Anika Therapeutics Reports Record Second Quarter Revenue and Earnings
Total Revenue Grows 22%; Earnings Increase 53% to $0.26 per Share
Press Release: Anika Therapeutics, Inc. – 16 hours ago.. .
BEDFORD, Mass.--(BUSINESS WIRE)--
Anika Therapeutics, Inc. (ANIK), a leader in products for tissue protection, healing, and repair, based on hyaluronic acid (“HA”) technology, today reported financial results for the quarter ended June 30, 2012.
Revenue
For the second quarter of 2012, Anika’s total revenue increased 22% to $19.6 million, from $16.1 million in the second quarter last year. This growth was primarily driven by higher shipments of Anika’s ophthalmic products, as well as strong domestic and international sales of the company’s flagship product, Orthovisc®.
For the six-month period ended June 30, 2012, total revenue increased 22% to $34.0 million, from $27.9 million in the same period last year.
Product Gross Margin
Driven by higher production volume, product gross margin for the second quarter of 2012 increased to 57.2%, from 56.8% in the second quarter last year.
For the six-month period ended June 30, 2012, product gross margin increased to 55.4%, from 53.7% in the first six months of 2011.
Operating and Net Income
Operating income for the second quarter of 2012 increased to $6.1 million, from $3.7 million in the same period in 2011. Net income rose to $3.7 million, or $0.26 per diluted share, from $2.3 million, or $0.17 per diluted share, in the second quarter a year earlier. The company’s improved profitability was primarily driven by a combination of revenue growth, higher gross margin, and lower operating expenses. The company’s effective tax rate for the second quarter of 2012 was 38.6%, compared with 37.2% for the second quarter of 2011.
For the six-month period ended June 30, 2012, net income rose to $5.6 million, or $0.39 per diluted share, from $2.6 million, or $0.19 per diluted share, in the first six months of 2011.
Operating Expenses
Research and development expenses for the second quarter of 2012 decreased to $1.3 million, from $1.6 million in the second quarter last year. Anika continues to expect R&D expense to increase modestly in the second half of 2012 on a year-over-year basis due to the anticipated initiation of preclinical and clinical studies.
Selling, general and administrative expenses in the second quarter of 2012 decreased to $4.1 million, from $4.2 million in the second quarter of 2011. The decrease was primarily due to placing in service the remainder of the company’s Bedford manufacturing facility. Prior to the first quarter of 2012, the previously unoccupied space was expensed to SG&A.
Cash and Cash Equivalents
Anika’s cash and cash equivalents at June 30, 2012 were $37.9 million, compared with $34.0 million at March 31, 2012. The increase was primarily the result of higher profitability and collections on accounts receivable.
Management Commentary
“Anika concluded the first half of 2012 with all-time record quarterly revenue and record second-quarter earnings, while making solid progress toward key strategic goals,” said Charles H. Sherwood, Ph.D., president and chief executive officer. “Total revenue was up 22% from the second quarter last year, driven primarily by strong sales of our flagship product, Orthovisc®, both domestically and internationally and increased shipments in our Ophthalmic franchise. This growth was somewhat offset by year-over-year declines in sales of Monovisc®internationally, as well as slower sales of our products by Anika S.r.l.”
“We made solid operational progress in the second quarter,” said Sherwood. “We closed Anika’s facility in Woburn, Mass. and consolidated all of our manufacturing at our new facility in Bedford, Mass., by the end of the quarter as planned. We had a positive meeting with the FDA regarding our PMA application for Monovisc, and moved closer to starting patient enrollment in clinical trials for two key pipeline products.”
“Anika is starting the second half of 2012 with strong forward momentum,” Sherwood said. “Completing the manufacturing consolidation in Bedford allows us to strengthen our focus on our product pipeline and distribution network to drive top-line growth.”
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