Full Press Release Details
Therapeutics Reports Third-Quarter Financial Results
Revenue of $14.8 Million, Earnings per Share of $0.11 and Cash Generated
from Operations of $2.2 Million for the Quarter
on FDA Progress with Monovisc
BEDFORD, Mass.--(BUSINESS WIRE)--October 30, 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 September 30, 2012.
For the third quarter of 2012, Anika's total revenue was $14.8 million.
This total represents a 20% decrease compared with the same period last
year and reflects the impact of a temporary scale-up issue at our
Bedford manufacturing facility that prevented the company from filling
all of its orders for Orthovisc during the quarter. The
revenue shortfall impacted gross margin, operating, and net income. The
issue has been resolved, and Anika expects to fill all of its orders in
the current fourth quarter. In addition, the economic softness in Europe
and the negative effect of foreign exchange affected revenue for the
For the nine-month period ended September 30, 2012, total revenue
increased 5% to $48.8 million from the same period last year.
Product Gross Margin
Product gross margin for the third quarter of 2012 declined to 48.6%,
from 58.4% in the third quarter last year, reflecting lower production
For the nine-month period ended September 30, 2012, product gross margin
was 53.3%, compared to 55.6% in the first nine months of 2011.
Operating and Net Income
Operating income for the third quarter of 2012 was $2.7 million, as
compared to $4.8 million in the same period in 2011. Net income declined
to $1.6 million, or $0.11 per diluted share, from $3.0 million, or $0.22
per diluted share, in the third quarter a year earlier due to the lower
revenue and margins. The company's effective tax rate for the third
quarter of 2012 was 38.6%, compared with 37.6% for the third quarter of
2011. The higher tax rate was due to Anika SRL.
For the nine-month period ended September 30, 2012, net income increased
to $7.3 million, or $0.51 per diluted share, from $5.6 million, or $0.41
per diluted share, in the first nine months of 2011.
Research and development expenses for the third quarter of 2012
decreased to $1.2 million, from $1.5 million in the third quarter last
year due to the timing of development activities. Selling, general and
administrative ("SG&A") expenses in the third
quarter of 2012 decreased to $3.6 million, from $4.7 million in the
third 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
Cash and Cash Equivalents
Anika's cash and cash equivalents at September 30, 2012 were $39.9
million, compared with $35.8 million at December 31, 2011. The increase
was primarily the result of higher net income this year.
Management Commentary
"While the temporary supply constraint caused our financial results to
fall short of our expectations, the fundamentals of our business
remained very strong and we accomplished a great deal during the
quarter," said Charles H. Sherwood, Ph.D., president and chief executive
officer. "We have resolved the issues from the ramp up of our
manufacturing in Bedford and are now prepared for increased production
of our products. This is particularly timely now, because demand for
Orthovisc continues to grow, and we expect to fulfill all of the delayed
order requests in the fourth quarter."
"We also made progress on our PMA application for Monovisc, our
single-injection osteoarthritis product, during the third quarter," said
Sherwood. "We responded to the FDA on a subsequent set of questions they
had requested for purposes of clarification, and currently expect a
decision on our PMA application for Monovisc in the next two months.
"Looking ahead, we expect to report record fourth-quarter revenue,
driven by increased demand for Orthovisc and the fulfillment of the
delayed shipments. We also expect improved profitability in the quarter.
Looking farther ahead, we are enthusiastic about the growth
opportunities for our current products and the prospects for our product
pipeline," concluded Sherwood.
Conference Call Information
Anika will hold a conference call to discuss its financial results,
business highlights and outlook tomorrow, Wednesday, October 31, 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 866-730-5767 (international
callers dial 857-350-1591) and use the passcode 37817443. 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