Anika Therapeutics Reports Second- Quarter Results; Also Restates Results for Fourth Quarter of 1998 and First Quarter of 1999.Business Editors WOBURN Woburn, village, England Woburn (w  `bərn), village, Bedfordshire, S central England. , Mass.--(BUSINESS WIRE)--Aug. 14, 2001
Anika Therapeutics therapeutics Treatment and care to combat disease or alleviate pain or injury. Its tools include drugs, surgery, radiation therapy, mechanical devices, diet, and psychiatry. Inc. (Nasdaq:ANIK ANIK Canadian COMSAT ) today reported that revenue for the second quarter ended June June: see month. 30, 2001, was $2,919,000, compared with $3,769,000 for the second quarter of 2000. The company recorded a net loss for the quarter of $2,650,000, or $0.27 per share, compared with a net loss of $218,000, or $.02 per share, for the same period last year. Results for the most recent quarter included charges totaling $1,401,000, or $0.14 on a per-share basis, for costs associated with a pending settlement of a shareholder class-action lawsuit lawsuit: see procedure; tort. and previously announced management changes. For the six months ended June 30, 2001, revenue was $5,098,000, compared with $6,490,000 for the first six months of 2000. The net loss for the first six months of 2001 was $4,969,000, or $0.50 per share, compared with a loss of $783,000, or $.08 per share, for the first six months of 2000. Chief Executive Officer Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. R. Potter A potter is someone who makes pottery. Potter may also refer to: People
Potter said Anika remains focused on the performance of its core business with existing customers, the ongoing clinical trial for ORTHOVISC Orthovisc Orthopedics An injectable hyaluronic acid for treating osteoarthritis of the knee; viscoelastic and lubricating properties are similar to normal synovial fluid. See Hyaluronic acid. (R), its product for osteoarthritis osteoarthritis or osteoarthrosis or degenerative joint disease Most common joint disorder, afflicting over 80% of those who reach age 70. It does not involve excessive inflammation and may have no symptoms, especially at first. of the knee, and research and development efforts aimed at expanding the company's product pipeline. Restated 1998 and 1999 Results Separately, the company said it is restating financial results for the fourth quarter of 1998 and the first quarter of 1999. This restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. involves the timing of recognition of revenues for the sale of ORTHOVISC(R) to Zimmer Inc., a former ORTHOVISC(R) distributor. As a result of the Securities and Exchange Commission's ongoing investigation, Anika and its independent auditors Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. concluded that certain revenue previously recognized in the fourth quarter of 1998 should have been recognized in the first quarter of 1999. Consequently, revenue for the fourth quarter of 1998 is reduced by $343,000 to $3,060,000 and revenue for the first quarter of 1999 is increased by the same amount to $3,679,000. The impact on earnings is a reduction of $119,000, or $.01 per share, to income of $489,000 in the fourth quarter of 1998 and an increase of the same amount to a loss of $3,050,000 for the first quarter of 1999. The restated revenue for the years ended Dec. 31, 1998 and 1999, is $12,930,000 and $13,826,000, respectively. The restated results for the years ended Dec. 31, 1998 and 1999, include, respectively, net income of $3,633,000, or $.33 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, and a net loss of $2,377,000, or $.23 per diluted share. The company expects to file an amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 2000. About Anika Therapeutics With headquarters in Woburn, Anika Therapeutics Inc. (www.anikatherapeutics.com) develops, manufactures and commercializes therapeutic products and devices intended to promote the repair, protection and healing Healing See also Medicine. Achilles’ spear had power to heal whatever wound it made. [Gk. Lit.: Iliad] Agamede Augeas’ daughter; noted for skill in using herbs for healing. [Gk. Myth. of bone, cartilage cartilage (kär`təlĭj), flexible semiopaque connective tissue without blood vessels or nerve cells. It forms part of the skeletal system in humans and in other vertebrates, and is also known as gristle. and soft tissue. These products are based on hyaluronic acid hyaluronic acid: see mucopolysaccharide. Hyaluronic acid A polysaccharide which is an integral part of the gel-like substance of animal connective tissue; it supposedly serves as a lubricant and shock absorbent in the joints. (HA), a naturally occurring, biocompatible biocompatible /bio·com·pat·i·ble/ (-kom-pat´i-b'l) being harmonious with life; not having toxic or injurious effects on biological function. polymer found throughout the body. In addition to ORTHOVISC(R), a treatment for osteoarthritis of the knee (not approved for sale in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ), Anika markets HYVISC(R) in the United States for the treatment of equine equine Any member of the ungulate family Equidae, which includes the modern horses, zebras, and asses, all in the genus Equus, as well as more than 60 species known only from fossils. Equines descended from the dawn horse (see Eohippus). osteoarthritis through Boehringer Ingelheim Vetmedica Inc. and manufactures AMVISC(R) and AMVISC(R) Plus, HA viscoelastic Adj. 1. viscoelastic - having viscous as well as elastic properties natural philosophy, physics - the science of matter and energy and their interactions; "his favorite subject was physics" products for ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. surgery, for Bausch & Lomb. The statements made in this news release that are not statements of historical fact are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve known and unknown risks, uncertainties and other factors. The words "believe," "will," "would," "expect," "anticipate," "intend," "estimate," "plan," "designed" and other expressions which are predictions of or indicate future events and trends and which do not constitute historical matters, identify forward-looking statements. The company's actual results could differ materially from any anticipated future results, performance or achievements described in the forward-looking statements as a result of a number of factors. In particular, there can be no assurance that the company will: (i) successfully complete clinical trials of ORTHOVISC(R); (ii) obtain clinical data to support a pre-market Pre-Market Trading done before the regular market opens. Notes: Participation by market makers and ECNs is voluntary, so in pre-market there may be less liquidity than during normal hours of trading. approval application and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. approval; and/or (iii) receive FDA or other regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals of ORTHOVISC(R) or that such approvals will be obtained in a timely manner or without the need for additional clinical trials. There can be no assurance that any delay in receiving any such approvals will not adversely affect the company's competitive position or, if completed, meaningful sales of the products will be achieved. There can be no assurances that the company's efforts to improve the financial performance of its core business will be successful. Furthermore, the company can make no assurances that research and product development efforts will result in meaningful new products. Certain other factors that might cause the company's actual results to differ materially from those in the forward-looking statements include those set forth under the headings "Business," "Risk Factors and Certain Factors Affecting Future Operating Results" and "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" in each of the company's annual report on Form 10-K for the year ended Dec. 31, 2000, and quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 30, 2001, as well as those described in the company's news releases and other SEC filings. -0-
ANIKA THERAPEUTICS INC.
Statements of Operations
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Product revenue $ 2,919,034 $ 3,668,765 $ 5,097,652 $ 6,289,598
Licensing revenue -- 100,000 -- 200,000
Total revenue 2,919,034 3,768,765 5,097,652 6,489,598
Cost of product
revenue 2,109,049 2,422,617 4,077,997 3,655,585
Gross profit 809,985 1,346,148 1,019,655 2,834,013
Operating expenses:
Research and
development 921,325 907,227 2,269,195 2,220,965
Selling, general and
administrative 1,858,790 987,151 3,247,364 1,986,613
Litigation settlement
costs 886,480 -- 950,716 --
Total operating
expenses 3,666,595 1,894,378 6,467,275 4,207,578
Loss from operations (2,856,610) (548,230) (5,447,620) (1,373,565)
Interest income, net 206,202 329,741 478,781 590,989
Net loss $(2,650,408)$ (218,489)$(4,968,839)$ (782,576)
Basic and diluted net
loss per common
share $ (0.27)$ (0.02)$ (0.50)$ (0.08)
Shares used for
computing basic and
diluted net loss per
common share 9,934,280 9,918,842 9,934,280 9,847,476
ANIKA THERAPEUTICS INC.
Balance Sheets
(Unaudited)
As of
June 30, Dec. 31,
2001 2000
ASSETS
Current assets:
Cash and cash equivalents $ 8,263,944 $ 8,265,936
Short-term investments 7,421,823 10,039,849
Accounts receivable, net 1,206,148 1,692,457
Inventories 4,624,673 4,737,645
Prepaid expenses and other current assets 475,067 612,890
Total current assets 21,991,655 25,348,777
Property and equipment, at cost 9,247,934 8,621,579
Less accumulated depreciation (5,969,815) (5,498,455)
Net property and equipment 3,278,119 3,123,124
Notes receivable from officers 253,000 382,000
Long-term deposits 118,660 124,600
Total assets $25,641,434 $28,978,501
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 1,651,609 870,502
Accrued expenses 1,881,041 1,395,677
Deferred revenue 237,657 --
Total current liabilities 3,770,307 2,266,179
Stockholders' equity:
Redeemable convertible preferred stock,
$.01 per value: Authorized 750,000 shares,
no shares issued and outstanding -- --
Undesignated preferred stock, $.01 par
value: Authorized 1,250,000 shares; no
shares issued and outstanding -- --
Common stock, $.01 par value: Authorized
30,000,000 shares; issued 9,991,943 shares 99,919 99,919
Additional paid-in capital 31,640,232 31,735,660
Deferred compensation (21,477) (244,549)
Treasury stock (at cost), 57,663 shares (279,756) (279,756)
Accumulated deficit (9,567,791) (4,598,952)
Total stockholders' equity 21,871,127 26,712,322
Total liabilities and stockholders'
equity $25,641,434 $28,978,501
ANIKA THERAPEUTICS INC.
Summary of Restated Results
As reported Restated Change
Quarter ended Dec. 31, 1998
Revenue $ 3,402,581 $ 3,059,601 $ (342,980)
Cost of sales 1,904,867 1,680,870 (223,997)
Gross profit 1,497,714 1,378,731 (118,983)
Net income $ 608,361 $ 489,378 $ (118,983)
Diluted net income (loss)
per share $ 0.06 $ 0.05 $ (0.01)
Shares 10,564,628 10,564,628 --
Year ended Dec. 31, 1998
Revenue $13,273,343 $12,930,363 $ (342,980)
Cost of sales 6,014,181 5,790,184 (223,997)
Gross profit 7,259,162 7,140,179 (118,983)
Net income $ 3,752,348 $ 3,633,365 $ (118,983)
Diluted net income (loss)
per share $ 0.34 $ 0.33 $ (0.01)
Shares 11,006,276 11,006,276 --
Quarter ended Dec. 31, 1999
Revenue $ 3,335,650 $ 3,678,630 $ 342,980
Cost of sales 1,708,171 1,932,168 223,997
Gross profit 1,627,479 1,746,462 118,983
Income before accounting
change 455,821 574,804 118,983
Cumulative effect of change
in accounting principal (3,625,000) (3,625,000) --
Net income $(3,169,179) $(3,050,196) $ 118,983
Diluted net income (loss)
per share:
Income before accounting
change $ 0.05 $ 0.06 $ 0.01
Cum effect of accounting
change (0.36) (0.36) --
Net income (loss) per share $ (0.31) $ (0.30) $ 0.01
Shares 10,077,488 10,077,488 --
Year ended Dec. 31, 1999
Revenue $13,482,662 $13,825,642 $ 342,980
Cost of sales 6,440,166 6,664,163 223,997
Gross profit 7,042,496 7,161,479 118,983
Income before accounting
change 1,129,274 1,248,257 118,983
Cumulative effect of change
in accounting principal (3,625,000) (3,625,000) --
Net income $(2,495,726) $(2,376,743) $ 118,983
Diluted net income (loss)
per share:
Income before accounting
change $ 0.11 $ 0.12 $ 0.01
Cum effect of accounting
change (0.35) (0.35) --
Net income (loss) per share $ (0.24) $ (0.23) $ 0.01
Shares 10,220,584 10,220,584 --
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion