Lifecore Reports Second Quarter 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 revenue of $8,717,000 for the second fiscal quarter ended December December: see month. 31, 2000, an increase of 2 percent from the $8,527,000 recorded for the second quarter of a year ago. For the six-month period, revenue increased 6 percent to $16,613,000 compared with $15,667,000 from the period of a year ago. Year-over-year revenue growth was adversely affected by the termination of an 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. product domestic distribution agreement during first quarter. The Company reported a consolidated second-quarter loss of $561,000, or $.04 per share, compared with income of $388,000, or $.03 per share, during the period of a year ago. The six-month period showed a loss of $1,167,000, or $.09 per share, compared to income of $502,000, or $.04 per share, for the same period of a year ago. The loss continues to reflect a previously announced reduction in hyaluronan Hyaluronan (also called hyaluronic acid or hyaluronate) is a non-sulfated glycosaminoglycan distributed widely throughout connective, epithelial, and neural tissues. manufacturing associated with the regulatory delay in marketing the Company's 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. reduction product, GYNECARE INTERGEL Intergel™ Lubricoat® Surgery A ferric hyaluronate gel intended to prevent or reduce postsurgical adhesion formation. See Adhesions. (a) Adhesion Prevention Solution, in the U.S. Despite the earnings impact of the protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. regulatory delay 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 pleased with the increase in our cash position as we continue to focus on cash-flow management during this challenging chapter in our business development." The Company estimates the impact of unused capacity costs associated with reduced hyaluronan manufacturing will continue to result in approximately a $0.04 to $0.09 per share loss in the third and fourth fiscal quarters. Hyaluronan Division revenue increased 12 percent to $3,800,000 compared to $3,407,000 from the period of a year ago. For the six-month period, sales increased 16 percent to $7,215,000 compared to $6,240,000 from the period of a year ago. Increased revenue is primarily due to improved 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 and contract aseptic aseptic /asep·tic/ (-tik) free from infection or septic material. a·sep·tic adj. Of, relating to, or characterized by asepsis. sales activity. 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 $44,000 for the second quarter compared to operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $569,000 for the same period of a year ago. Similarly, a loss of $43,000 was reported for the six-month period compared with income of $874,000 for the period of a year ago. Oral Restorative Division revenue decreased 4 percent to $4,917,000 from the $5,120,000 reported for the same period of a year ago. Six-month revenue was essentially unchanged at $9,398,000 compared to $9,427,000 for the same period of a year ago. The comparative decline in revenue for the current periods is due to the previously disclosed termination of the domestic distribution contract for LifeCell LifeCell is a biotechnology company that develops and sells tissue grafts and blood cell preservation products. In recent years, LifeCell's sales have grown at an average of 41% per year and profits up to 72% annually, due in part to rising sales of their human tissue product Corporation's AlloDerm(R) Acellular acellular /acel·lu·lar/ (a-sel´u-ler) not cellular in structure. a·cel·lu·lar adj. 1. Containing no cells; not made of cells. 2. Devoid of cells; noncellular. Dermal Graft dermal graft n. A skin graft made with a thin split-thickness graft of dermis. product line. The Oral Restorative Division reported a second quarter loss of $322,000 versus income of $50,000 for the same quarter of a year ago. A loss of $722,000 was recorded for the current six-month period compared to income of $91,000 for the same period last year. The decline was primarily due to increased expenses associated with new product development, introduction, and marketing expenses as well as geographic territory expansion. With respect to new product development milestones, Lifecore has requested that the Office of Device Evaluation's Ombudsman ombudsman (äm`bədzmən) [Swed.,=agent or representative], public official appointed to deal with individual complaints against government acts. conduct a formal dispute resolution of the outstanding scientific issues regarding the safety and efficacy of GYNECARE INTERGEL(a) Adhesion Prevention Solution as provided for under the auspices aus·pi·ces 1 n. Plural of auspex. auspices Noun, pl under the auspices of with the support and approval of [Latin auspicium augury from birds] Noun of 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. Modernization modernization Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family, Act of 1997("FDAMA FDAMA Food and Drug Administration Modernization Act "). Under certain circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or FDAMA allows for a PMA PMA (papillary-marginal-attached), n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation. PMA Progressive muscular atrophy Sponsor to present disputed scientific issues to an independent Medical Devices Dispute Resolution Panel ("MDDRP"). That panel consists of three standing medical experts, three ad hoc For this purpose. Meaning "to this" in Latin, it refers to dealing with special situations as they occur rather than functions that are repeated on a regular basis. See ad hoc query and ad hoc mode. experts from the technical field of dispute, and both a non-voting non-voting adj non-voting shares → azioni fpl senza diritto di voto industry and consumer representative. 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 or regulatory progress with the adhesion prevention product. Because of numerous risks and uncertainties in Lifecore's business activity, actual results may differ materially from those implied. 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 manufactures medical devices for use in various surgical markets and provides specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. contract aseptic manufacturing services. 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.streetfusion.com. The live webcast will begin at 3:45 PM, Central Daylight Time on Tuesday Tuesday: see week. , January January: see month. 16, 2001. The webcast and telephone replay will begin shortly after the completion of the live call and will be available through Tuesday, January 30, 2001. To access the telephone replay call (719) 457-0820. (a) Registered product of ETHICON Ethicon can refer to two distinct subsidiares of Johnson & Johnson:
Lifecore Biomedical, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
------------------------ --------------------------
2000 1999 2000 1999
----------- ----------- ------------ ------------
Net sales $8,717,000 $8,527,000 $16,613,000 $15,667,000
Cost of
goods sold 4,708,000 3,916,000 8,876,000 6,879,000
----------- ----------- ------------ ------------
Gross profit 4,009,000 4,611,000 7,737,000 8,788,000
Operating expenses
Research and
development 952,000 942,000 1,894,000 2,012,000
Marketing and
sales 2,279,000 2,111,000 4,362,000 3,940,000
General and
administrative 1,144,000 939,000 2,246,000 1,871,000
----------- ----------- ------------ ------------
4,375,000 3,992,000 8,502,000 7,823,000
----------- ----------- ------------ ------------
Operating income (366,000) 619,000 (765,000) 965,000
Other income (expense)
Interest income 65,000 8,000 128,000 23,000
Interest expense (234,000) (239,000) (450,000) (466,000)
Other (26,000) - (80,000) (20,000)
----------- ----------- ------------ ------------
(195,000) (231,000) (402,000) (463,000)
----------- ----------- ------------ ------------
Net income $(561,000) $388,000 $(1,167,000) $502,000
----------- ----------- ------------ ------------
Net income per share
Basic $(0.04) $0.03 $(0.09) $0.04
----------- ----------- ------------ ------------
Diluted $(0.04) $0.03 $(0.09) $0.04
----------- ----------- ------------ ------------
Weighted average shares outstanding
Basic 12,622,249 12,424,252 12,616,874 12,421,042
----------- ----------- ------------ ------------
Diluted 12,622,249 12,775,079 12,616,874 12,674,288
----------- ----------- ------------ ------------
Condensed Consolidated Balance Sheets
December 31, June 30,
2000 2000
-------------- ---------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,245,000 $1,101,000
Accounts receivable 6,322,000 5,296,000
Inventories 9,996,000 12,290,000
Prepaid expense 760,000 733,000
-------------- ---------------
Total current assets 18,323,000 19,420,000
PROPERTY, PLANT AND EQUIPMENT, NET 29,450,000 30,352,000
OTHER ASSETS 15,681,000 16,016,000
-------------- ---------------
$63,454,000 $65,788,000
-------------- ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $2,716,000 $3,890,000
Long-term obligations 6,413,000 6,477,000
Shareholders' equity 54,325,000 55,421,000
-------------- ---------------
$63,454,000 $65,788,000
-------------- ---------------
Lifecore Biomedical, Inc.
Divisional Statements of Operations
Three Months Ended December 31,
(Unaudited)
Hyaluronate Division Oral Restorative Division
------------------------ --------------------------
2000 1999 2000 1999
------------- ---------- ------------ -------------
Net sales $3,800,000 $3,407,000 $4,917,000 $5,120,000
Cost of goods sold 2,665,000 1,664,000 2,043,000 2,252,000
------------- ---------- ------------ -------------
Gross profit 1,135,000 1,743,000 2,874,000 2,868,000
Operating expenses
Research and
development 696,000 773,000 256,000 169,000
Marketing and
sales 54,000 34,000 2,225,000 2,077,000
General and
administrative 429,000 367,000 715,000 572,000
------------- ---------- ------------ -------------
1,179,000 1,174,000 3,196,000 2,818,000
------------- ---------- ------------ -------------
Operating income $(44,000) $569,000 $(322,000) $50,000
============= ========== ============ =============
Lifecore Biomedical, Inc.
Divisional Statements of Operations
Three Months Ended December 31,
(Unaudited)
Consolidated
---------------------------------
2000 1999
---------------- ----------------
Net sales $8,717,000 $8,527,000
Cost of goods sold 4,708,000 3,916,000
---------------- ----------------
Gross profit 4,009,000 4,611,000
Operating expenses
Research and development 952,000 942,000
Marketing and sales 2,279,000 2,111,000
General and administrative 1,144,000 939,000
---------------- ----------------
4,375,000 3,992,000
---------------- ----------------
Operating income $(366,000) $619,000
================ ================
Lifecore Biomedical, Inc.
Divisional Statements of Operations
Six Months Ended December 31,
(Unaudited)
Hyaluronate Division Oral Restorative Division
------------------------ --------------------------
2000 1999 2000 1999
------------- ---------- ------------ -------------
Net sales $7,215,000 $6,240,000 $9,398,000 $9,427,000
Cost of goods sold 4,934,000 2,882,000 3,942,000 3,997,000
------------- ---------- ------------ -------------
Gross profit 2,281,000 3,358,000 5,456,000 5,430,000
Operating expenses
Research and
development 1,395,000 1,689,000 499,000 323,000
Marketing and sales 96,000 75,000 4,266,000 3,865,000
General and
administrative 833,000 720,000 1,413,000 1,151,000
------------- ---------- ------------ -------------
2,324,000 2,484,000 6,178,000 5,339,000
------------- ---------- ------------ -------------
Operating income
(loss) $(43,000) $874,000 $(722,000) $91,000
============= ========== ============ =============
Lifecore Biomedical, Inc.
Divisional Statements of Operations
Six Months Ended December 31,
(Unaudited)
Consolidated
---------------------------------
2000 1999
---------------- ----------------
Net sales $ 16,613,000 $ 15,667,000
Cost of goods sold 8,876,000 6,879,000
---------------- ----------------
Gross profit 7,737,000 8,788,000
Operating expenses
Research and development 1,894,000 2,012,000
Marketing and sales 4,362,000 3,940,000
General and administrative 2,246,000 1,871,000
-------------- ----------------
8,502,000 7,823,000
---------------- ----------------
Operating income (loss) $ (765,000) $ 965,000
================ ================
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