Full Press Release Details
| Contacts: | ||
| Anika Therapeutics, Inc. | PondelWilkinson Inc. | |
| Charles H. Sherwood, Ph.D., CEO | Rob Whetstone (310) 279-5963 | |
| Kevin W. Quinlan, CFO | Wade Huckabee (310) 279-5971 | |
| (781) 932-6616 |
THERAPEUTICS REPORTS SECOND
2005 FINANCIAL RESULTS
WOBURN, Mass. July 27,
2005 Anika Therapeutics, Inc. (NASDAQ:ANIK) today reported financial
results for the second quarter and six months ended June 30, 2005.
Total revenue for the
second quarter of fiscal 2005 increased 12.1% to $7,020,000, from $6,262,000 in
the second quarter of 2004. The company
posted net income of $1,337,000 or $.12 per diluted share, for the 2005 second
quarter compared with $765,000, or $.07 per diluted share, for the same period
Total revenue for the
six-month period ended June 30, 2005 rose 15.4% to $14,311,000 from
$12,403,000 for the comparable period last year. Net income was $2,539,000, or $.22 per
diluted share, for the first six months of 2005 compared with $8,551,000, or
$.75 per diluted share, for the first six months of 2004. The 2004 net income figures include a
one-time tax benefit amounting to $7,039,000, or $.62 per diluted share,
recorded in the first quarter of last year.
During the quarter and
six months ended June 30, 2005, the company recorded contract revenue of
$2,249,000 and $3,167,000, respectively.
Product revenue was $4,084,000 for the second quarter, versus $5,690,000
in the same period last year. For the
six-month period, product revenue was $9,761,000 versus $11,259,000 in the
comparable period in 2004. Product
revenue in the second fiscal quarter of 2005 was adversely affected by
defective vendor-supplied finished goods packaged with the HA viscoelastic product
resulting in a recall of ophthalmic product which reduced sales in the quarter
by $1,359,000. While the company expects
to recapture most of these sales of ophthalmic product over the balance of the
year, it is still assessing the overall financial impact on results for 2005.
Sales of the company s
OrthoVisc product were $2,192,000 in the second quarter versus
$2,796,000 in the same period last year.
The company expects the previously announced involvement of the DePuy
Mitek division of Johnson & Johnson to begin impacting OrthoVisc sales
in the third quarter of this year. For
the six-month period, OrthoVisc sales were $4,593,000 versus $5,071,000 in the
comparable period of 2004. Ophthalmic
product sales for the second quarter were $1,570,000 versus $2,688,000 in the
second quarter of 2004 which reflects the impact of the recall discussed above,
and were $4,339,000 for the six-month period compared with $5,062,000 last
year. Second quarter sales of Hyvisc ,
the company s veterinary product, increased to $322,000 from $206,000 in the
year ago period. For the six-month
period, Hyvisc sales totaled $829,000 versus $1,126,000 last year.
Product gross margin for
the quarter was 48.2% versus 57.1% in the 2004 second quarter, reflecting the
impact of the recall and product mix. For the six-month period ended June 30,
product gross margin was 47.6% versus 54.1% in the comparable period last year.
Total operating expenses
were $2,936,000 for the second quarter of 2005, compared with $2,532,000 in the
second quarter of 2004. The increase
reflects continued research and development activity associated with two
clinical trials and an increase in selling, general and administrative expenses
related to increases in professional service fees. For the six-month period, total operating expenses
increased to $5,427,000 from $4,747,000 in 2004.
Anika s cash and cash
equivalents at June 30, 2005 totaled $39,930,000. The company has no long-term debt.
The company will hold a
conference call to review its financial results, business highlights and
outlook on Thursday, July 28, 2005, at 9:00 a.m. EDT. In addition, the company may address during
the conference call its business and financial developments and trends,
including those involving product lines and business partners; and other
business and financial matters affecting the company, which may contain
information that has not been previously disclosed. To listen to the conference call, dial 706-634-1550
approximately 10 minutes before the starting time and reference Anika
Therapeutics. In addition, the
conference call will be available to interested parties through a live audio
Internet broadcast at www.anikatherapeutics.com. The call will be archived and accessible on
the same Web site for one year shortly after the completion of the call.
Anika Therapeutics, Inc.
Headquartered in Woburn,
Mass., Anika Therapeutics, Inc. (www.anikatherapeutics.com) develops,
manufactures and commercializes therapeutic products and devices intended to
promote the repair, protection and healing of bone, cartilage and soft
tissue. These products are based on
hyaluronic acid (HA), a naturally occurring, biocompatible polymer found
throughout the body. Anika products
include OrthoVisc , a treatment for osteoarthritis of the knee
available internationally and marketed in the U.S. by DePuy Mitek and Ortho
Biotech Products, L.P., and Hyvisc , a treatment for equine
osteoarthritis marketed in the U.S. by Boehringer Ingelheim Vetmedica, Inc. Anika manufactures Amvisc and Amvisc Plus ,
HA viscoelastic products for ophthalmic surgery. It also produces STAARVISC -II, which is
distributed by STAAR Surgical Company and Shellgel for Cytosol Ophthalmics, Inc.
statements made in this press release which are not statements of historical
fact are forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934, including, without limitation, statements that may be identified by
words such as expectations, remains, focus, expected, prospective, expanding,
building, continue, progress, efforts, hope, believe, objectives,
opportunities, will, seek, and other expressions which are predictions of
or indicate future events and trends and which do not constitute historical
matters identify forward-looking statements.
These statements also include statements regarding: (i) the Company s
efforts and expectations in entering into long-term arrangements to market and
distribute ophthalmic and osteoarthritis products, (ii) the level of the
Company s revenue or sales in particular geographic areas and/or for particular
products, (iii) the market share of any of the Company s products, (iv) expectations
regarding future results of operations, including the Company s expectations