Hi-Tech Pharmacal reports sales increase of 12% for third quarter ended Jan. 31, 1997.AMITYVILLE, N.Y.--(BUSINESS WIRE)--March 17, 1997--Hi-Tech Pharmacal Co. 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 :HITK) reported a sales increase of 12% to $5,753,000 vs. $5,045,000 for the same period last year. Branded products showed the strongest gain at 57%. The company reported net income of $255,000 or $.06 per share vs. $558,000 or $.12 per share for the same period last year. The company attributed the lower earnings to the costs incurred in operating its Steri-med Division, increased R&D and selling expenditures. In commenting on the earnings, 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. , stated, "While we still face a very tough competitive market for generic products, we are pleased with our overall development. Our Health Care Products Division showed a strong increase of 57% to $1,300,000 for the quarter. We continue our successful strategy of implementing our introductions of new products geared to the diabetic patient. We have achieved excellent distribution of these new items to such customers as Walmart and Kmart, and with the addition of our sugar substitute, DiabetiSweet, we are now securing distribution in food stores such as Vons, Ralphs Grocery and Giant Eagle." Seltzer continued, "While our Steri-Med Division continues to have a negative impact on current operations, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future with our choice mix of products in the pipeline of our sterile facility. We have filed our second Albuterol Sulfate albuterol sulfate (salbutamol sulfate) AccuNeb, Asmol (CA), Gen-Salbutamol (CA), Novo-Salmol (CA), Proventil HFA, Ventolin HFA, Vospire-ER Pharmacologic class: Sympathomimetic (beta2-adrenergic agonist) Solution ANDA ANDA abbr. abbreviated new drug application and will continue to file such niche products. We are optimistic that an approval 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. for these products would significantly effect our operating results in this facility." 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 sterile ophthalmic and otic products as well as providing sterile manufacturing contract services. The company 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 and Steri-Optics through its Steri-Med Division. Forward-looking statements (statements which are not historical facts) in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions 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. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the company's filings with the Securities and Exchange Commission, copies of which are available from the company. -0-
HI-TECH PHARMACAL CO., INC.
Three months ended Nine months ended
Jan. 31, Jan. 31,
1997 1996 1997 1996
Net sales $ 5,753,000 5,045,000 15,184,000 14,345,000
Cost of goods
sold 3,340,000 2,968,000 10,112,000 8,403,000
Gross profit 2,413,000 2,077,000 5,072,000 5,942,000
Selling, general
and administrative
expense 1,574,000 1,142,000 3,811,000 3,208,000
Research and
product
development
costs 338,000 149,000 819,000 445,000
Contract research
income 0 (130,000) (107,000) (243,000)
Interest expense 94,000 7,000 248,000 61,000
Interest income (17,000) (14,000) (38,000) (54,000)
Total 1,989,000 1,154,000 4,733,000 3,417,000
Income before
income taxes 424,000 923,000 339,000 2,525,000
Provision for
income taxes 169,000 365,000 135,000 997,000
Net income 255,000 558,000 204,000 1,528,000
Net income per
common share $ 0.06 0.12 0.04 0.34
Weighted average
number of shares
outstanding 4,541,000 4,607,000 4,586,000 4,546,000
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 |
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