Catalytica Reports Second Quarter and First Half Financial Results.MOUNTAIN VIEW, Calif.--(BW HealthWire)--July 23, 1998-- Catalytica, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CTAL CTAL Confederacion de Trabajadores de America Latina (Confederation of Latin American Workers) CTAL Canadian Tire Acceptance Limited CTAL Computer Technology Application Lab, Inc. CTAL Confidentially Typed Assembly Language ) today reported financial results for the second quarter and six months ended June June: see month. 30, 1998. Revenues for the second quarter were $96,077,000, compared with $7,762,000 a year ago, reflecting Catalytica Pharmaceuticals' acquisition of its Greenville, North Carolina
Greenville, one of the fastest growing cities in North Carolina, is the county seat of Pitt County, and is the principal city of the Greenville, North Carolina Metropolitan Statistical Area. manufacturing facility from Glaxo Wellcome This article is about the supermarket chain. For the pharmaceutical entrepreneur, see Henry Wellcome. For the charity and related companies, see Wellcome Trust. Wellcome (Chinese: 惠康 in July July: see month. 1997. Net income for the quarter was $5,033,000, or $0.08 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, compared with a net loss of $1,828,000, or $0.09 per diluted share, a year earlier. Net income was 18 percent above the first-quarter level, reflecting Catalytica Pharmaceuticals' efficient operating performance in the Greenville Greenville. 1 City (1990 pop. 45,226), seat of Washington co., W Miss., on Lake Ferguson, a deepwater harbor adjoining the Mississippi River; inc. 1886. plant. For the first half of 1998, revenues were $188,211,000, substantially above the $12,547,000 reported in the corresponding period last year. Net income for the six months was $9,284,000, or $0.15 per diluted share, compared with a net loss of $4,153,000, or $0.21 per diluted share in the first six months of 1997. During the quarter, Catalytica Pharmaceuticals announced an expansion of its supply agreement with Glaxo Wellcome. The amendment to the original five-year, $800 million agreement, which was an integral component of the 1997 Greenville acquisition, calls for Catalytica to increase production of certain Glaxo Wellcome products in 1998 and 1999. About three-quarters Noun 1. three-quarters - three of four equal parts; "three-fourths of a pound" three-fourths common fraction, simple fraction - the quotient of two integers three-quarters npl → of the additional $50 million in expected revenues will be realized in 1999. Catalytica Pharmaceuticals also made progress during the quarter towards additional preferred supplier collaborations with pharmaceutical companies as evidenced by a new contract for production of an intravenous intravenous /in·tra·ve·nous/ (-ve´nus) within a vein or veins.intrave´nously in·tra·ve·nous adj. Abbr. IV Within or administered into a vein. multi-vitamin for Astra USA, Inc. Early in the quarter, Catalytica Combustion combustion, rapid chemical reaction of two or more substances with a characteristic liberation of heat and light; it is commonly called burning. The burning of a fuel (e.g., wood, coal, oil, or natural gas) in air is a familiar example of combustion. Systems and Pratt & Whitney Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Inc. announced an agreement under which Catalytica's XONON(TM) Combustion System will be featured as standard equipment on a new family of gas turbines targeted at the growing distributed power market. In addition, discussions with a number of other leading manufacturers regarding commercialization opportunities for XONON have taken on increased urgency. With demand for new turbines currently very strong, manufacturers are keenly interested in differentiating their products with technology capable of delivering ultra low emissions. Ricardo B. Levy, President and Chief Executive Officer of Catalytica, Inc., commented, "We are pleased with our financial results, and with the efficiency and productivity they reflect at our Greenville pharmaceutical research and manufacturing facility. In terms of both product quality and service, the plant is surpassing the expectations of our manufacturing partners, including Glaxo Wellcome -- as demonstrated by its recent decision to expand our supply agreement. The strong performance of Catalytica Pharmaceuticals is enabling us to develop additional growth opportunities in pharmaceuticals, as well as to pursue the commercialization of Combustion Systems' XONON and other proprietary technologies." Catalytica, Inc., through its subsidiaries, provides catalytic cat·a·lyt·ic adj. Of, involving, or acting as a catalyst: "Deregulation's catalytic power . . . is still reshaping the banking, communications, and transportation industries" Ellyn E. technologies and advanced products that are designed to improve manufacturing processes and solve environmental problems economically. The three subsidiaries are Catalytica Pharmaceuticals, Inc., which provides a broad range of products and services to the pharmaceutical industry; Catalytica Combustion Systems, Inc., which produces XONON for the energy market; and Catalytica Advanced Technologies, Inc., which develops new catalytic technologies. For more information, please visit Catalytica's web site at www.catalytica-inc.com. This news release contains 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. regarding Catalytica's future operation of its manufacturing facilities, progress towards strategic and financial goals and Catalytica's competitive position in its markets. These statements involve risks and uncertainty, including without limitation, the ability to operate the manufacturing facilities efficiently, the ability to perform cost-effectively and in a timely manner, product development delays, changes in customer demand for product, the company's competitive position, the impact of 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. and other regulations on pharmaceutical and biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. manufacturing, the ability to successfully complete the design and development of the XONON Combustion System and to achieve the anticipated benefits, changes in the regulatory environment and the impact of market demands, and actual results may be materially adversely affected. Investors are encouraged to review Catalytica's 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 ending December 31, 1997 and the Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 1998 for a more complete discussion of factors that could affect Catalytica's future performance. -0-
Catalytica, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Product sales $ 93,766 $ 6,262 $184,046 $ 9,321
Research revenues 2,311 1,500 4,165 3,226
Total revenues 96,077 7,762 188,211 12,547
Costs and expenses:
Cost of product sales 77,696 6,013 154,808 9,087
Research and
development 6,259 2,240 10,095 4,439
Selling, general and
administrative 3,829 1,001 7,256 1,991
Total costs and expenses 87,784 9,254 172,159 15,517
Operating income (loss) 8,293 (1,492) 16,052 (2,970)
Interest expense, net (1,748) 114 (3,464) 267
Loss on joint venture (1,152) (450) (2,307) (1,450)
Income taxes (360) -- (997)
Net income (loss) $ 5,033 $ (1,828) $ 9,284 $ (4,153)
Net income (loss) per share:
Basic $ 0.09 $ (0.09) $ 0.16 $ (0.21)
Diluted $ 0.08 $ (0.09) $ 0.15 $ (0.21)
Shares used in computing
net income (loss) per share:
Basic 53,035 19,918 52,993 19,987
Diluted 59,301 19,918 58,936 19,987
Catalytica, Inc.
Condensed Consolidated Balance Sheet
(in thousands)
June 30, Dec. 31,
1998 1997
Assets:
Cash and short-term investments $ 49,331 $ 47,067
Accounts and notes receivable 21,413 14,012
Inventory 100,765 114,245
Other current assets 2,244 2,105
Total current assets 173,753 177,429
Property and equipment, net 156,883 155,804
Other assets 3,371 2,040
$334,007 $335,273
Liabilities and Stockholders' Equity:
Current liabilities $ 35,451 $ 39,672
Current portion of long-term debt 10,331 50,332
Total current liabilities 45,782 90,004
Long-term debt 77,712 75,069
Other long-term liabilities 9,314 10,011
Minority interest 41,000 11,000
Class A and B common stock 97,079 97,079
Stockholders' equity 63,120 52,110
$334,007 $335,273
-0- CONTACT: Catalytica, Inc. Lawrence W. Briscoe, 650/940-6370 (CFO See Chief Financial Officer. ) Lloyd Baylis, 650/960-3000 (Mgr. Corp. Mktng. and Commun.) http://www.catalytica-inc.com |
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