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QuidelOrtho Corporation (QDEL-1.30%) has submitted its 10-Q filing for the quarterly period ended September 29, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $727.1 million from $744.0 million in the same quarter the previous year. This decrease is attributed to lower sales of Sofia SARS Antigen assays and the wind-down of the U.S. donor screening business.
Cost of sales, excluding amortization of intangibles, was $374.8 million, representing 51.5% of total revenues, compared to 50.3% in the same quarter of the previous year. The increase in cost ratio is due to a shift in product mix.
The company reported a net loss of $19.9 million for the quarter, compared to a net loss of $12.7 million in the previous year.
Cash provided by operating activities was $19.3 million, while cash used in investing activities was $112.0 million. Cash provided by financing activities was $117.7 million.
QuidelOrtho had a working capital of $385.3 million as of September 29, 2024. The company expects its current cash and cash equivalents, along with cash from operations and available credit, to be sufficient to meet its capital and operating needs for at least the next 12 months.
The filing also details a goodwill impairment charge of $1.7 billion related to the North America reporting unit, driven by revised short-term and mid-term forecasts for revenue and EBITDA expectations.
QuidelOrtho continues to focus on expanding its installed base through a reagent rental model, which allows purchasing decisions to be made at the lab manager level, thereby increasing sales of higher-margin assays, reagents, and other consumables.
The company is also pursuing cost-savings initiatives by evaluating its real estate footprint and consolidating operations to improve long-term results.
QuidelOrtho remains subject to ongoing legal proceedings, including a class action lawsuit related to statements regarding sales of COVID-19 diagnostic tests and the 510(k) submission for its Savanna RVP4 assay.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the QuidelOrtho Corp Com quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.