NUCRYST announces 2009 second quarter financial results
August 05 2009 - 7:00AM
PR Newswire (US)
PRINCETON, NJ, Aug. 5 /PRNewswire-FirstCall/ -- NUCRYST
Pharmaceuticals Corp., a developer and manufacturer of medical
products that fight infection and inflammation, today announced its
financial results for the second quarter of 2009. For the quarter
ended June 30, 2009, NUCRYST reported a net loss of $0.4 million,
or $0.02 cents per share, on revenues of $4.9 million. This
compares to a net loss of $1.7 million, or $0.09 cents per share,
on revenues of $4.7 million in the second quarter of 2008. At June
30, 2009, NUCRYST had $11.8 million in cash and cash equivalents,
compared to $23.4 million at December 31, 2008. In the first
quarter of 2009, NUCRYST completed a $14.7 million, or $0.80 per
share, cash distribution to NUCRYST shareholders. "We are pleased
with the progress we are making in driving the Company towards
profitability," said David B. Holtz, Interim President and Chief
Executive Officer, and Chief Financial Officer of NUCRYST. "We
remain focused on managing the Company with a lower cost structure
while continuing to explore longer term strategic alternatives for
the business." David McDowell, NUCRYST's Vice President,
Operations, added, "We are fully prepared to support Smith Nephew
as they begin the US market launch of the Acticoat(TM) Flex product
line." Smith Nephew and NUCRYST announced last week that Smith
Nephew received FDA clearance for the new Acticoat(TM) Flex product
line. Second quarter financial analysis NUCRYST's total revenue for
the second quarter of 2009, which consists of wound care product
revenues less the manufacturing cost rebate, increased to $4.9
million compared to $4.7 million in the second quarter of 2008. The
increase was due to a higher level of product shipments in the
current quarter which was partially offset by slightly lower
royalty revenues on Acticoat(TM) sales reported by Smith Nephew
plc. Smith Nephew's reported Acticoat(TM) sales were negatively
impacted by the strengthening U.S. dollar. Gross margin on product
revenues was 43% in the second quarter of 2009, compared to 42% in
the second quarter of 2008. The improvement was primarily due to
reductions in per unit manufacturing costs which were partially
offset by a slight decrease in manufacturing prices charged to
Smith Nephew. NUCRYST recognizes manufacturing revenue when NUCRYST
ships product to Smith Nephew and recognizes royalty income when
Smith Nephew sells Acticoat(TM) products to its customers.
Consequently, NUCRYST's gross margin percent may vary from period
to period due to differences in the timing of product shipments to
Smith Nephew and the sale of that product by Smith Nephew to its
customers. Research and development spending in the second quarter
of 2009 totaled $0.6 million compared to $1.5 million in second
quarter of 2008. NUCRYST completed the closure of its Wakefield,
Massachusetts research operations in the fourth quarter of 2008.
NUCRYST has also eliminated spending on several development
programs until commercialization partners are secured for these
programs. General and administrative costs in the second quarter of
2009 totaled $1.4 million compared to $2.2 million in the second
quarter of 2008. The decrease was primarily due to cost reductions
achieved following the transfer of the Company's U.S. headquarters
to Princeton, New Jersey and a reduction in administrative staff.
The decline in the Canadian dollar relative to the U.S. dollar also
contributed to overall decrease in reported costs. Other income and
expenses, which includes foreign exchange gains and losses and
interest income, was a net loss of $0.6 million for the second
quarter of 2009 as compared to a net loss of $0.1 million in the
second quarter of 2009. Changes in the U.S. dollar and Canadian
dollar exchange rate during the second quarter of 2009 resulted in
unrealized currency gains on our U.S. dollar working capital
amounts held by our Canadian operations. All of our revenues from
Smith Nephew are received in U.S. dollars. A conference call
regarding NUCRYST's 2009 first quarter results is set for today at
9 a.m. EST. To participate, please call the toll-free number
1-800-731-5774. To listen to the call live on the Internet, please
go to http://www.nucryst.com/web_casts.htm. (Financial Table Page
Below) About NUCRYST Pharmaceuticals Corp. NUCRYST Pharmaceuticals
Corp. (NASDAQ: NCST; TSX: NCS) develops, manufactures and
commercializes medical products that fight infection and
inflammation using SILCRYST(TM), its patented atomically disordered
nanocrystalline silver technology. NUCRYST licensed world-wide
rights for SILCRYST(TM) wound care coating products to Smith Nephew
plc, which markets these products in over 30 countries under their
Acticoat(TM) trademark. NUCRYST has developed its proprietary
nanocrystalline silver in a powder form, referred to as NPI 32101,
for use in medical devices and as an active pharmaceutical
ingredient. A more detailed discussion of NUCRYST's 2009 second
quarter results will be available in our Quarterly Report on Form
10-Q for the quarter ended June 30, 2009 which will be available at
http://www.sec.gov/ and http://www.sedar.com/ when filed. NUCRYST
filings are also available at
http://www.nucryst.com/Regulatory_Filings.htm. All amounts in U.S.
dollars SILCRYST(TM) is a trademark of NUCRYST Pharmaceuticals
Corp. Acticoat(TM) is a trademark of Smith & Nephew plc The
financial results in this news release are unaudited, and are not a
complete disclosure of our quarterly or results. This news release
contains forward-looking statements within the meaning of
securities legislation in the United States and Canada
(collectively "forward-looking statements"). Forward-looking
statements in this news release include, but are not limited to,
statements about: our strategy, future operations, prospects and
plans of management and our ability to achieve operating
efficiencies and cost reductions. With respect to the
forward-looking statements contained in this news release, readers
are cautioned that numerous risks, uncertainties and other factors
could cause our actual results to differ materially from those
indicated in these statements including, but not limited to: future
shareholder actions with respect to our capitalization and
strategic direction; the performance of the stock markets
generally; our ability to satisfy regulatory and stock exchange
standards and requirements to maintain our exchange listings; the
uncertainty of our future operating results, which are likely to
fluctuate; our reliance on and ability to maintain our
collaboration with Smith Nephew; our reliance on sales of
Acticoat(TM) products with our SILCRYST(TM) coatings by Smith
Nephew; our ability to achieve and sustain cost savings and
operating efficiencies sufficient to substantially offset the
manufacturing cost rebate we have agreed to pay Smith Nephew; our
ability to retain skilled and experienced personnel; the
availability, timing or likelihood of regulatory filings and
approvals for our new products and our ability to maintain
regulatory compliance with respect to our existing products; our
ability to establish successful commercialization programs, through
corporate collaborations or otherwise, for our NPI 32101 barrier
cream and other development programs; the impact of delays and
challenges with new product introductions, the impact of new
product introductions on the sales of existing products; changes in
currency exchange rates; changes in regulation or tax laws
applicable to us; changes in general economic and capital market
conditions; other risks and uncertainties that have not been
identified at this time; and management's response to these
factors. Although we have attempted to identify the important
risks, uncertainties and other factors that could cause actual
results or events to differ materially from those expressed or
implied in the forward-looking statements in this release, there
may be other factors that cause actual results or events to differ
from those expressed or implied in forward looking statements. For
a more thorough discussion of the risks associated with our
business, see the "Risk Factors" section in our Annual Report on
Form 10-K for the year ended December 31, 2008 and in our Quarterly
Report on Form 10-Q for the quarter ended June 30, 2009, once filed
with the U.S. Securities and Exchange Commission on EDGAR at
http://www.sec.gov/ and with securities authorities in Canada on
SEDAR at http://www.sedar.com/. All forward-looking statements are
expressly qualified in their entirety by this cautionary statement
and NUCRYST disclaims any intention or obligation to revise or
update any forward-looking statements whether as a result of new
information, future developments or otherwise after the date
hereof. Condensed Consolidated Statements of Operations
----------------------------------------------- Three Months Six
Months Ended June 30 Ended June 30 2009 2008 2009 2008 -----------
----------- ----------- ----------- Revenue $ 4,942 $ 4,708 $ 9,091
$ 9,897 ----------- ----------- ----------- ----------- Operating
expenses: Cost of goods sold 2,801 2,726 5,034 6,826 Research and
development 599 1,463 1,348 2,950 General and administrative 1,351
2,164 3,979 4,652 ----------- ----------- ----------- -----------
Total operating expenses 4,751 6,353 10,361 14,428 -----------
----------- ----------- ----------- Income/(Loss) from operations
191 (1,645) (1,270) (4,531) Other income/(expenses) (604) (71)
(219) 637 ----------- ----------- ----------- ----------- Net
pre-tax loss (413) (1,716) (1,489) (3,894) Income tax expense - - -
2 ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- Net loss $ (413) $ (1,716) $
(1,489) $ (3,896) ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- Basic and diluted
net loss per common share $ (0.02) $ (0.09) $ (0.08) $ (0.21)
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- Dilutive weighted average
common shares outstanding 18,324,458 18,374,506 18,323,168
18,372,299 ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- Selected
Consolidated Balance Sheet Data
---------------------------------------- June 30 December 31 2009
2008 ----------- ----------- Cash and cash equivalents $ 11,751 $
23,388 Current assets 19,400 31,751 Total assets 29,344 41,800
Current liabilities 5,574 2,949 Non-current liabilities 474 495
Shareholders' equity 23,296 38,356 DATASOURCE: NUCRYST
Pharmaceuticals Corp. CONTACT: David B. Holtz, Interim President
and Chief Executive Officer, Chief Financial Officer, NUCRYST
Pharmaceuticals Corp., (609) 228-8210; David Wills, Gillian
McArdle, Investor Relations, (416) 504-8464,
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