LANNETT REPORTS IMPROVED RESULTS FOR FISCAL 2012 FIRST QUARTER
Philadelphia, PA – November 3, 2011 – Lannett Company, Inc. (NYSE AMEX: LCI) today reported increased sales and income for the fiscal 2012 first quarter ended September 30, 2011.
Net sales rose to $28.9 million from $25.4 million for the first quarter of fiscal 2011. Gross profit increased to $8.6 million from $5.9 million for the same period in the prior year. Research and development expenses were $2.4 million, compared with $2.0 million in the fiscal 2011 first quarter. Selling, general and administrative expenses were $4.7 million, compared with $4.6 million in the same quarter of the prior year. Operating income was $1.4 million versus an operating loss of $739,000 for the first quarter of fiscal 2011. Net income attributable to Lannett Company, which included realized losses on investments of $173,000 (pre-tax) and unrealized losses on investments of $827,000 (pre-tax), rose to $206,000, or $0.01 per diluted share. This compares to a net loss attributable to Lannett Company of $404,000, or $0.02 per share, for the prior year first quarter.
“Our fiscal 2012 first quarter revenues, gross profit and net income all significantly improved over the previous quarter, as well as the prior year first quarter,” said Arthur Bedrosian, president and chief executive officer of Lannett. “Higher sales of Levothyroxine and certain pain management products were the key drivers for the solid performance. Moreover, our bottom line results would have been even better but for the losses on investments recorded during the period. “We are off to a solid start and continue to expect the six products approved since June 23, 2011, along with our 12 additional product applications pending at the FDA, to generate positive momentum for the balance of fiscal 2012,” Bedrosian added.
Conference Call Information and Forward-Looking Statements Later today, the company will host a conference call at 4:30 p.m. ET to review its results of operations for the fiscal 2012 first quarter ended September 30, 2011. The conference call will be available to interested parties by dialing 800-447-0521 from the U.S. or Canada, or 847-413-3238 from international locations, passcode 31058743. The conference call will also be available through a live audio Internet broadcast at www.lannett.com. The call will be archived and accessible at this site for at least three months.
Discussion during the conference call may include forward-looking statements regarding such topics as, but not limited to, the company’s financial status and performance and regulatory and operational developments, and any comments the company may make about its future plans or prospects in response to questions from participants on the conference call.
About Lannett Company, Inc.:
Lannett Company, founded in 1942, develops, manufactures, packages, markets and distributes generic pharmaceutical products for a wide range of indications. For more information, visit the company’s website at www.lannett.com.
This news release contains certain statements of a forward-looking nature relating to future events or future business performance. Any such statements, including, but not limited to, the expected product approvals, the successful commercialization of recently approved products and products applications pending at the FDA, whether expressed or implied, are subject to risks and uncertainties which can cause actual results to differ materially from those currently anticipated due to a number of factors which include, but are not limited to, the difficulty in predicting the timing or outcome of FDA or other regulatory approvals or actions, the ability to successfully commercialize products upon approval, Lannett’s estimated or anticipated future financial results, future inventory levels, future competition or pricing, future levels of operating expenses, product development efforts or performance, and other risk factors discussed in the company’s Form 10-K and other documents filed with the Securities and Exchange Commission from time to time. These forward-looking statements represent the company's judgment as of the date of this news release. The company disclaims any intent or obligation to update these forward-looking statements.