CIMA LABS Announces First Quarter Earnings Expected To Be At Upper End Of Previously Reported Guidance Of $.10-$.15 Per Diluted Share.Business Editors & Health/Medical Writers MINNEAPOLIS--(BUSINESS WIRE)--April 6, 2001 Company Reiterates Earnings Guidance of $.70 to $.80 Per Diluted Share For Full-Year 2001 In response to investor inquiries, CIMA LABS INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (Nasdaq:CIMA) today reported that earnings for the first quarter of 2001 ended March 31 are expected to be at the upper end of its previously announced range of $.10 to $.15 per diluted share. The Company also reiterated its previously announced earnings guidance for full-year 2001 of $.70 to $.80 per diluted share. The Company, which reported breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations net income of $.00 per diluted share in the first quarter of 2000, expects to report operating results for this year's first quarter during the first week of May. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the first quarter of 2001 are expected to be below the previously announced guidance of $6.5 million to $7.5 million, reflecting a shift of scheduled shipments of over-the-counter (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ) products from the first to the second quarter, caused by delays in receiving certain raw materials. These raw materials are currently being delivered, and the orders for these OTC products will be manufactured and shipped in the second quarter. The delayed shipments of OTC products will not have a material impact on the Company's first quarter profitability due to the lower margins associated with OTC products in comparison to the branded prescription products manufactured by CIMA. Branded prescription products are expected to account for a majority of the Company's first quarter product sales. About CIMA CIMA develops and manufactures prescription and over-the-counter products for pharmaceutical companies based upon its proprietary, fast-dissolve drug delivery technologies, OraSolv(R) and DuraSolv(TM). CIMA formulates a pharmaceutical company's active drug ingredient into a new, orally disintegrating dosage form A dosage form is the physical form of a dose of medication, such as a capsule or injection. The route of administration is dependent on the dosage form of a given drug. that dissolves quickly in the mouth without chewing or the need for water. Taste masking agents may be used with the Company's fast-dissolve technologies to prevent or minimize the unpleasant taste associated with many active drug ingredients. CIMA currently manufactures five pharmaceutical brands utilizing its OraSolv and DuraSolv technologies: three prescription and two over-the-counter. The information in this press release, including the information related to CIMA's expectations about sources of future revenues, gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. , other income, earnings and revenues, contain 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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. A number of factors could cause actual results to differ materially from CIMA's assumptions and expectations. These factors include consumer acceptance of the CIMA's products, the receipt of firm orders for CIMA's products, the completion of CIMA's accounting close for the first quarter of 2001, the success of pharmaceutical companies in marketing CIMA's products, production costs, production yields, capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. of production resources and returns on investments. Additional factors that may cause actual results to differ from CIMA's assumptions and expectations include those set forth under the heading "Factors That Could Affect Future Results" included in CIMA's most recent Annual Report on 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. filed by CIMA with the Securities and Exchange Commission. All forward-looking statements are qualified by, and should be considered in conjunction with, such cautionary statements. |
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