Full Press Release Details
Therapeutics Reports Record Second Quarter Revenue and Earnings
Revenue Grows 22%; Earnings Increase 53% to $0.26 per Share
BEDFORD, Mass.--(BUSINESS WIRE)--August 1, 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 June 30, 2012.
For the second quarter of 2012, Anika's total revenue increased 22% to
$19.6 million, from $16.1 million in the second quarter last year. This
growth was primarily driven by higher shipments of Anika's ophthalmic
products, as well as strong domestic and international sales of the
company's flagship product, Orthovisc .
For the six-month period ended June 30, 2012, total revenue increased
22% to $34.0 million, from $27.9 million in the same period last year.
Product Gross Margin
Driven by higher production volume, product gross margin for the second
quarter of 2012 increased to 57.2%, from 56.8% in the second quarter
For the six-month period ended June 30, 2012, product gross margin
increased to 55.4%, from 53.7% in the first six months of 2011.
Operating and Net Income
Operating income for the second quarter of 2012 increased to $6.1
million, from $3.7 million in the same period in 2011. Net income rose
to $3.7 million, or $0.26 per diluted share, from $2.3 million, or $0.17
per diluted share, in the second quarter a year earlier. The company's
improved profitability was primarily driven by a combination of revenue
growth, higher gross margin, and lower operating expenses. The company's
effective tax rate for the second quarter of 2012 was 38.6%, compared
with 37.2% for the second quarter of 2011.
For the six-month period ended June 30, 2012, net income rose to $5.6
million, or $0.39 per diluted share, from $2.6 million, or $0.19 per
diluted share, in the first six months of 2011.
Research and development expenses for the second quarter of 2012
decreased to $1.3 million, from $1.6 million in the second quarter last
year. 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 preclinical and clinical studies.
Selling, general and administrative expenses in the second quarter of
2012 decreased to $4.1 million, from $4.2 million in the second quarter
of 2011. The decrease was primarily due to placing in service the
remainder of the company's Bedford manufacturing facility. Prior to the
first quarter of 2012, the previously unoccupied space was expensed to
Cash and Cash Equivalents
Anika's cash and cash equivalents at June 30, 2012 were $37.9 million,
compared with $34.0 million at March 31, 2012. The increase was
primarily the result of higher profitability and collections on accounts
Management Commentary
"Anika concluded the first half of 2012 with all-time record quarterly
revenue and record second-quarter earnings, while making solid progress
toward key strategic goals," said Charles H. Sherwood, Ph.D., president
and chief executive officer. "Total revenue was up 22% from the second
quarter last year, driven primarily by strong sales of our flagship
product, Orthovisc , both domestically and
internationally and increased shipments in our Ophthalmic franchise.
This growth was somewhat offset by year-over-year declines in sales of
Monovisc internationally, as well as slower sales of
our products by Anika S.r.l."
"We made solid operational progress in the second quarter," said
Sherwood. "We closed Anika's facility in Woburn, Mass. and consolidated
all of our manufacturing at our new facility in Bedford, Mass., by the
end of the quarter as planned. We had a positive meeting with the FDA
regarding our PMA application for Monovisc, and moved closer to starting
patient enrollment in clinical trials for two key pipeline products."
"Anika is starting the second half of 2012 with strong forward
momentum," Sherwood said. "Completing the manufacturing consolidation in
Bedford allows us to strengthen our focus on our product pipeline and
distribution network to drive top-line growth."
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Thursday, August 2, 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 866-783-2144 (international
callers dial 857-350-1603) and use the passcode 77982694. 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. These