Full Press Release Details
Therapeutics Reports First-Quarter 2011 Financial Results
S.r.l. Product Sales Grow 22%
BEDFORD, Mass.--(BUSINESS WIRE)--May 4, 2011--Anika Therapeutics, Inc.
(Nasdaq: ANIK), a leader in products for tissue protection, healing, and
repair, based on hyaluronic acid ("HA") technology, today reported
financial results for the first quarter ended March 31, 2011.
First quarter orthobiologics revenue rises 16%, driven by strong U.S.
Monovisc TM continues to perform well in Europe
Anika S.r.l. product sales grow 22% year-over-year
Revenue decreases year-over-year due to shipment delay
Anika's product revenue decreased 5.0% to $11.1 million for the first
quarter of 2011, from $11.6 million in the first quarter of 2010. Total
revenue for the first quarter of 2011 declined 5.8% to $11.7 million,
from $12.5 million in the year-earlier quarter. During the first
quarter, the Company experienced an equipment problem at its Woburn
facility that delayed shipment at the end of March of approximately $1.4
million of ophthalmic products and Orthovisc. These products were
shipped in April. Manufacturing operations resumed in April as well.
Product Gross Margin
Product gross margin for the first quarter of 2011 was 49.3%, compared
with 56% in the first quarter of 2010. The reduction was primarily due
to the loss of a batch of product as a result of the above described
Research and development expenses for the first quarter of 2011 were
$1.5 million, compared with $1.9 million in the first quarter of 2010.
The lower R&D spending was primarily due to timing of project spending,
and spending is expected to increase modestly in future quarters.
Selling, general and administrative expenses for the first quarter of
2011 were $4.0 million, compared with $4.3 million a year ago. The
reduction in SG&A expenses was primarily due to delays in FDA approval
of Monovisc and operational streamlining during the past 12 months,
following the acquisition of Anika S.r.l.
Operating and Net Income
Operating income for the first quarter of 2011 was $557,000, compared
with $1.2 million in the same period in 2010. Net income for the first
quarter of 2011 was $324,000, or $0.02 per diluted share, compared with
$714,000, or $0.05 per diluted share, in the first quarter of 2010. The
Company's tax rate for the first quarter of 2011 was 37.1%, versus 36.7%
Cash and Cash Equivalents
Anika's cash and cash equivalents at March 31, 2011 increased to $29.1
million, compared with $28.2 million at December 31, 2010, as a result
of positive cash flow from operations.
Management Commentary
"We began 2011 by making continued progress on our key goals for the
year," said Charles H. Sherwood, Ph.D., president and chief executive
officer. "Products from Anika S.r.l. are performing better, as product
sales increased by 22% compared to the first quarter of 2010, and we
expect that business to be at a breakeven level by the end of the year.
Domestically, demand for Orthovisc continues to be very strong, and our
efforts to expand distribution internationally for Orthovisc and
Monovisc are yielding positive results. In total, first-quarter
Orthobiologics product sales were up 16% year-over-year. We continue to
be optimistic about the prospects for FDA approval of Monovisc and our
other products under review."
"While the equipment problem was disappointing, we have addressed the
issue, shipped the $1.4 million of delayed orders in April, and do not
expect any negative revenue impact on 2011 results," added Sherwood.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, May 5, 2011 at 9:00
a.m. ET. In addition, the Company will answer questions concerning
business and financial developments and trends, and other business and
financial matters affecting the Company, some of the responses to which
may contain information that has not been previously disclosed.
To listen to the conference call, dial 866-510-0705 (International
callers dial 617-597-5363) and use the passcode 95070273. Please call
approximately 10 minutes before the starting time and reference Anika
Therapeutics. In addition, the conference call will be available through
a live audio webcast in the "Investor Relations" section of the Anika
Therapeutics website, www.anikatherapeutics.com. An accompanying
slide presentation also can be accessed via the Anika Therapeutics
website. The conference call will be archived and accessible on the same
website shortly after the conclusion of the call.
About Anika Therapeutics, Inc.
Headquartered in Bedford, Mass., Anika Therapeutics, Inc. develops,
manufactures and commercializes therapeutic products for tissue
protection, healing, and repair. These products are based on hyaluronic
acid (HA), a naturally occurring, biocompatible polymer found throughout
the body. Anika's products range from orthopedic/joint health solutions
led by Orthovisc, a treatment for osteoarthritis of the knee, to
surgical aids in the ophthalmic and anti-adhesion fields. The company
also offers aesthetic dermal fillers for the correction of facial
wrinkles. Anika's Italian subsidiary, Anika S.r.l, provides
complementary HA products in orthopedic/joint health and anti-adhesion,
as well as therapeutics in new areas such as advanced wound treatment
and ear, nose and throat care. Anika S.r.l.'s regenerative tissue
technology advances Anika's vision to offer therapeutic products that go
beyond pain relief to protect and restore damaged tissue.
The 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, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended, including, without
limitation, statements that may be identified by words such as
"remains," "focus," "expect," "prospective," "expanding," "building,"
"continue," "progress," "plan," "efforts," "hope," "believe,"
"objectives," "opportunities," "will," "seek," and other expressions
which are predictions of or indicate future events and trends and do not
constitute historical matters. These statements also include
those relating to: (i) the expectation that Anika S.r.l will be
breakeven by the end of the year, the success of efforts to expand
distribution internationally for Orthovisc and Monovisc, fulfillment of