NUCRYST announces 2009 first quarter financial results
06 Maggio 2009 - 1:00PM
PR Newswire (US)
PRINCETON, NJ, May 6 /PRNewswire-FirstCall/ -- NUCRYST
Pharmaceuticals Corp., a developer and manufacturer of medical
products that fight infection and inflammation, today announced its
financial results for the first quarter of 2009. For the quarter
ended March 31, 2009, NUCRYST reported a net loss of $1.1 million,
or $0.06 cents per share, on revenues of $4.1 million. This
compares to a net loss of $2.2 million, or $0.12 cents per share,
on revenues of $5.2 million in the first quarter of 2008. At March
31, 2009, NUCRYST had $8.4 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. "With the return
of capital to our shareholders in the first quarter of 2009, we are
taking the necessary steps to reduce our cost structure to an
appropriate level," said David B. Holtz, Interim President and
Chief Executive Officer, and Chief Financial Officer of NUCRYST.
"We remain focused on driving the Company towards a sustainable
level of profitability while continuing to explore strategic
alternatives for the business." First quarter financial analysis
NUCRYST's total revenue which consists of wound care product
revenues less the manufacturing cost rebate for the first quarter
of 2009 decreased to $4.1 million compared to $5.2 million in the
first quarter of 2008. The decline was due to lower product
shipments in the first quarter of 2009 and lower royalty revenues
as a result of lower US dollar sales of Acticoat(TM) 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 46% in the first quarter of
2009, compared to 21% in the first quarter of 2008. The improvement
is primarily the result of cost reductions achieved through
manufacturing efficiency programs NUCRYST initiated late in 2007.
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 timing of product shipments to
Smith & Nephew and when Smith & Nephew sells product to its
customers. Research and development spending in the first quarter
of 2009 totaled $0.8 million compared to $1.5 million in first
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 first quarter of
2009 totaled $2.6 million compared to $2.5 million in the first
quarter of 2008 as severance costs and other administrative
transition items offset costs reductions achieved in the quarter
through staff reductions and lower facility-related costs. Other
income and expenses for the first quarter of 2009 included foreign
exchange gains of $0.4 million compared to foreign exchange gains
of $0.6 million in the first quarter of 2008. The changes in the
U.S. dollar and Canadian dollar exchange rate 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
1-800-814-4861. To listen to the call live on the Internet, please
go to http://www.nucryst.com/web_casts.htm. (Financial Tables to
Follow) 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 first
quarter results will be available in our Quarterly Report on Form
10-Q for the quarter ended March 31, 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, 2007 and in our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2009, 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. NUCRYST PHARMACEUTICALS CORP. Financial Highlights
(unaudited) (thousands of U.S. dollars except share and per share
data)
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Condensed Consolidated Three Months Ended March 31 Statements of
Operations ---------------------------- 2009 2008
-------------------------------------------
---------------------------- Revenue $ 4,149 $ 5,189 --------------
------------- Operating expenses: Cost of goods sold 2,233 4,100
Research and development 749 1,487 General and administrative 2,628
2,488 -------------- ------------- Total operating expenses 5,610
8,075 -------------- ------------- Loss from operations (1,461)
(2,886) Other income/(expenses) 385 708 --------------
------------- Net pre-tax income/(loss) (1,076) (2,178) Income tax
expense - 2 -------------- ------------- --------------
------------- Net income/(loss) $ (1,076) $ (2,180) --------------
------------- -------------- ------------- Basic and diluted net
loss per common share $ (0.06) $ (0.12) --------------
------------- -------------- ------------- Dilutive weighted
average common shares outstanding 18,321,864 18,370,092
-------------- ------------- -------------- -------------
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Additional Revenue and Gross Three Months Ended March 31 Margin
Details ---------------------------- 2009 2008
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Revenue Wound care product revenue $ 5,274 $ 6,314 Manufacturing
cost rebate (1,125) (1,125) -------------- ------------- Total
revenue $ 4,149 $ 5,189 Cost of goods sold 2,233 4,100 Gross margin
$ 1,916 $ 1,089 Gross margin % of total revenue 46% 21%
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Selected Consolidated Balance Sheet March 31 December 31 Data 2009
2008
-------------------------------------------------------------------------
Cash and cash equivalents $ 8,412 $ 23,388 Current assets 16,150
31,751 Total assets 25,451 41,800 Current liabilities 2,973 2,949
Non-current liabilities 459 495 Shareholders' equity 22,019 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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