Lannett Company, Inc. (NYSE MKT: LCI) today reported financial results for the fiscal 2013 first quarter ended September 30, 2012.
For the first quarter of fiscal 2013, net sales rose 22% to $35.3 million from $28.9 million for the same quarter last year. Gross profit climbed 58% to $13.6 million from $8.6 million for the fiscal 2012 first quarter. As a percentage of net sales, gross margin was 39% compared with 30% for the fiscal first quarter of last year. Research and development (R&D) expenses were $3.8 million compared with $2.4 million in the fiscal 2012 first quarter. Selling, general and administrative (SG&A) expenses were $6.2 million, compared with $4.7 million in the same quarter of the prior year. Operating income more than doubled to $3.7 million compared with $1.4 million for the first quarter of fiscal 2012. Net income attributable to Lannett Company was $2.9 million, or $0.10 per diluted share, which included a favorable litigation settlement of $1.3 million and other non-operating items, equal to $0.03 per diluted share. This compares with net income attributable to Lannett Company for the prior year first quarter of $206,000, or $0.01 per share, which included non-operating expenses equal to $0.02 per diluted share.
“Our positive momentum continued into the fiscal 2013 first quarter, with strong net sales resulting in higher gross margin, operating income and net income compared with any of the previous four quarters,” said Arthur Bedrosian, president and chief executive officer of Lannett. “Our strong operating performance was driven by solid sales of our base business and recently approved drugs. In order to drive our future growth, we have ramped up our investment in R&D, which we anticipate will pay off handsomely in terms of expanding our product portfolio with higher revenue and higher margin products than we typically enjoy. In addition, we have expanded the product development and manufacturing capabilities of our pain management business; this will allow us, over time, to add active pharmaceutical ingredients (APIs) and final dosage forms to our portfolio.”