This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Obagi Medical Products Reports Third Quarter 2012 Earnings; Company Provides Update To Key Initiatives

Obagi Medical Products, Inc. (NASDAQ: OMPI), a leader in topical aesthetic and therapeutic skin health systems, today reported financial results for the third quarter and nine months ended September 30, 2012.

For the third quarter of 2012, net sales rose to $29.1 million from $28.1 million for the third quarter of 2011, benefiting from higher license fees and international sales. The Company also continued to see progress from its re-introduction of hydroquinone products into Texas, which commenced in May 2012.

Net income for the third quarter of 2012 was $3.0 million, or $0.16 per diluted share, and included approximately $1.7 million (or an impact of $0.06 per diluted share) of pre-tax charges for the development of the Company’s e-commerce and other growth initiatives, as previously announced. This compared with net income of $4.4 million, or $0.24 per diluted share, a year ago.

Operating expenses for the third quarter of 2012 were $18.2 million, compared with $15.6 million for the same period last year, primarily due to the investments in e-commerce and other growth initiatives.

Gross margin for the third quarter of 2012 was 79.8%, compared with 79.9% a year ago.

Additional developments of the third quarter and to date included the following:
  • Purchased, in the open market, 1.5 million shares of the Company’s common stock for $19.8 million, reducing the total shares outstanding by 8% to 17.4 million. This was completed under an October 2010 Board-authorized repurchase program as amended in March 2012. There is approximately $10.2 million of remaining capacity for future repurchases in the current authorization.
  • During October, entered into a settlement with its insurers related to the reimbursement of legal and other related fees in connection with the Zein Obagi litigation. The settlement was for $14.0 million and the Company’s portion was $8.4 million as the matter was handled on a contingency-fee basis. The $8.4 million benefit will be recorded during the fourth quarter within the operating expense section of the income statement.
  • Amended its bylaws to adopt a majority vote requirement in the uncontested election of directors, consistent with other recent company adoptions and ISS data.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,324.39 -26.99 -0.17%
S&P 500 1,950.02 +1.16 0.06%
NASDAQ 4,737.6470 -12.3320 -0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs