Hi-Tech Pharmacal reports higher first quarter sales.AMITYVILLE, N.Y.--(BUSINESS WIRE)--Sept. 16, 1996--Hi-Tech Pharmacal Co. Inc. (Nasdaq: HITK) reported sales and earnings for its first quarter ended July 31, 1996 with net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $4,155,000 vs. $3,863,000 for the same period last year. The company showed a net loss of $61,000 or ($.01) per share vs. a gain of $318,000 or $.07 per share for the same period last year. In reporting these earnings, the company attributed the marginal loss to depreciation and continued start-up costs which include product development and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in its sterile facility which began production in the fourth quarter of last year, increased research and development to fund future product introductions, and increased advertising expenses for its Health Care Products Division. In addition, the company noted the overall sluggish environment for generic drugs generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. which has shown decreased demand and overall pricing competition over the last year. In commenting on the earnings report, Bernard Seltzer, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "While we are all experiencing decreased demand for generic products along with some price erosion, Hi-Tech is keeping a close watch on operating expenses and costs. In addition, we continue to increase our distribution channels and to receive approvals from the 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. , having received four ANDA ANDA abbr. abbreviated new drug application approvals since May 1996. We are building a solid foundation which we believe should lead to years of increased sales and profitability. In addition, Hi-Tech has several contract manufacturing agreements in place, as well as pending negotiations, which will help offset a portion of costs associated with the sterile area." Seltzer added, "The company has retained EGS EGS European Geophysical Society EGS European Graduate School EGS El Goonish Shive (webcomic) EGS Environmental Goods and Services EGS Employment Guarantee Scheme (UK) EGS EOS Ground System Securities Corp. to act as its investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and in exploring various strategic opportunities. We are very enthusiastic about our future outlook." Hi-Tech Pharmacal Co. Inc. manufactures more than 100 prescription and over-the-counter generic and branded pharmaceuticals in liquid and semi-solid (creams, ointments ointments, n.pl semisolid, non–water-based treatments that are not water-soluble and that create protective films to prevent dehydration of the skin. , suppositories suppositories, n.pl solid capsules made of materials that melt at body temperature and are used to deliver medicinal substances into the rectum. and gels) dosage forms, primarily for the private label market. The company also manufactures and markets its own products under the name of H-T as well as Sooth-It brand, Diabetic Tussin, DiabetiDerm and DiabetiSweet brand products through its Health Care Products Division. This press release contains forward-looking statements. The company's actual results in the future could differ significantly from the results discussed in such forward-looking statements. -0-
HI-TECH PHARMACAL CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three months ended
July 31,
(unaudited)
1996 1995
Net sales $4,155,000 $3,863,000
Cost of goods sold 3,021,000 2,363,000
Gross profit 1,134,000 1,500,000
Selling, general, administrative expense 967,000 872,000
Research & product development costs 239,000 138,000
Contract research (income) (44,000) (34,000)
Interest expense 86,000 30,000
Interest (income) (13,000) (21,000)
Total 1,235,000 985,000
Income before income taxes (101,000) 515,000
Provision for income taxes (40,000) 197,000
Net income $(61,000) $318,000
Per common share $(0.01) $0.07 Weighted average number of shares outstanding 4,474,000 4,468,000 CONTACT: Hi-Tech Pharmacal, Amityville David Seltzer David Seltzer, born 1940 into a conservative Jewish[1] family in Highland Park, Illinois, is an American screenwriter, producer, and director who is perhaps best known for having written The Omen. (COO), 516/789-8228, fax 516/789-8429 |
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