Lannett Company, Inc. (NYSE AMEX: LCI) today reported financial results for the fiscal 2011 fourth quarter and full year ended June 30, 2011.
For fiscal 2011, net sales were $106.8 million compared with $125.2 million for fiscal 2010. Gross profit was $23.3 million compared with $41.3 million for the prior year. Research and development expenses decreased to $8.6 million from $11.3 million in fiscal 2010. Selling, general and administrative (SG&A) expenses declined to $15.9 million from $17.4 million in the prior year. Net loss attributable to Lannett Company was $277,000, or $0.01 per share, compared to net income attributable to Lannett Company of $7.8 million, or $0.31 per diluted share, for fiscal 2010.
For the fiscal 2011 fourth quarter, net sales were $25.5 million compared with $33.8 million for the fourth quarter of fiscal 2010. Gross profit was $3.8 million compared with $11.3 million for the same period in the prior year. Research and development expenses increased to $3.0 million from $2.1 million in the fiscal 2010 fourth quarter. SG&A expenses declined to $4.2 million from $5.2 million in the same quarter of the prior year. Net loss attributable to Lannett Company was $1.9 million, or $0.07 per share, compared to net income attributable to Lannett Company of $2.8 million, or $0.11 per diluted share, for the prior year fourth quarter.
“As expected, our financial results for both the fiscal 2011 fourth quarter and full year were impacted by price and/or volume declines on certain key products, as well as the temporary discontinuation of our Morphine Sulfate Oral Solution product and a lack of product approvals,” said Arthur Bedrosian, president and chief executive officer of Lannett. “The current fiscal year, however, is off to a strong start, with four recent product approvals, including Morphine Sulfate Oral Solution; all of which we expect to launch shortly. Moreover, we anticipate improved sales from our pain management division and have 14 product candidates pending at the FDA, several of which we believe will be approved before calendar year-end.”