Lifecore Reports Fiscal Second Quarter 2002 Financial Results.Business Editors CHASKA Chaska can refer to:
LIFECORE BIOMEDICAL bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. , 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:LCBM) today reported consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: revenue of $8,584,000 for the second fiscal quarter ended December December: see month. 31, 2001, a nominal Trifling, token, or slight; not real or substantial; in name only. Nominal capital, for example, refers to extremely small or negligible funds, the use of which in a particular business is incidental. NOMINAL. Relating to a name. decrease from the $8,717,000 recorded for the second quarter of a year ago. For the six-month period, a nominal increase was reported to $16,818,000 compared with $16,613,000 from the period of a year ago. The essentially flat year-over-year revenue performance primarily reflects reduced ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. hyaluronan Hyaluronan (also called hyaluronic acid or hyaluronate) is a non-sulfated glycosaminoglycan distributed widely throughout connective, epithelial, and neural tissues. shipments during the current second quarter. The Company reported a consolidated second-quarter loss of $2,080,000, or $0.16 per share, compared with a loss of $561,000, or $0.04 per share, during the period of a year ago. The six-month period showed a consolidated loss of $4,012,000, or $0.31 per share, compared to a loss of $1,167,000, or $0.09 per share, for the same period of a year ago. The losses are within the expectations of guidance provided previously and continue to reflect reduced hyaluronan manufacturing activity. Lifecore estimates that the impact of unused capacity costs associated with reduced hyaluronan manufacturing will begin to diminish going forward. This is expected to result in a reduced consolidated loss of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. a $0.04 to $0.09 per share in the third and fourth quarters of fiscal year 2002. Hyaluronan Division Hyaluronan Division second quarter revenue decreased 34 percent to $2,525,000 when compared to $3,800,000 for second quarter of 2001. Six-month revenue decreased 23 percent to $5,553,000, when compared to $7,215,000 for 2001. The revenue decrease was primarily due to reduced ophthalmic hyaluronan shipments and the termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. of Bausch & Lomb shipments that were still occurring in the second quarter of a year ago. The Division reported an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1,768,000 for the second quarter compared to a loss of $44,000 for the same period of a year ago. Similarly, an operating loss of $3,332,000 was reported for the six-month period compared with a loss of $43,000 for the same period of a year ago. The losses were primarily due to increased unused capacity charges resulting from continuing reduced hyaluronan manufacturing activity and increased regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. expenses. Both expenses were associated with regulatory delays in obtaining approval to market the Company's ferric ferric (fĕr`ĭk), iron in the +3 valence state. See ferrous. hyaluronan product, GYNECARE INTERGEL Intergel™ Lubricoat® Surgery A ferric hyaluronate gel intended to prevent or reduce postsurgical adhesion formation. See Adhesions. Adhesion adhesion /ad·he·sion/ (ad-he´zhun) 1. the property of remaining in close proximity. 2. the stable joining of parts to one another, which may occur abnormally. 3. Prevention Solution, in the U.S. That product was subsequently approved by 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. late in the Company's second fiscal quarter. In January January: see month. of 2002, the Division shipped its initial U.S. order of the newly approved product. That product is expected to be introduced into the U.S. market during the first calendar quarter by Lifecore's marketing and distribution partner GYNECARE, the women's healthcare division of ETHICON Ethicon can refer to two distinct subsidiares of Johnson & Johnson:
Oral Restorative re·stor·a·tive adj. 1. Of or relating to restoration. 2. Tending or having the power to restore. n. A medicine or other agent that helps to restore health, strength, or consciousness. Division Oral Restorative Division second quarter revenue increased 23 percent to a record quarterly level of $6,059,000, when compared to $4,917,000 for the period of a year ago. Six-month revenue increased 20 percent to $11,265,000 in comparison to $9,398,000 for 2001. The revenue increase was spread across most product and geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. lines and was attributed to generally increased product acceptance. The Division's operating loss decreased to $92,000 in the second quarter compared to the loss of $322,000 reported for the period of a year ago. The six-month operating loss similarly declined to $355,000 from a loss of $722,000 in the same period of a year ago. Jim Bracke, Lifecore's 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. , commented "We are particularly pleased to have stayed within our second quarter financial guidance levels despite increased expenses for the extended hyaluronan product regulatory approval and the profoundly reduced client participation in Oral Restorative Division trade shows. We look at the six-month point in the current fiscal year as a major inflection point Inflection Point An event that changes the way we think and act. -Andy Grove, Founder of Intel. Notes: For example, the fall of the Berlin Wall was an inflection point in global politics and the commercialization of the Internet was an inflection point in technology. from which we will show improved financial performance moving forward." Certain statements in this release are 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. as defined in 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. Such statements may imply continued financial improvement. Because of numerous risks and uncertainties in Lifecore's business activity, actual results may differ materially from those implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. . Investors are referred to more detailed discussions of those risks presented in the Company's reports on Forms 10-Q and 10-K. Lifecore Biomedical develops, manufactures, and markets biomaterials and medical devices for use in various surgical markets. Additional Company news and general information are available through its website at http://www.lifecore.com. Lifecore Biomedical's quarterly earnings conference call will be available online at www.lifecore.com and www.companyboardroom.com. The live webcast will begin at 3:45 PM, CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. on Tuesday Tuesday: see week. , January 15, 2002. The webcast and telephone replay will begin shortly after the completion of the live call. To access the telephone replay call (719) 457-0820. GYNECARE, INTERGEL, and ETHICON are trademarks of ETHICON, INC.
Lifecore Biomedical, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
----------------------- ------------------------
2001 2000 2001 2000
----------- ---------- ----------- -----------
Net sales $8,584,000 $8,717,000 $16,818,000 $16,613,000
Cost of goods sold 5,323,000 4,708,000 10,258,000 8,876,000
----------- ---------- ----------- -----------
Gross profit 3,261,000 4,009,000 6,560,000 7,737,000
Operating expenses
Research and
development 1,127,000 952,000 2,763,000 1,894,000
Marketing and
sales 2,691,000 2,279,000 5,135,000 4,362,000
General and
administrative 1,303,000 1,144,000 2,349,000 2,246,000
----------- ---------- ----------- -----------
5,121,000 4,375,000 10,247,000 8,502,000
----------- ---------- ----------- -----------
Operating income (1,860,000) (366,000) (3,687,000) (765,000)
Other income
(expense)
Interest income 10,000 65,000 78,000 128,000
Interest expense (223,000) (234,000) (393,000) (450,000)
Other (7,000) (26,000) (10,000) (80,000)
----------- ---------- ----------- -----------
(220,000) (195,000) (325,000) (402,000)
----------- ---------- ----------- -----------
Net income $(2,080,000) $(561,000) $(4,012,000) $(1,167,000)
----------- ---------- ----------- -----------
Net income per
share
Basic $(0.16) $(0.04) $(0.31) $(0.09)
----------- ---------- ----------- -----------
Diluted $(0.16) $(0.04) $(0.31) $(0.09)
----------- ---------- ----------- -----------
Weighted average
shares outstanding
Basic 12,785,099 12,622,249 12,766,358 12,616,874
----------- ---------- ----------- -----------
Diluted 12,785,099 12,622,249 12,766,358 12,616,874
----------- ---------- ----------- -----------
Condensed Consolidated Balance Sheets
December 31, June 30,
2001 2001
------------ ----------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $895,000 $2,310,000
Accounts receivable 6,572,000 6,923,000
Inventories 11,164,000 8,693,000
Prepaid expense 866,000 675,000
----------- -----------
Total current assets 19,497,000 18,601,000
PROPERTY, PLANT AND EQUIPMENT, NET 27,445,000 28,437,000
LONG-TERM INVENTORY 5,587,000 9,368,000
OTHER ASSETS 6,880,000 6,290,000
----------- -----------
$59,409,000 $62,696,000
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $4,367,000 $4,391,000
Long-term obligations 6,189,000 6,249,000
Shareholders' equity 48,853,000 52,056,000
----------- -----------
$59,409,000 $62,696,000
----------- -----------
Lifecore Biomedical, Inc.
Divisional Statements of Operations
Three Months Ended December 31,
(Unaudited)
Hyaluronate Division Oral Restorative Division
------------------------ -------------------------
2001 2000 2001 2000
------------------------ -------------------------
Net sales $ 2,525,000 $3,800,000 $ 6,059,000 $4,917,000
Cost of goods sold 2,926,000 2,665,000 2,397,000 2,043,000
------------------------ -------------------------
Gross profit (loss) (401,000) 1,135,000 3,662,000 2,874,000
Operating expenses
Research and
development 884,000 696,000 243,000 256,000
Marketing and
sales 67,000 54,000 2,624,000 2,225,000
General and
administrative 416,000 429,000 887,000 715,000
------------------------ -------------------------
1,367,000 1,179,000 3,754,000 3,196,000
------------------------ -------------------------
Operating income
(loss) $(1,768,000) $ (44,000) $ (92,000) $ (322,000)
======================== =========================
Consolidated
-------------------------
2001 2000
-------------------------
Net sales $ 8,584,000 $ 8,717,000
Cost of goods sold 5,323,000 4,708,000
-------------------------
Gross profit (loss) 3,261,000 4,009,000
Operating expenses
Research and
development 1,127,000 952,000
Marketing and
sales 2,691,000 2,279,000
General and
administrative 1,303,000 1,144,000
-------------------------
5,121,000 4,375,000
-------------------------
Operating income
(loss) $(1,860,000) $ (366,000)
=========================
Lifecore Biomedical, Inc.
Divisional Statements of Operations
Six Months Ended December 31,
(Unaudited)
Hyaluronate Division Oral Restorative Division
------------------------ -------------------------
2001 2000 2001 2000
------------------------ -------------------------
Net sales $ 5,553,000 $7,215,000 $11,265,000 $9,398,000
Cost of goods sold 5,623,000 4,934,000 4,635,000 3,942,000
------------------------ -------------------------
Gross profit (loss) (70,000) 2,281,000 6,630,000 5,456,000
Operating expenses
Research and
development 2,317,000 1,395,000 446,000 499,000
Marketing and
sales 129,000 96,000 5,006,000 4,266,000
General and
administrative 816,000 833,000 1,533,000 1,413,000
------------------------ -------------------------
3,262,000 2,324,000 6,985,000 6,178,000
------------------------ -------------------------
Operating income
(loss) $(3,332,000) $ (43,000) $ (355,000) $ (722,000)
======================== =========================
Consolidated
-------------------------
2001 2000
-------------------------
Net sales $16,818,000 $16,613,000
Cost of goods sold 10,258,000 8,876,000
-------------------------
Gross profit (loss) 6,560,000 7,737,000
Operating expenses
Research and
development 2,763,000 1,894,000
Marketing and
sales 5,135,000 4,362,000
General and
administrative 2,349,000 2,246,000
-------------------------
10,247,000 8,502,000
-------------------------
Operating income
(loss) $(3,687,000) $ (765,000)
=========================
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion