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BEAVERTON, Ore., April 24 /PRNewswire/ -- Epitope, Inc. (Nasdaq: EPTO) today reported its fiscal 1998 second quarter operating results. Revenues from continuing operations for the quarter ending March 31, 1998 were $2.1 million, as compared to revenues from continuing operations of $2.3 million for the comparable period in 1997. The Company reported a net loss from continuing operations of $734,000 for the quarter, or $0.05 per share, compared with a net loss from continuing operations of $964,000, or $0.07 a share, in the second quarter of fiscal year 1997. For the six-month period ended March 31, 1998, the Company incurred a loss from continuing operations of $1.7 million ($.13 per share) on revenues of $3.7 million as compared to a loss of $1.3 million ($.09 per share) on revenues of $5.0 million for the six-month period ended March 31, 1997. Operating results for fiscal 1998 were not affected by discontinued operations of Agritope, Inc, which was spun off to shareholders in December 1997. The costs of the spin-off and Agritope's operating losses through the spin-off date were accounted for in fiscal year 1997. The loss from discontinued operations in the comparable quarter and six months in 1997, including the former subsidiary Andrew and Williamson Sales Co., was $9.2 million and $13.3 million respectively. Sales of Epitope's OraSure(R) device for the quarter and six months ended March 31, 1998 totaled $1.6 million and $2.8 million respectively, compared to $1.7 million and $3.6 million in the same periods of fiscal 1997. OraSure sales for the 1998 periods reflected a reduction in inventories by major testing laboratories which, as previously reported, had built up inventory during fiscal 1997 as insurance companies made initial decisions about adoption of OraSure and expansion of use beyond pilot programs. The inventory levels are expected to be in line with current customer requirements by the third quarter of 1998. Sales of the OraSure device in the third fiscal quarter are expected to reach at least the levels of the second quarter. Because of the many smaller customers in the public health market who do not have a contractual arrangement with the Company, the expectations for future sales are based on forecasts by individual customer rather than by firm orders. "The insurance testing labs continue to report a strong increase in the number of OraSure samples being tested on a daily basis, and they expect this upward trend to continue," said John W. Morgan, President and Chief Executive Officer of Epitope. "In addition, the public health market has shown consistent sales growth and is expected to continue this upward trend with new product offerings recently introduced by Epitope." Sales of the Company's Western blot HIV confirmatory test increased slightly in the current quarter and six-month period as compared to the same periods in fiscal 1997. As of March 31, 1998, the Company had firm orders for the confirmatory HIV test totaling approximately $600,000 scheduled for shipment before June 30, 1998. Development contract revenue was $11,000 in the first six months of fiscal 1998, compared to $465,000 in the same period of fiscal 1997. Development contract revenue for the 1997 period consisted of work being performed by Epitope for SmithKline Beecham plc under an agreement that was discontinued in July 1997. A tabulation of operating highlights and balance sheet data follows (in thousands, except per share data): Three Months Ended Six Months Ended (unaudited) (unaudited) 3/31/98 3/31/97 3/31/98 3/31/97 Operating Highlights: Revenues (continuing operations) $2,103 $2,336 $3,706 $4,977 Net loss from continuing operations (734) (964) (1,689) (1,255) Net loss (734) (10,166) (1,689) (14,551) Per share: Income (loss) from continuing operations $(.05) $(.07) $(.13) $(.09) Net income (loss) $(.05) $(.74) $(.13) $(1.08) Selected Balance Sheet Data: 3/31/98 9/30/97 (unaudited) Cash and marketable securities $6,013 $9,076 Working capital 6,617 9,538 Shareholders' equity 8,187 15,014 Epitope, Inc. is an Oregon corporation that develops and markets medical diagnostic products. Its principal products, including the OraSure oral specimen collection device, focus on the use of oral fluid to detect HIV infection and other conditions, and are marketed primarily in the life insurance and public health sectors. Statements in this press release about future sales levels or other future events or performance are forward-looking statements. The company's actual results could be quite different. Factors that could affect results include the extent of future use of oral testing and OraSure in the insurance industry; ability of the company to develop product distribution channels; development of competing products; changes in federal or state law or regulations; and loss of key personnel. Although forward-looking statements help to provide complete information about the company, readers should keep in mind that forward-looking statements are much less reliable than historical information. Source: EPITOPE Inc. Content of this page is copyright and reprinted here for educational and historical information. |
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