Alcide Corporation Releases Financial Results for the Third Quarter of Fiscal Year 2004.Business Editors REDMOND, Wash.--(BUSINESS WIRE)--April 12, 2004 Alcide Corporation (Nasdaq:ALCD ALCD Association of Law Costs Draftsmen ALCD Analogue Libraries on Low-Cost CMOS Digital Process (ESPRIT Project 8030) ) today released financial results for its third fiscal quarter and nine months ended Feb. 29, 2004. Alcide earned $208,090 or $.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share on total revenue of $5,843,792 during the quarter ended Feb. 29, 2004, as compared to net income of $279,799 or $.10 per share on total revenues on $5,503,594 for the third quarter last fiscal year. During the nine month period ended Feb. 29, 2004, the Company earned $362,350 or $.14 per share on revenues of $17,269,704 versus net income of $776,381 or $.29 per share on total revenue of $16,327,338 for the nine month period in fiscal 2003. Earnings for the nine month period were adversely affected by two occurrences reported more fully in Alcide's second quarter earnings release: 1. Expenses related to the Company's patent infringement patent infringement n. the manufacture and/or use of an invention or improvement for which someone else owns a patent issued by the government, without obtaining permission of the owner of the patent by contract, license or waiver. lawsuit against Bio-Cide International were $416,579 and 2. The Company expensed $402,480 to remove and write down the value of SANOVA(R) assets taken out of service during the economic downturn in the poultry poultry, domesticated fowl kept primarily for meat and eggs; including birds of the order Galliformes, e.g., the chicken, turkey, guinea fowl, pheasant, quail, and peacock; and natatorial (swimming) birds, e.g., the duck and goose. industry and from one nonproductive non·pro·duc·tive adj. 1. Not yielding or producing: nonproductive land. 2. Not engaged in the direct production of goods: nonproductive personnel. n. red meat plant. Without these occurrences, the Company's net income would have been $894,738 or $.33 per share for the nine month period ended Feb. 29, 2004. Alcide's net cash provided by operating activities for the nine months ended Feb. 29, 2004, was $4,253,285 an amount 55% higher than the $2,740,074 generated during the nine month period in fiscal 2003. SANOVA Food Safety Sales of SANOVA food antimicrobial antimicrobial /an·ti·mi·cro·bi·al/ (-mi-kro´be-al) 1. killing microorganisms or suppressing their multiplication or growth. 2. an agent with such effects. to the food processing Food processing is the set of methods and techniques used to transform raw ingredients into food for consumption by humans or animals. The food processing industry utilises these processes. industries totaled $3,723,277 for the quarter ended Feb. 29, 2004, an amount $499,542 or 15% higher than for the third fiscal quarter last year. SANOVA sales during the nine months ended Feb. 29, 2004, were $11,033,097 an amount $911,904 or 9% higher than the equivalent nine months last fiscal year. John Richards John D. Richard Q.C. (born July 30, 1934) is the Chief Justice of Canada's Federal Court of Appeal. Richard was born in Ottawa and received a Bachelor of Arts degree in Political Science from the University of Ottawa in 1955, followed by his law studies at Osgoode Hall Law , president of Alcide Corporation, commented, "The economic conditions in the meat and poultry processing industries have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. . Within the poultry industry, processors and the USDA USDA, n.pr See United States Department of Agriculture. have successfully met the challenges posed by the recent Avian influenza avian influenza: see influenza. outbreak to a far greater degree than many international competitors. This, coupled with an increase in the export quota to Russia, has led to improved product pricing. As a result, Alcide has redeployed SANOVA systems from three idled sites to new customer operations and in addition, we will add three major new poultry customers during the fiscal fourth quarter. The beef processing industry has also reacted appropriately to the recent "mad cow" scare and economic conditions within the industry appear to have stabilized. Certainly, the demand for SANOVA has improved dramatically and during the fourth quarter of fiscal 2004, we expect to start SANOVA application in 10 to 15 new beef operations." Animal Health and Surface Disinfectants The Company's animal health and surface disinfectant disinfectant, agent that destroys disease-causing microorganisms and their spores. Disinfectants, or germicides, are sometimes considered to be substances applied to inanimate bodies, whereas antiseptics, not so potent, are agents that kill microbes on living things. revenues for the quarter ended Feb. 29, 2004, were $2,120,515 including $321,974 in license revenue. During the third quarter last fiscal year, animal health and surface disinfectant revenues were $2,279,859 including $330,722 in license revenue. Year-to-date, the Company's animal health and surface disinfectant revenues were $6,236,607 including $917,387 in license revenue. James Winter, corporate vice president and general manager of the Company's animal health business, explained that, "The license revenue (from the Company's largest distributor, IBA IBA abbr. International Bar Association IBA (in Britain) Independent Broadcasting Authority IBA n abbr (Brit) (= Independent Broadcasting Authority ) is a royalty received on Alcide products manufactured by IBA. If an equivalent amount of Alcide product had been sold to IBA, year-to-date animal health and surface disinfectant sales would have been approximately $6,850,000, an increase of 4% over prior year." Winter went on to say that, "The Company's animal health business has been helped by improving U.S. milk prices and the strong performance of the Company's disinfectant and ancillary product lines. However, European sales were negatively impacted by low milk prices and increased competition." In the third quarter UDDERgold(R) Platinum, the next generation of UDDERgold(R) was launched in the Netherlands. About Alcide Alcide Corporation develops and markets unique biocidal bi·o·cid·al adj. Of or relating to an agent that is destructive to living organisms. biocidal (bī´ōsī´d products based on its patented technology. Alcide currently sells anti-infective products to the animal health market, disinfecting products to medical industries and SANOVA antimicrobial to the food processing industries.
Selected Financial Data
Quarter Ended Nine Months Ended
Feb. 29, Feb. 28, Feb. 29, Feb. 28,
2004 2003 2004 2003
----------- ----------- ------------ ------------
Total Revenue $5,843,792 $5,503,594 $17,269,704 $16,327,338
Pretax Income $ 320,137 $ 430,460 $ 557,461 $ 1,194,432
Net Income $ 208,090 $ 279,799 $ 362,350 $ 776,381
Average Shares
Outstanding 2,712,728 2,682,765 2,680,147 2,681,962
Diluted Earnings
Per Share $ 0.08 $ 0.10 $ 0.14 $ 0.29
Note: The following schedule reconciles reported net income to results
adjusted for patent lawsuit expenses and asset impairment expenses.
Nine Months Ended
February 29, 2004
--------------------------
Pre-tax income as reported $557,461
Add back patent lawsuit expenses 416,579
Add back asset impairment expenses 402,480
Adjusted pre-tax income 1,376,520
Adjusted net income 894,738
Adjusted diluted earnings per share .33
The Company will host a conference call at 11:00 am PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT (2 pm EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) on April 14, 2004. Interested parties should check the website at www.alcide.com for connection instructions. This earnings report includes forward looking statements which involve risk and uncertainty including, without limitation, risk of dependence on third party suppliers, market acceptance of and demand for the Company's products, distribution capabilities and development of technology and regulatory approval thereof. Investors are encouraged to refer to the Company's 10-Q report for the quarter ended Feb. 29, 2004, for a more detailed explanation of financial performance. |
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