OraSure (OSUR) 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 06, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	OSUR
Entity Registrant Name	ORASURE TECHNOLOGIES INC
Entity Central Index Key	1,116,463
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		55,483,238

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 94,558	$ 94,094
Short-term investments	7,689	7,225
Accounts receivable, net of allowance for doubtful accounts of $972 and $798	16,734	19,265
Inventories	12,325	13,242
Prepaid expenses	2,071	1,533
Other current assets	958	1,355
Total current assets	134,335	136,714
PROPERTY AND EQUIPMENT, net	20,204	20,083
INTANGIBLE ASSETS, net	12,616	12,591
GOODWILL	19,422	18,250
OTHER ASSETS	1,902	1,683
TOTAL ASSETS	188,479	189,321
CURRENT LIABILITIES:
Accounts payable	5,287	5,087
Deferred revenue	7,236	9,735
Accrued expenses	7,821	10,412
Total current liabilities	20,344	25,234
OTHER LIABILITIES	2,070	1,768
DEFERRED INCOME TAXES	$ 3,050	$ 2,883
COMMITMENTS AND CONTINGENCIES (Note 6)
STOCKHOLDERS' EQUITY
Preferred stock, par value $.000001, 25,000 shares authorized, none issued
Common stock, par value $.000001, 120,000 shares authorized, 55,482 and 55,705 shares issued and outstanding	$ 0	$ 0
Additional paid-in capital	343,519	345,253
Accumulated other comprehensive loss	(12,772)	(15,639)
Accumulated deficit	(167,732)	(170,178)
Total stockholders' equity	163,015	159,436
Total liabilities and stockholders' equity	$ 188,479	$ 189,321

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 972	$ 798
Preferred stock, par value	$ 0.000001	$ 0.000001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.000001	$ 0.000001
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	55,482,000	55,705,000
Common stock, shares outstanding	55,482,000	55,705,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
NET REVENUES:
Product	$ 25,245	$ 23,765
Other	3,844	3,323
Total revenue	29,089	27,088
COST OF PRODUCTS SOLD	8,776	10,090
Gross profit	20,313	16,998
OPERATING EXPENSES:
Research and development	2,366	3,440
Sales and marketing	8,706	7,884
General and administrative	6,542	5,965
Total operating expenses	17,614	17,289
Operating income (loss)	2,699	(291)
OTHER INCOME (EXPENSE)	(192)	409
Income before income taxes	2,507	118
INCOME TAX EXPENSE	61	5
NET INCOME	$ 2,446	$ 113
EARNINGS PER SHARE:
BASIC	$ 0.04	$ 0
DILUTED	$ 0.04	$ 0
SHARES USED IN COMPUTING EARNINGS PER SHARE:
BASIC	55,451	56,343
DILUTED	56,079	57,173

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
NET INCOME	$ 2,446	$ 113
OTHER COMPREHENSIVE INCOME (LOSS)
Currency translation adjustments	2,867	(3,811)
COMPREHENSIVE INCOME (LOSS)	$ 5,313	$ (3,698)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OPERATING ACTIVITIES:
NET INCOME	$ 2,446	$ 113
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation	1,452	1,475
Depreciation and amortization	1,354	1,409
Amortization of lease incentives	(19)
Unrealized foreign currency loss (gain)	141	(71)
Deferred income taxes	(18)	5
Changes in assets and liabilities
Accounts receivable	2,489	(552)
Inventories	990	57
Prepaid expenses and other assets	26	(290)
Accounts payable	758	(2,062)
Deferred revenue	(2,504)	(2,542)
Accrued expenses and other liabilities	(2,371)	(4,133)
Net cash provided by (used in) operating activities	4,744	(6,591)
INVESTING ACTIVITIES:
Purchases of short-term investments	(7,689)	(3,961)
Proceeds from maturities of short-term investments	7,689	5,000
Purchases of property and equipment	(1,593)	(437)
Net cash provided by (used in) investing activities	(1,593)	602
FINANCING ACTIVITIES:
Proceeds from exercise of stock options		121
Repurchase of common stock	(3,187)	(772)
Net cash used in financing activities	(3,187)	(651)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH	500	(680)
NET INCREASE (DECREASE) IN CASH	464	(7,320)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	94,094	92,867
CASH AND CASH EQUIVALENTS, END OF PERIOD	94,558	85,547
Cash paid for:
Income taxes	84	81
Noncash investing activities (accrued property and equipment purchases)	$ 444	$ 59

The Company

The Company	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company	1. The Company We develop, manufacture, market and sell diagnostic products and specimen collection devices using our proprietary technologies, as well as other diagnostic products, including immunoassays and other in vitro

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of our financial position and results of operations for these interim periods. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015. Results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results of operations expected for the full year. Use of Estimates Short-Term Investments Our available-for-sale securities as of March 31, 2016 and December 31, 2015 consisted of guaranteed investment certificates with amortized cost and fair value of $7,689 and $7,225, respectively. Fair Value of Financial Instruments Fair value measurements of all financial assets and liabilities that are being measured and reported on a fair value basis are required to be classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Included in cash and cash equivalents at March 31, 2016 and December 31, 2015, was $66,892 and $65,509 invested in a government money market fund. This fund has investments in government securities and is a Level 1 instrument. We offer a nonqualified deferred compensation plan for certain eligible employees and members of our Board of Directors. The assets of the plan are held in the name of the Company at a third-party financial institution. Separate accounts are maintained for each participant to reflect the amounts deferred by the participant and all earnings and losses on those deferred amounts. The assets of the plan are held in mutual funds and Company stock. The fair value of the plan assets as of March 31, 2016 and December 31, 2015 was $1,625 and $1,324, respectively, and was calculated using the quoted market prices of the assets as of those dates. All investments in the plan are classified as trading securities and measured as Level 1 instruments. The fair value of plan assets is included in other assets with the same amount included in other liabilities in the accompanying consolidated balance sheets. All of our available-for-sale securities are measured as Level 1 instruments as of March 31, 2016 and December 31, 2015. Inventories March 31, 2016 December 31, 2015 Raw materials $ 6,244 $ 7,895 Work in process 971 333 Finished goods 5,110 5,014 $ 12,325 $ 13,242 Property and Equipment Intangible Assets March 31, 2016 Amortization Gross Accumulated Net Customer list 10 $ 9,633 $ (4,292 ) $ 5,341 Patents and product rights 10 5,400 (3,471 ) 1,929 Acquired technology 7 7,482 (4,691 ) 2,791 Tradename 15 3,692 (1,137 ) 2,555 $ 26,207 $ (13,591 ) $ 12,616 December 31, 2015 Amortization Gross Accumulated Net Customer list 10 $ 9,051 $ (3,818 ) $ 5,233 Patents and product rights 10 5,400 (3,358 ) 2,042 Acquired technology 7 7,030 (4,172 ) 2,858 Tradename 15 3,469 (1,011 ) 2,458 $ 24,950 $ (12,359 ) $ 12,591 Goodwill We performed our last annual impairment assessment as of July 31, 2015 utilizing a qualitative evaluation and concluded that it was more likely than not that the fair value of our DNAG reporting unit is greater than its carrying value. We believe we have made reasonable estimates and assumptions to calculate the fair value of our reporting unit. If actual future results are not consistent with management’s estimates and assumptions, we may have to take an impairment charge in the future related to our goodwill. Future impairment tests will continue to be performed annually in the fiscal third quarter, or sooner if a triggering event occurs. As of March 31, 2016, we believe no indicators of impairment exist. The change in goodwill from $18,250 as of December 31, 2015 to $19,422 as of March 31, 2016 is a result of foreign currency translation. Revenue Recognition ® Our net revenues recorded on sales of the OraQuick ® We record shipping and handling charges billed to our customers as product revenue and the related expense as cost of products sold. Taxes assessed by governmental authorities, such as sales or value-added taxes, are excluded from product revenues. On June 10, 2014, we entered into a Master Program Services and Co-Promotion Agreement with AbbVie Bahamas Ltd., a wholly-owned subsidiary of AbbVie Inc. (“AbbVie”), to co-promote our OraQuick ® Pursuant to the Co-Promotion Agreement, we have granted exclusive co-promotion rights for the OraQuick ® ® ® Under the terms of this agreement, which runs through December 31, 2019, we are eligible to receive up to $75,000 in aggregate payments. We are recognizing this revenue ratably on a monthly basis over the term of the agreement. During the first quarter of 2016, $3,362 in exclusivity revenue was recognized. In addition, if certain performance-based milestones are achieved, we may be eligible to receive additional milestone payments. These payments would be based upon the aggregate number of new patients enrolled in the patient care database, in a given calendar year, after exceeding a baseline threshold, and could range from $3,500 to $55,500 annually over the term of the agreement. The first performance-based milestone period ended on December 31, 2015 and we did not achieve the milestone for that period. The agreement also contains certain termination, indemnification and other provisions, typical of agreements of this type. Under certain circumstances, either party may terminate the agreement before its expiration and such a termination could occur as early as December 31, 2016. Amounts related to this agreement are recorded as other revenue in our statements of operations. On June 12, 2015, we were awarded a grant for up to $10,400 in total funding from the U.S. Department of Health and Human Services (“HHS”) Office of the Assistant Secretary for Preparedness and Response’s Biomedical Advanced Research and Development Authority (“BARDA”) related to the development of our OraQuick ® ® Customer Sales Returns and Allowances ® ® Deferred Revenue Customer and Vendor Concentrations We currently purchase certain products and critical components of our products from sole-supply vendors. If these vendors are unable or unwilling to supply the required components and products, we could be subject to increased costs and substantial delays in the delivery of our products to our customers. Also, our subsidiary, DNAG, uses two third-party suppliers to manufacture its products. Our inability to have a timely supply of any of these components and products could have a material adverse effect on our business, as well as our financial condition and results of operations. Earnings Per Share The computations of basic and diluted earnings per share are as follows: Three Months Ended March 31, 2016 2015 Net income $ 2,446 $ 113 Weighted average shares of common stock outstanding: Basic 55,451 56,343 Dilutive effect of stock options and restricted stock 628 830 Diluted 56,079 57,173 Earnings per share: Basic $ 0.04 $ 0.00 Diluted $ 0.04 $ 0.00 For the three-month periods ended March 31, 2016 and 2015, outstanding common stock options and unvested restricted stock representing 4,843 and 2,702 shares, respectively, were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive. Foreign Currency Translation Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than functional currency are included in statement of operations in the period in which the change occurs. Net foreign exchange gains (losses) resulting from foreign currency transactions that are included in other income (expense) in our consolidated statement of operations were $(346) and $588 for the three months ended March 31, 2016 and 2015, respectively. Accumulated Other Comprehensive Loss We have defined the Canadian dollar as the functional currency of our Canadian subsidiary, DNAG, and as such, the results of its operations are translated into U.S. dollars, which is the reporting currency of the Company. The $2,867 and $(3,811) currency translation adjustments recorded in the first three months of 2016 and 2015, respectively, are largely the result of the translation of our Canadian operation’s balance sheets into U.S. dollars. Recent Accounting Pronouncements Revenue from Contracts with Customers In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued authoritative guidance under ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Accrued Expenses	3. Accrued Expenses March 31, 2016 December 31, 2015 Payroll and related benefits $ 3,386 $ 6,311 Professional Fees 1,639 1,014 Royalties 719 819 Other 2,077 2,268 $ 7,821 $ 10,412

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Stockholders' Equity	4. Stockholders’ Equity Stock-Based Awards We grant stock-based awards under the OraSure Technologies, Inc. Stock Award Plan, as amended and restated (the “Stock Plan”). The Stock Plan permits stock-based awards to employees, outside directors and consultants or other third-party advisors. Awards which may be granted under the Stock Plan include qualified incentive stock options, nonqualified stock options, stock appreciation rights, restricted awards, performance awards and other stock-based awards. We recognize compensation expense for stock option and restricted stock awards issued to employees and directors on a straight-line basis over the requisite service period of the award. To satisfy the exercise of options or vesting of restricted stock and performance awards, we issue new shares rather than purchase shares on the open market. Commencing in 2016, we have granted to certain executives performance-based restricted stock units (“PSUs”). Vesting of these PSUs is dependent upon our achievement of a performance-based metric during a one-year or three-year period, from the date of grant. Assuming achievement of each performance-based metric, the executive must also remain in our service for three years, commencing with the grant date. Performance during the one-year period will be based on a one-year earnings per share target. Upon achievement of the one-year target, the PSUs will then vest three years from grant date. Performance during the three-year period will be based on achievement of a three-year compound annual growth rate for consolidated product revenues. Upon achievement of the three-year target, the corresponding PSUs will vest in full. PSUs are converted into shares of our common stock once vested. Upon grant of the PSUs, the Company recognizes compensation expense related to these awards based on assumptions as to what percentage of each target will be achieved. The Company evaluates these target assumptions on a quarterly basis and adjusts compensation expense related to these awards, as appropriate. Total compensation cost related to stock options for the three months ended March 31, 2016 and 2015 was $733 and $822, respectively. Net cash proceeds from the exercise of stock options were $0 and $121 for the three months ended March 31, 2016 and 2015, respectively. As a result of the Company’s net operating loss carryforward position, no actual income tax benefit was realized from stock option exercises during these periods. The following table summarizes the stock option activity for the first three months ended March, 31, 2016: Options Outstanding on January 1, 2016 6,216 Granted 297 Exercised — Expired (292 ) Forfeited (7 ) Outstanding on March 31, 2016 6,214 Compensation cost of $719 and $653 related to restricted shares was recognized during the three months ended March 31, 2016 and 2015, respectively. In connection with the vesting of restricted shares and exercise of stock options during the three months ended March 31, 2016 and 2015, we purchased and immediately retired 98 and 112 shares with aggregate values of $527 and $772, respectively, in satisfaction of minimum tax withholding and exercise obligations. The following table summarizes restricted stock award activity for the three months ended March, 31, 2016: Shares Issued and unvested, January 1, 2016 697 Granted 525 Vested (298 ) Forfeited (2 ) Issued and unvested, March 31, 2016 922 During the three months ended March 31, 2016, we granted 417 PSUs. No compensation cost related to the PSUs was recognized during the three months ended March 31, 2016. Stock Repurchase Program On August 5, 2008, our Board of Directors approved a share repurchase program pursuant to which we are permitted to acquire up to $25,000 of our outstanding common shares. During the three months ended March 31, 2016, we purchased and retired 423 shares of common stock at an average price of $6.29 per share for a total cost of $2,660. No shares were purchased and retired during the three months ended March 31, 2015, under this share repurchase program.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	5. Income Taxes During the three months ended March 31, 2016 and 2015, we recorded foreign tax expense of $61 and $5, respectively. Foreign taxes during the three months ended March 31, 2016 includes $(18) of deferred tax benefits and $79 of current tax expense associated with amounts payable for provincial taxes. Foreign taxes during the three months ended March 31, 2015 includes $5 of deferred tax expense. Deferred income taxes reflect the tax effects of temporary differences between the basis of assets and liabilities recognized for financial reporting and tax purposes, and net operating loss and tax credit carryforwards. The significant components of our total deferred tax liability as of March 31, 2016 relate to the tax effects of the basis differences between the intangible assets acquired in the DNAG acquisition for financial reporting and tax purposes. In 2008, we established a full valuation allowance against our U.S. deferred tax asset. Management believes the full valuation allowance is still appropriate as of both March 31, 2016 and December 31, 2015 since the facts and circumstances necessitating the allowance have not changed. As a result, no U.S. federal or state income tax benefit was recorded for the three months ended March 31, 2016 and 2015.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies From time to time, we are involved in certain legal actions arising in the ordinary course of business. In management’s opinion, based upon the advice of counsel, the outcomes of such actions are not expected, individually or in the aggregate, to have a material adverse effect on our future financial position or results of operations.

Business Segment Information

Business Segment Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Business Segment Information	7. Business Segment Information We operate our business within two reportable segments: our “OSUR” business, which consists of the development, manufacture and sale of diagnostic products, specimen collection devices and medical devices; and our molecular collection systems or “DNAG” business, which primarily consists of the manufacture, development and sale of oral fluid collection devices that are used to collect, stabilize and store samples of genetic material for molecular testing. OSUR revenues are derived primarily from products sold in the United States and internationally to various clinical laboratories, hospitals, clinics, community-based organizations, public health organizations, distributors, government agencies, physicians’ offices, commercial and industrial entities, retail pharmacies, mass merchandisers, and to consumers over the internet. OSUR also derives other revenues, including exclusivity payments for co-promotion rights and other licensing and product development activities. DNAG revenues result primarily from products sold into the commercial market which consists of customers engaged in consumer genetics, clinical genetic testing, pharmacogenomics, personalized medicine, animal and livestock genetic testing, and microbiome testing. DNAG products are also sold into the academic research market, which consists of research laboratories, universities and hospitals. We organized our operating segments according to the nature of the products included in those segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (see Note 2). We evaluate performance of our operating segments based on revenue and operating income (loss). We do not allocate interest income, interest expense, other income, other expenses or income taxes to our operating segments. Reportable segments have no inter-segment revenues and inter-segment expenses have been eliminated. The following table summarizes operating segment information for the three months ended March 31, 2016 and 2015, and asset information as of March 31, 2016 and December 31, 2015: Three Months Ended March 31, 2016 2015 Net revenues: OSUR $ 22,199 $ 20,371 DNAG 6,890 6,717 Total $ 29,089 $ 27,088 Operating income (loss): OSUR $ 1,608 $ (1,521 ) DNAG 1,091 1,230 Total $ 2,699 $ (291 ) Depreciation and amortization: OSUR $ 639 $ 726 DNAG 715 683 Total $ 1,354 $ 1,409 Capital expenditures: OSUR $ 447 $ 76 DNAG 1,146 361 Total $ 1,593 $ 437 March 31, 2016 December 31, 2015 Total assets: OSUR $ 133,785 $ 137,082 DNAG 54,694 52,239 Total $ 188,479 $ 189,321 Our products are sold principally in the United States and Europe. The following table represents total revenues by geographic area, based on the location of the customer: Three Months Ended March 31, 2016 2015 United States $ 22,170 $ 20,416 Europe 3,879 4,374 Other regions 3,040 2,298 $ 29,089 $ 27,088 The following table represents total long-lived assets by geographic area: March 31, 2016 December 31, 2015 United States $ 15,601 $ 15,660 Canada 4,594 4,415 Other regions 9 8 $ 20,204 $ 20,083

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal and recurring adjustments) necessary for a fair presentation of our financial position and results of operations for these interim periods. These financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015. Results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results of operations expected for the full year.
Use of Estimates	Use of Estimates
Short-Term Investments	Short-Term Investments Our available-for-sale securities as of March 31, 2016 and December 31, 2015 consisted of guaranteed investment certificates with amortized cost and fair value of $7,689 and $7,225, respectively.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value measurements of all financial assets and liabilities that are being measured and reported on a fair value basis are required to be classified and disclosed in one of the following three categories: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Included in cash and cash equivalents at March 31, 2016 and December 31, 2015, was $66,892 and $65,509 invested in a government money market fund. This fund has investments in government securities and is a Level 1 instrument. We offer a nonqualified deferred compensation plan for certain eligible employees and members of our Board of Directors. The assets of the plan are held in the name of the Company at a third-party financial institution. Separate accounts are maintained for each participant to reflect the amounts deferred by the participant and all earnings and losses on those deferred amounts. The assets of the plan are held in mutual funds and Company stock. The fair value of the plan assets as of March 31, 2016 and December 31, 2015 was $1,625 and $1,324, respectively, and was calculated using the quoted market prices of the assets as of those dates. All investments in the plan are classified as trading securities and measured as Level 1 instruments. The fair value of plan assets is included in other assets with the same amount included in other liabilities in the accompanying consolidated balance sheets. All of our available-for-sale securities are measured as Level 1 instruments as of March 31, 2016 and December 31, 2015.
Inventories	Inventories March 31, 2016 December 31, 2015 Raw materials $ 6,244 $ 7,895 Work in process 971 333 Finished goods 5,110 5,014 $ 12,325 $ 13,242
Property and Equipment	Property and Equipment
Intangible Assets	Intangible Assets March 31, 2016 Amortization Gross Accumulated Net Customer list 10 $ 9,633 $ (4,292 ) $ 5,341 Patents and product rights 10 5,400 (3,471 ) 1,929 Acquired technology 7 7,482 (4,691 ) 2,791 Tradename 15 3,692 (1,137 ) 2,555 $ 26,207 $ (13,591 ) $ 12,616 December 31, 2015 Amortization Gross Accumulated Net Customer list 10 $ 9,051 $ (3,818 ) $ 5,233 Patents and product rights 10 5,400 (3,358 ) 2,042 Acquired technology 7 7,030 (4,172 ) 2,858 Tradename 15 3,469 (1,011 ) 2,458 $ 24,950 $ (12,359 ) $ 12,591
Goodwill	Goodwill We performed our last annual impairment assessment as of July 31, 2015 utilizing a qualitative evaluation and concluded that it was more likely than not that the fair value of our DNAG reporting unit is greater than its carrying value. We believe we have made reasonable estimates and assumptions to calculate the fair value of our reporting unit. If actual future results are not consistent with management’s estimates and assumptions, we may have to take an impairment charge in the future related to our goodwill. Future impairment tests will continue to be performed annually in the fiscal third quarter, or sooner if a triggering event occurs. As of March 31, 2016, we believe no indicators of impairment exist. The change in goodwill from $18,250 as of December 31, 2015 to $19,422 as of March 31, 2016 is a result of foreign currency translation.
Revenue Recognition	Revenue Recognition ® Our net revenues recorded on sales of the OraQuick ® We record shipping and handling charges billed to our customers as product revenue and the related expense as cost of products sold. Taxes assessed by governmental authorities, such as sales or value-added taxes, are excluded from product revenues. On June 10, 2014, we entered into a Master Program Services and Co-Promotion Agreement with AbbVie Bahamas Ltd., a wholly-owned subsidiary of AbbVie Inc. (“AbbVie”), to co-promote our OraQuick ® Pursuant to the Co-Promotion Agreement, we have granted exclusive co-promotion rights for the OraQuick ® ® ® Under the terms of this agreement, which runs through December 31, 2019, we are eligible to receive up to $75,000 in aggregate payments. We are recognizing this revenue ratably on a monthly basis over the term of the agreement. During the first quarter of 2016, $3,362 in exclusivity revenue was recognized. In addition, if certain performance-based milestones are achieved, we may be eligible to receive additional milestone payments. These payments would be based upon the aggregate number of new patients enrolled in the patient care database, in a given calendar year, after exceeding a baseline threshold, and could range from $3,500 to $55,500 annually over the term of the agreement. The first performance-based milestone period ended on December 31, 2015 and we did not achieve the milestone for that period. The agreement also contains certain termination, indemnification and other provisions, typical of agreements of this type. Under certain circumstances, either party may terminate the agreement before its expiration and such a termination could occur as early as December 31, 2016. Amounts related to this agreement are recorded as other revenue in our statements of operations. On June 12, 2015, we were awarded a grant for up to $10,400 in total funding from the U.S. Department of Health and Human Services (“HHS”) Office of the Assistant Secretary for Preparedness and Response’s Biomedical Advanced Research and Development Authority (“BARDA”) related to the development of our OraQuick ® multi-phased ®
Customer Sales Returns and Allowances	Customer Sales Returns and Allowances ® ®
Deferred Revenue	Deferred Revenue
Customer and Vendor Concentrations	Customer and Vendor Concentrations We currently purchase certain products and critical components of our products from sole-supply vendors. If these vendors are unable or unwilling to supply the required components and products, we could be subject to increased costs and substantial delays in the delivery of our products to our customers. Also, our subsidiary, DNAG, uses two third-party suppliers to manufacture its products. Our inability to have a timely supply of any of these components and products could have a material adverse effect on our business, as well as our financial condition and results of operations.
Earnings Per Share	Earnings Per Share The computations of basic and diluted earnings per share are as follows: Three Months Ended March 31, 2016 2015 Net income $ 2,446 $ 113 Weighted average shares of common stock outstanding: Basic 55,451 56,343 Dilutive effect of stock options and restricted stock 628 830 Diluted 56,079 57,173 Earnings per share: Basic $ 0.04 $ 0.00 Diluted $ 0.04 $ 0.00 For the three-month periods ended March 31, 2016 and 2015, outstanding common stock options and unvested restricted stock representing 4,843 and 2,702 shares, respectively, were excluded from the computation of diluted earnings per share as their inclusion would have been anti-dilutive.
Foreign Currency Translation	Foreign Currency Translation Transaction gains and losses resulting from exchange rate changes on transactions denominated in currencies other than functional currency are included in statement of operations in the period in which the change occurs. Net foreign exchange gains (losses) resulting from foreign currency transactions that are included in other income (expense) in our consolidated statement of operations were $(346) and $588 for the three months ended March 31, 2016 and 2015, respectively.
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss We have defined the Canadian dollar as the functional currency of our Canadian subsidiary, DNAG, and as such, the results of its operations are translated into U.S. dollars, which is the reporting currency of the Company. The $2,867 and $(3,811) currency translation adjustments recorded in the first three months of 2016 and 2015, respectively, are largely the result of the translation of our Canadian operation’s balance sheets into U.S. dollars.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Revenue from Contracts with Customers In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued authoritative guidance under ASU 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost or market determined on a first-in, first-out basis and are comprised of the following: March 31, 2016 December 31, 2015 Raw materials $ 6,244 $ 7,895 Work in process 971 333 Finished goods 5,110 5,014 $ 12,325 $ 13,242
Summary of Intangible Assets	Intangible assets consist of the following: March 31, 2016 Amortization Gross Accumulated Net Customer list 10 $ 9,633 $ (4,292 ) $ 5,341 Patents and product rights 10 5,400 (3,471 ) 1,929 Acquired technology 7 7,482 (4,691 ) 2,791 Tradename 15 3,692 (1,137 ) 2,555 $ 26,207 $ (13,591 ) $ 12,616 December 31, 2015 Amortization Gross Accumulated Net Customer list 10 $ 9,051 $ (3,818 ) $ 5,233 Patents and product rights 10 5,400 (3,358 ) 2,042 Acquired technology 7 7,030 (4,172 ) 2,858 Tradename 15 3,469 (1,011 ) 2,458 $ 24,950 $ (12,359 ) $ 12,591
Computations of Basic and Diluted Earnings per Share	The computations of basic and diluted earnings per share are as follows: Three Months Ended March 31, 2016 2015 Net income $ 2,446 $ 113 Weighted average shares of common stock outstanding: Basic 55,451 56,343 Dilutive effect of stock options and restricted stock 628 830 Diluted 56,079 57,173 Earnings per share: Basic $ 0.04 $ 0.00 Diluted $ 0.04 $ 0.00

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Expenses	March 31, 2016 December 31, 2015 Payroll and related benefits $ 3,386 $ 6,311 Professional Fees 1,639 1,014 Royalties 719 819 Other 2,077 2,268 $ 7,821 $ 10,412

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Summary of Company's Stock Option Activity	The following table summarizes the stock option activity for the first three months ended March, 31, 2016: Options Outstanding on January 1, 2016 6,216 Granted 297 Exercised — Expired (292 ) Forfeited (7 ) Outstanding on March 31, 2016 6,214
Summary of Restricted Stock Award Activity	The following table summarizes restricted stock award activity for the three months ended March, 31, 2016: Shares Issued and unvested, January 1, 2016 697 Granted 525 Vested (298 ) Forfeited (2 ) Issued and unvested, March 31, 2016 922

Business Segment Information (T

Business Segment Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Summary of Operating Segment and Asset Information	The following table summarizes operating segment information for the three months ended March 31, 2016 and 2015, and asset information as of March 31, 2016 and December 31, 2015: Three Months Ended March 31, 2016 2015 Net revenues: OSUR $ 22,199 $ 20,371 DNAG 6,890 6,717 Total $ 29,089 $ 27,088 Operating income (loss): OSUR $ 1,608 $ (1,521 ) DNAG 1,091 1,230 Total $ 2,699 $ (291 ) Depreciation and amortization: OSUR $ 639 $ 726 DNAG 715 683 Total $ 1,354 $ 1,409 Capital expenditures: OSUR $ 447 $ 76 DNAG 1,146 361 Total $ 1,593 $ 437 March 31, 2016 December 31, 2015 Total assets: OSUR $ 133,785 $ 137,082 DNAG 54,694 52,239 Total $ 188,479 $ 189,321
Presentation of Total Revenues and Long-Lived Assets by Geographic Area	The following table represents total revenues by geographic area, based on the location of the customer: Three Months Ended March 31, 2016 2015 United States $ 22,170 $ 20,416 Europe 3,879 4,374 Other regions 3,040 2,298 $ 29,089 $ 27,088 The following table represents total long-lived assets by geographic area: March 31, 2016 December 31, 2015 United States $ 15,601 $ 15,660 Canada 4,594 4,415 Other regions 9 8 $ 20,204 $ 20,083

Summary of Significant Accoun19

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Thousands	Jun. 12, 2015	Sep. 30, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Available-for-sale securities, fair values			$ 7,689,000		$ 7,225,000
Cash and cash equivalents			94,558,000	$ 85,547,000	94,094,000	$ 92,867,000
Fair value of plan assets			1,625,000		1,324,000
Accumulated depreciation of property and equipment			33,701		33,013
Amount of goodwill at period end			$ 19,422,000		18,250,000
Expiration date of rights agreement			Dec. 31, 2019
Revenue recognized			$ 3,362,000
Maximum value of grant revenue from clinical and regulatory activities	$ 10,400,000
Initial grant revenue from clinical and regulatory activities	1,800,000
Remaining grant revenue from clinical and regulatory activities	$ 8,600,000
Period of grant	3 years
Additional contract revenue from clinical and regulatory activities		$ 7,200,000
Reserve for sales return and allowances			329,000		310,000
Deferred revenue			7,236,000		9,735,000
Net foreign exchange gains (losses)			(346,000)	588,000
Accumulated foreign currency adjustments included in other comprehensive loss amounted			2,867,000	$ (3,811,000)
Money Market Fund [Member] | Level I Instrument [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents			$ 66,892,000		$ 65,509,000
Common Stock Options and Unvested Restricted Stock [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of anti-dilutive securities excluded from EPS computation			4,843	2,702
Collaborative Arrangement Co-promotion [Member] | OraQuick HCV [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue recognition, milestone method description			We may be eligible to receive additional milestone payments. These payments would be based upon the aggregate number of new patients enrolled in the patient care database, in a given calendar year, after exceeding a baseline threshold, and could range from $3,500 to $55,500 annually over the term of the agreement. The first performance-based milestone period ended on December 31, 2015
Accounts Receivable [Member] | Customer Concentration Risk [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of concentration risk					0.00%
Up Front Payment Arrangement [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred revenue			$ 1,647,000		$ 784,000
AbbVie [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred revenue			$ 5,589,000		8,951,000
Customer One [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of concentration risk			10.00%
Customer Two [Member] | Net Consolidated Revenue [Member] | Customer Concentration Risk [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of concentration risk			12.00%	12.00%
Guaranteed Investment Certificates [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Available-for-sale securities, amortized cost			$ 7,689,000		7,689,000
Available-for-sale securities, fair values			7,225,000		$ 7,225,000
Other [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contract revenues from clinical and regulatory activities			482,000
Maximum [Member] | Collaborative Arrangement Co-promotion [Member] | OraQuick HCV [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Payments received for sale of exclusive rights			75,000,000
Additional annual payments to be received for sale of exclusive rights			$ 55,500,000
Maximum [Member] | Buildings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			40 years
Maximum [Member] | Computer Equipment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			10 years
Maximum [Member] | Machinery and Equipment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			10 years
Maximum [Member] | Furniture and Fixtures [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			10 years
Minimum [Member] | Collaborative Arrangement Co-promotion [Member] | OraQuick HCV [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Additional annual payments to be received for sale of exclusive rights			$ 3,500,000
Minimum [Member] | Buildings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			20 years
Minimum [Member] | Computer Equipment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			2 years
Minimum [Member] | Machinery and Equipment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			2 years
Minimum [Member] | Furniture and Fixtures [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Estimated useful lives of assets			2 years
DNA Genotek [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of third-party suppliers to manufacture DNAG's products			2

Summary of Significant Accoun20

Summary of Significant Accounting Policies - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory, Net [Abstract]
Raw materials	$ 6,244	$ 7,895
Work in process	971	333
Finished goods	5,110	5,014
Inventories	$ 12,325	$ 13,242

Summary of Significant Accoun21

Summary of Significant Accounting Policies - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross	$ 26,207	$ 24,950
Intangible Assets, Accumulated Amortization	(13,591)	(12,359)
Intangible Assets, Net	$ 12,616	$ 12,591
Customer List [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Amortization Period (Years)	10 years	10 years
Intangible Assets, Gross	$ 9,633	$ 9,051
Intangible Assets, Accumulated Amortization	(4,292)	(3,818)
Intangible Assets, Net	$ 5,341	$ 5,233
Patents and Product Rights [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Amortization Period (Years)	10 years	10 years
Intangible Assets, Gross	$ 5,400	$ 5,400
Intangible Assets, Accumulated Amortization	(3,471)	(3,358)
Intangible Assets, Net	$ 1,929	$ 2,042
Acquired Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Amortization Period (Years)	7 years	7 years
Intangible Assets, Gross	$ 7,482	$ 7,030
Intangible Assets, Accumulated Amortization	(4,691)	(4,172)
Intangible Assets, Net	$ 2,791	$ 2,858
Tradename [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible Assets, Amortization Period (Years)	15 years	15 years
Intangible Assets, Gross	$ 3,692	$ 3,469
Intangible Assets, Accumulated Amortization	(1,137)	(1,011)
Intangible Assets, Net	$ 2,555	$ 2,458

Summary of Significant Accoun22

Summary of Significant Accounting Policies - Computations of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
NET INCOME	$ 2,446	$ 113
Weighted average shares of common stock outstanding:
BASIC	55,451	56,343
Dilutive effect of stock options and restricted stock	628	830
Diluted	56,079	57,173
BASIC	$ 0.04	$ 0
DILUTED	$ 0.04	$ 0

Accrued Expenses - Schedule of

Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accrued Liabilities, Current [Abstract]
Payroll and related benefits	$ 3,386	$ 6,311
Professional fees	1,639	1,014
Royalties	719	819
Other	2,077	2,268
Accrued Expenses, Total	$ 7,821	$ 10,412

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Aug. 05, 2008
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options		$ 121,000
Income tax benefit realized from stock option exercises during period	$ 0	0
Total compensation cost	$ 1,452,000	$ 1,475,000
Share granted	525,000
Amount share repurchase program of common shares			$ 25,000,000
Stock Repurchase Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares purchased and retired	423	0
Average price of common stock	$ 6.29
Total cost of common stock purchased and retired	$ 2,660,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Proceeds from exercise of stock options	0	$ 121,000
Total compensation cost	733,000	822,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost	$ 719,000	$ 653,000
Vesting of restricted shares and exercise of stock options, withholding and exercise obligations	98,000	112,000
Restricted shares of common stock and stock options, aggregate values	$ 527,000	$ 772,000
Performance Based Restricted Stock [Member] | Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU Vesting period	1 year
Performance Based Restricted Stock [Member] | Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
PSU Vesting period	3 years
Performance Based Restricted Stock Unit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost	$ 0
Share granted	417,000

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Company's Stock Option Activity (Detail) shares in Thousands	3 Months Ended
	Mar. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Outstanding, Beginning Balance	6,216
Options, Granted	297
Options, Exercised	0
Options, Expired	(292)
Options, Forfeited	(7)
Options, Outstanding, Ending Balance	6,214

Stockholders' Equity - Summar26

Stockholders' Equity - Summary of Restricted Stock Award Activity (Detail) shares in Thousands	3 Months Ended
	Mar. 31, 2016shares
Equity [Abstract]
Shares, Issued and unvested, Beginning Balance	697
Shares, Granted	525
Shares, Vested	(298)
Shares, Forfeited	(2)
Shares, Issued and unvested, Ending Balance	922

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Foreign tax expense	$ 61,000	$ 5,000
Foreign deferred tax expense (benefits)	(18,000)	5,000
Foreign current tax expense (benefits)	79,000
U.S. federal income tax benefits	0	0
U.S. state income tax benefits	$ 0	$ 0

Business Segment Information -

Business Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016Segment
Segment Reporting [Abstract]
Number of reportable segments of company	2

Business Segment Information 29

Business Segment Information - Summary of Operating Segment and Asset Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net revenues	$ 29,089	$ 27,088
Operating income (loss)	2,699	(291)
Depreciation and amortization	1,354	1,409
Capital expenditures	1,593	437
Total assets	188,479		$ 189,321
OSUR [Member]
Segment Reporting Information [Line Items]
Net revenues	22,199	20,371
Operating income (loss)	1,608	(1,521)
Depreciation and amortization	639	726
Capital expenditures	447	76
Total assets	133,785		137,082
DNAG [Member]
Segment Reporting Information [Line Items]
Net revenues	6,890	6,717
Operating income (loss)	1,091	1,230
Depreciation and amortization	715	683
Capital expenditures	1,146	$ 361
Total assets	$ 54,694		$ 52,239

Business Segment Information 30

Business Segment Information - Presentation of Total Revenues and Long-Lived Assets by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 29,089	$ 27,088
Long-lived assets	20,204		$ 20,083
United States [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	22,170	20,416
Long-lived assets	15,601		15,660
Europe [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	3,879	4,374
Other Regions [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	3,040	$ 2,298
Long-lived assets	9		8
Canada [Member]
Segment Reporting, Revenue Reconciling Item [Line Items]
Long-lived assets	$ 4,594		$ 4,415