30, 2018 | September 30, 2017 | |||||||||||||
REVENUES: | ||||||||||||||||
Net product sales | $ | 7,856,038 | $ | 6,132,725 | $ | 21,112,126 | $ | 14,453,097 | ||||||||
License and royalty revenue | 228,553 | 150,000 | 707,010 | 477,631 | ||||||||||||
R&D, milestone and grant revenue | 1,292,202 | 1,304,649 | 3,995,115 | 3,096,626 | ||||||||||||
TOTAL REVENUES | 9,376,793 | 7,587,374 | 25,814,251 | 18,027,354 | ||||||||||||
COSTS AND EXPENSES: | ||||||||||||||||
Cost of product sales | 6,774,749 | 4,064,791 | 16,827,956 | 9,487,848 | ||||||||||||
Research and development expenses | 1,897,751 | 1,805,738 | 5,736,265 | 6,034,735 | ||||||||||||
Selling, general and administrative expenses | 3,034,130 | 2,305,358 | 7,987,914 | 6,903,055 | ||||||||||||
11,706,630 | 8,175,887 | 30,552,135 | 22,425,638 | |||||||||||||
LOSS FROM OPERATIONS | (2,329,837 | ) | (588,513 | ) | (4,737,884 | ) | (4,398,284 | ) | ||||||||
OTHER INCOME: | ||||||||||||||||
Interest income, net | 15,656 | 3,852 | 42,985 | 24,956 | ||||||||||||
LOSS BEFORE INCOME TAXES | (2,314,181 | ) | (584,661 | ) | (4,694,899 | ) | (4,373,328 | ) | ||||||||
Income tax provision | - | - | - | - | ||||||||||||
NET LOSS | $ | (2,314,181 | ) | $ | (584,661 | ) | $ | (4,694,899 | ) | $ | (4,373,328 | ) | ||||
Basic and diluted loss per share | $ | (0.16 | ) | $ | (0.05 | ) | $ | (0.34 | ) | $ | (0.36 | ) | ||||
Weighted average number of shares outstanding, basic and diluted | 14,173,620 | 12,311,098 | 13,872,055 | 12,293,781 | ||||||||||||
CHEMBIO DIAGNOSTICS, INC. AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
AS OF | ||||||
September 30, 2018 | December 31, 2017 | |||||
(Unaudited) | ||||||
- ASSETS - | ||||||
CURRENT ASSETS: | ||||||
Cash and cash equivalents | $ | 6,848,583 | $ | 3,790,302 | ||
Accounts receivable, net | 7,794,014 | 2,085,340 | ||||
Inventories, net | 5,978,426 | 4,423,618 | ||||
Prepaid expenses and other current assets | 1,579,750 | 554,383 | ||||
TOTAL CURRENT ASSETS | 22,200,773 | 10,853,643 | ||||
FIXED ASSETS, net | 2,372,896 | 1,909,232 | ||||
OTHER ASSETS: | ||||||
Intangible assets, net | 1,431,921 | 1,597,377 | ||||
Goodwill | 1,628,864 | 1,666,610 | ||||
Deposits and other assets | 331,423 | 589,159 | ||||
TOTAL ASSETS | $ | 27,965,877 | $ | 16,616,021 | ||
- LIABILITIES AND STOCKHOLDERS’ EQUITY - | ||||||
CURRENT LIABILITIES: | ||||||
Accounts payable and accrued liabilities | $ | 6,798,600 | $ | 3,046,303 | ||
Deferred revenue | 760,750 | 50,000 | ||||
Current portion of note payable | 202,096 | - | ||||
TOTAL CURRENT LIABILITIES | 7,000,696 | 3,096,303 | ||||
OTHER LIABILITIES: | ||||||
Note payable | 207,694 | 99,480 | ||||
Deferred tax liability | 333,318 | 341,042 | ||||
TOTAL LIABILITIES | 7,541,708 | 3,536,825 | ||||
TOTAL STOCKHOLDERS’ EQUITY | 19,663,419 | 13,079,196 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 27,205,127 | $ | 16,616,021 | ||
CHEMBIO DIAGNOSTICS, INC. AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
For the nine months ended | ||||||||
September 30, 2018 | September 30, 2017 | |||||||
Net cash used in operating activities | $ | (7,530,508 | ) | $ | (7,176,935 | ) | ||
Net cash used in investing activities | (401,897 | ) | (1,639,827 | ) | ||||
Net cash provided by financing activities | 10,990,466 | 134,280 | ||||||
Effect of exchange rate changes on cash | 220 | - | ||||||
INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | 3,058,281 | (8,682,482 | ) | |||||
Cash and cash equivalents - beginning of the period | 3,790,302 | 10,554,464 | ||||||
Cash and cash equivalents - end of the period | $ | 6,848,583 | $ | 1,871,982 | ||||
Source: Chembio Diagnostics, Inc.