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BEAVERTON, Ore., Feb. 6 /PRNewswire/ -- Epitope, Inc. (Nasdaq: EPTO) today reported its first quarter operating results for fiscal 1998. Revenues from continuing operations for the quarter ending December 31, 1997 were $1.6 million, as compared to revenues from continuing operations of $2.6 million for the comparable period in 1997. The Company reported a net loss from continuing operations of $955,000 for the quarter, or $0.07 a share, compared with a net loss from continuing operations of $291,000, or $0.02 a share, in the first quarter of fiscal year 1997. Operating results for the first quarter of 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 in fiscal 1998 were accounted for in fiscal year 1997. The loss from discontinued operations in the comparable quarter in 1997, including the former subsidiary Andrew & Williamson Sales Co., was $4.1 million. Sales of Epitope's OraSure(R) device for the quarter totaled $1.1 million compared to $1.9 million in the first quarter of fiscal 1997. OraSure sales for the 1997 quarter reflected initial inventory build-up by major testing laboratories as insurance companies made initial decisions about adoption of OraSure and expansion of use beyond pilot programs. As previously reported, major insurance testing laboratories have reduced their inventories of OraSure devices. These inventory levels are expected to be in line with current customer requirements by the third quarter of 1998. "The insurance testing labs have recently reported 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. Mr. Morgan also stated, "Epitope is pleased with the progress of the transition of sales responsibility for the public health market from SmithKline Beecham plc to Epitope, which began in October 1997 and has resulted in sales slightly ahead of plan in the first quarter of fiscal 1998." Development contract revenue was $11,000 in the first quarter of fiscal 1998, compared to $282,000 in the first quarter of fiscal 1997. Development contract revenue for the 1997 quarter consisted of work being performed by Epitope for SmithKline Beecham plc under an agreement that was discontinued in July 1997. The Company maintained gross profit margins at 59% of sales, the same level as achieved in the first quarter of fiscal 1997, even though revenues were lower. As of December 31, 1997, Epitope had firm orders for delivery in the second quarter of fiscal 1998 totaling $460,000 for Western Blot products and $1.2 million for OraSure devices. A tabulation of operating highlights and balance sheet data follows (in thousands, except per share data): Quarter Ended OPERATING HIGHLIGHTS 12/31/97 12/31/96 Revenues (Continuing Operations) $1,603 $2,641 Net loss (Continuing Operations) (955) (291) Net loss (955) (4,384) Net loss per share (Continuing Operations) (0.07) (0.02) Net loss per share (0.07) (0.34) SELECTED BALANCE SHEET DATA 12/31/97 12/31/96 Cash and marketable securities $6,102 $9,076 Working capital 6,756 9,538 Total assets 11,161 17,012 Shareholders' equity 8,504 15,014 Epitope, Inc. is an Oregon corporation which 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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