IMPAX Reports Second Quarter Financial Results; Quarter Highlighted by Record Revenues and Operating Results Improvement.Business & Health/Medical Editors HAYWARD Hayward, city (1990 pop. 111,498), Alameda co., W Calif.; settled 1851, inc. 1876. It is an important commercial and distribution center for farm products. Manufactures include wire, plastics, metal and paper products, textiles, machinery, and motor vehicles. , Calif.--(BUSINESS WIRE)--July 28, 2003 IMPAX Laboratories, Inc. (Nasdaq:IPXL) today reported financial results for the three months and six months ended June June: see month. 30, 2003. Revenues for the second quarter of 2003 were $14,067,000, up more than 173% compared with revenues of $5,145,000 in the prior year's second quarter, and up more than 23% over total revenues of $11,425,000 in the first quarter of 2003. The significant year-over-year increases came primarily on over-the-counter (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ) Loratadine loratadine /lor·at·a·dine/ (lah-rat´ah-den) a nonsedating antihistamine used in the treatment of allergic rhinitis, chronic idiopathic urticaria, and asthma. lor·at·a·dine n. and Pseudoephedrine Sulfate pseudoephedrine sulfate Drixoral Nasal Decongestant, Drixoral Non-Drowsy Formula Pharmacologic class: Sympathomimetic Therapeutic class: Decongestant (systemic) Pregnancy risk category C Extended Release 12-hour Tablets shipped to Schering-Plough Schering-Plough Corporation (NYSE: SGP) is a pharmaceutical company which traces its history back to 1851 when Ernst Schering founded Schering AG in Germany. Following the entry of the United States into World War II in 1941, U.S. and Wyeth during the second quarter of 2003; sales of Minocycline Hydrochloride min·o·cy·cline hydrochloriden. A broad-spectrum antibiotic derived from tetracycline. minocycline hydrochloride Capsules launched in the third quarter of 2002; higher sales of Fludrocortisone Acetate flu·dro·cor·ti·sone acetate n. A synthetic mineralocorticoid used to increase blood pressure by lowering the amount of salt the body excretes and to treat adrenocortical insufficiency resulting from Addison's disease. Tablets, introduced at the end of the first quarter of 2002; higher Lipram sales; revenue from our strategic OTC agreements; and lower product returns. The net loss for the 2003 second quarter was $2,284,000, or $(0.05) per share, compared with a net loss of $5,938,000, or $(0.13) per share, in the prior-year second quarter. The net loss narrowed due to increased sales and improved plant 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. . For the six months ended June 30, 2003, the Company reported revenues of $25,492,000 compared with $8,577,000 in the comparable period of the previous year. The net loss for the first half of 2003 was $5,497,000, or $(0.11) per share. This compares with a net loss of $11,359,000, or $(0.24) per share, for the first half of 2002. Unrestricted cash, cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments were $26.8 million at June 30, 2003, compared to $10.2 million at December December: see month. 31, 2002. The increase in the cash balance was primarily due to the May 2003 $25 million private placement. "The second quarter's results reflect the momentum we have been building in developing our products, moving them through the regulatory and legal pathways and then bringing them to market," said Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. R. Edwards, Co-Chief Executive Officer of IMPAX. "We are comfortable that we will be able to maintain this momentum going forward," Mr. Edwards continued. IMPAX has 20 applications pending at 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. , including three tentatively ten·ta·tive adj. 1. Not fully worked out, concluded, or agreed on; provisional: tentative plans. 2. Uncertain; hesitant. approved that address approximately $6.2 billion in U.S. branded product sales for the twelve months ended April 30, 2003. Fifteen of these filings were made under Paragraph IV of the Hatch-Waxman Amendments. IMPAX Laboratories, Inc. is a technology-based specialty pharmaceutical company applying its formulation formulation /for·mu·la·tion/ (for?mu-la´shun) the act or product of formulating. American Law Institute Formulation expertise and drug delivery technology to the development of controlled-release and specialty generics in addition to the development of branded products. IMPAX markets its generic products through its Global Pharmaceuticals division and intends to market its branded products through the IMPAX Pharmaceuticals division. Additionally, where strategically appropriate, IMPAX has developed marketing partnerships to fully leverage its technology platform. IMPAX Laboratories is headquartered in Hayward, and has a full range of capabilities in its Hayward and Philadelphia Philadelphia, ancient cities Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C. facilities. For more information, please visit the Company's Web site at: www.impaxlabs.com. As previously announced, the Company has scheduled a conference call to discuss this announcement beginning at 8:30 a.m. Eastern Time today. To participate in the call, a few minutes prior to the start time, please dial 888-803-7396 in the U.S. or 706-634-1052 for international callers. Those unable to participate are invited to listen to a recording of the call and Question and Answer session from 9:30 a.m. Eastern Time, July 28, 2003 through 11:59 p.m. Eastern Time, July 30, 2003, by dialing 800-642-1687 in the U.S. or 706-645-9291 for international callers, and entering reservation code 1824737. Alternatively, individuals may listen to the call by visiting the investor relations Investor relations The process by which the corporation communicates with its investors. section of the Company's Web site at www.impaxlabs.com. To listen to the live call, please go to the Web site 15 minutes prior to its start to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. , and install the necessary audio software. A recording of the call will be available for 14 days on the site beginning on July 28, 2003. "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. " statement under 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: To the extent any statements made in this news release contain information that is not historical, these statements are forward-looking in nature and express the beliefs and expectations of management. Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause IMPAX's future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such 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. . Such risks and uncertainties include, but are not limited to, IMPAX's ability to obtain sufficient capital to fund its operations, the difficulty of predicting FDA filings and approvals, consumer acceptance and demand for new pharmaceutical products, the impact of competitive products and pricing, IMPAX's ability to successfully develop and commercialize pharmaceutical products, IMPAX's reliance on key strategic alliances, the uncertainty of patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , the availability of raw materials, the regulatory environment, dependence on patent and other protection for innovative products, exposure to product liability claims, fluctuations in operating results and other risks detailed from time to time in IMPAX's filings with the Securities and Exchange Commission. Forward-looking statements speak only as to the date on which they are made, and IMPAX undertakes no obligation to update publicly or revise any forward-looking statement, regardless of whether new information becomes available, future developments occur or otherwise.
IMPAX LABORATORIES, INC.
STATEMENTS OF OPERATIONS
(dollars in thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Net sales $ 13,460 $ 5,145 $ 24,526 $ 8,577
Other revenues 607 0 966 0
Total revenues 14,067 5,145 25,492 8,577
Cost of sales 9,321 3,982 17,468 7,121
Gross margin 4,746 1,163 8,024 1,456
Research and
development 4,347 4,476 8,102 7,366
Less: Teva
payments (22) (138) (154) (304)
Research and
development, net 4,325 4,338 7,948 7,062
Selling expenses 438 646 1,006 1,304
General and
administrative
expenses 2,083 1,939 4,205 4,109
Other operating
income (expense),
net 10 21 21 (9)
Net loss from
operations (2,090) (5,739) (5,114) (11,028)
Interest income 70 167 112 402
Interest expense (264) (366) (495) (733)
Net loss $ (2,284) $ (5,938) $ (5,497) $ (11,359)
Net loss per share
(basic and
diluted) $ (0.05) $ (0.13) $ (0.11) $ (0.24)
Weighted average
common shares
outstanding 50,608,445 47,306,741 49,250,049 47,061,223
IMPAX LABORATORIES, INC.
CONDENSED BALANCE SHEET
(in thousands)
June 30, December 31,
2003 2002
(unaudited) (unaudited)
ASSETS
Cash, cash equivalents and short-term
investments $ 26,793 $ 10,219
Restricted cash (a) 10,000 10,000
Accounts receivable, net 8,584 6,524
Inventory 15,042 10,478
Property, plant and equipment, net 36,600 37,065
Goodwill and intangibles, net 28,145 28,337
Other assets 1,907 1,780
Total assets $127,071 $104,403
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 25,843 $ 23,248
Long-term debt, net of current portion 9,394 9,105
Refundable deposit (b) 22,000 22,000
Deferred revenues and other liabilities 2,737 1,486
Mandatory redeemable convertible preferred
stock 7,500 7,500
Stockholders' equity 59,597 41,064
Total liabilities and stockholders' equity $127,071 $104,403
(a) Represents cash held as collateral for the $25 million revolving
credit facility and term loan with Congress Financial.
(b) As of the date of this press release, we expect to pay the
refundable deposit to Teva in IMPAX common stock.
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