QuidelOrtho Corporation reported its financial results for the three and nine months ended September 29, 2024, revealing a decline in total revenues and significant losses compared to the previous fiscal period. Total revenues for the third quarter were $727.1 million, a decrease of 2% from $744.0 million in the same period of 2023. For the nine months, revenues fell 8% to $2,075.1 million from $2,255.2 million. The decline was primarily attributed to variability in U.S. respiratory products and the wind-down of the U.S. donor screening portfolio, which is expected to be completed by the end of 2025.

The company reported an operating income of $15.0 million for the third quarter, down from $26.3 million a year earlier. However, for the nine months, QuidelOrtho experienced an operating loss of $1,860.5 million, a stark contrast to the $99.0 million operating income reported in the same period of 2023. This significant loss was largely driven by a goodwill impairment charge of $1.7 billion for the North America reporting unit, triggered by a sustained decline in stock price and a faster-than-expected decline in COVID-19 and flu markets.

Net loss for the third quarter was $(19.9) million, compared to $(12.7) million in the prior year. For the nine months, the net loss escalated to $(1,873.6) million from $(17.1) million. The company also reported a comprehensive loss of $(1,847.1) million for the nine months, compared to $(2.7) million in the previous year.

QuidelOrtho's total assets decreased to $6,801.1 million as of September 29, 2024, down from $8,563.1 million at the end of 2023. Total stockholders’ equity also saw a significant decline, dropping to $3,186.7 million from $5,005.9 million. The company’s cash and cash equivalents increased to $143.7 million from $118.9 million, reflecting a net increase of $24.5 million for the nine months.

In terms of segment performance, North America revenues fell 6% to $436.2 million for the third quarter, while EMEA revenues increased by 13% to $84.0 million. The Labs segment reported a 4% revenue increase for the third quarter, driven by growth in recurring revenue, despite a decline in instrument revenue. The company continues to focus on expanding manufacturing capabilities and integrating the Ortho business to realize cross-selling revenue synergies, while also managing costs through strategic initiatives, including the sale of certain facilities.