Lannett Company, Inc. (NYSE AMEX:LCI) today reported financial results for the fiscal 2012 second quarter and six months ended December 31, 2011.
For the second quarter of fiscal 2012, net sales were $27.7 million and net income attributable to Lannett Company was $609,000, or $0.02 per diluted share. The fiscal 2012 second quarter results were negatively impacted by a $945,000 reduction in sales, related to the recently enacted federal Patient Protection and Affordable Care Act (PPACA). For the second quarter of the prior year, net sales were $30.0 million and net income attributable to Lannett Company was $2.4 million, or $0.09 per diluted share. Last year’s fiscal second quarter results benefited from sales of OB Natal ® One Tablets, a product the company no longer markets, a reversal of royalty expense related to this product and certain non-operating items, which totaled approximately $0.03 per diluted share.
“Recently approved products were the key drivers for our solid fiscal 2012 second quarter financial performance,” said Arthur Bedrosian, president and chief executive officer of Lannett. “Without the impact of the PPACA, net sales, gross profit and operating income were comparable to our fiscal 2012 first quarter results. Our momentum has continued into January 2012 with two additional product approvals, bringing to nine the total number of approvals we have received in the last seven months. This adds to our belief that the second half of our fiscal year will show further improvement.”
For the fiscal 2012 second quarter, gross profit was $7.4 million compared with $8.4 million for the same period in the prior year. Research and development (R&D) expenses were $2.5 million compared with $1.7 million in the fiscal 2011 second quarter. Selling, general and administrative (SG&A) expenses were $4.4 million compared with $2.9 million in the same quarter of the prior year. Operating income was $495,000 compared with $3.8 million for the second quarter of fiscal 2011.
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