Full Press Release Details
Therapeutics Reports Record First-Quarter Revenue and Earnings
Revenue Grows 22% and Earnings Increase to $0.14 per Share
BEDFORD, Mass.--(BUSINESS WIRE)--May 3, 2012--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 quarter ended March 31, 2012.
For the first quarter of 2012, Anika's product revenue increased 23% to
$13.6 million, from $11.1 million in the first quarter of 2011. Total
revenue for the first quarter of 2012 increased 22% to $14.4 million in
the first quarter of 2012, from $11.7 million in the first quarter of
2011. This growth was primarily driven by strong domestic sales of
Anika's flagship product, Orthovisc .
Higher international sales of Orthovisc, Monovisc
and post operative adhesion prevention products from Anika S.r.l., as
well as U.S. shipments of ophthalmic products, also contributed to the
Product Gross Margin
Driven by a more profitable product mix, product gross margin for the
first quarter of 2012 improved to 53%, from 49% in the first quarter of
Operating and Net Income
Operating income for the first quarter of 2012 increased to $3.1
million, from $557,000 in the same period in 2011. Net income rose to
$1.9 million, or $0.14 per diluted share, from $324,000, or $0.02 per
diluted share, in the first quarter a year earlier. This growth was
driven by a combination of increased revenue, higher gross margin, and
lower selling, general and administrative expenses. The Company's
effective tax rate for the first quarter of 2012 was 36.5%, versus 37.1%
for the first quarter of 2011.
Research and development expenses for the first quarter of 2012 at $1.5
million was approximately the same compared to last year's first
quarter. Anika continues to expect R&D expense to increase modestly in
the second half of 2012 on a year-over-year basis due to the anticipated
initiation of new preclinical and clinical studies.
Selling, general and administrative expenses in the first quarter of
2012 decreased to $3.4 million, from $4.0 million in the first quarter
of 2011. The decrease in expense for the quarter was primarily due to placing
in service the remainder of the Bedford manufacturing facility. Prior to
this quarter, the previously unoccupied space was expensed to SG&A.
Cash and Cash Equivalents
Anika's cash and cash equivalents at March 31, 2012 were $34.0 million,
compared with $35.8 million at December 31, 2011. The decrease was
primarily the result of lower cash collections on accounts receivable
due to a high proportion of the Q1 2012 sales occurring in March 2012,
and inventory build during the quarter.
Management Commentary
"Anika began 2012 on a solid note with a record first-quarter with
respect to earnings and 22% total revenue growth," said Charles H.
Sherwood, Ph.D., president and chief executive officer. "The growth on
our top line continues to be driven primarily by sales of Orthovisc in
our orthobiologics franchise, domestically and internationally. This
also was a strong quarter for international sales of Monovisc and our
post operative adhesion prevention products from Anika S.r.l., as well
as U.S. sales of our ophthalmic products."
"This also was a good quarter for Anika from an operational
perspective," said Sherwood. "We received approval from the FDA to
manufacture Orthovisc and Hyvisc as well
as our proprietary ophthalmic products for manufacture at our Bedford,
Mass. facility for sale in the United States. We are working with Bausch
& Lomb to obtain approval to manufacture their ophthalmic products in
the Bedford facility. This is the final step toward significantly
improving our operational efficiency by consolidating all of our
manufacturing in Bedford - a process we expect to complete in June of
"Anika performed well in the first quarter, and could have done even
better but for some supply/demand imbalances in our Woburn facility that
pushed some shipments into the second quarter, and some softness in
Anika S.r.l.'s revenue due to a first-quarter distribution partner
change in Italy. These issues have been addressed, and we believe that
we are well-positioned for record results in the second quarter and
year, and also to achieve our stated targets for growth in revenue and
operating margin, as further operational improvements in 2012 unfold,"
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Friday, May 4, 2012 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 866-314-4865 (international
callers dial 617-213-8050) and use the passcode 73814055. 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.