Albany Molecular Research, Inc.【AMRI】株式ニュース

AMRI Announces Third Quarter Results; Continues Double-Digit Growth in Contract Revenue and EPS

Albany, NY (November 6, 2007) — AMRI (NASDAQ: AMRI) today announced results for the third quarter ended September 30, 2007. For the quarter, the company reported growth in total contract revenue and net income. Growth was driven by continued strong performance in the company’s Development/Small Scale business component.

Highlights for the quarter include:

* An increase in total revenue, including 10% growth in contract revenue
* Double-digit year-over-year contract revenue growth in Development/Small Scale business segments
* Operating income increased 173%, from $0.8 million in Q3 2006 to $2.1 million in Q3 2007
* Net income of $2.0 million, a 41% increase year-over-year
* Year-over-year improvement in contract services gross margin
* The opening of a new R&D facility in Hyderabad, India
* A four-year research collaboration with the Cystic Fibrosis Foundation worth up to $23.7 million, aimed at identifying novel treatments that address the core defect in cystic fibrosis
* The hiring of Steve Jennings, a 30-year veteran of both the pharmaceutical and medical device industries, to lead AMRI’s global sales and business development efforts.

Third Quarter Results

Total revenue for the third quarter of 2007 was $47.6 million, an increase of 8% compared to total revenue of $44.2 million in the third quarter of 2006.

Total contract revenue in the third quarter of 2007 was $41.6 million, an increase of 10% compared to total contract revenue of $37.9 million in the third quarter of 2006. Total contract revenue encompasses revenue from AMRI’s Discovery Services, Development/Small Scale Manufacturing, and Large Scale Manufacturing business components.

* Development/Small Scale Manufacturing - contract revenue for the third quarter was $13.1 million, an increase of 37% compared to $9.6 million in the third quarter of 2006. The increase results from continued strong demand for pharmaceutical development services.
* Discovery Services - contract revenue for the third quarter of 2007 was $10.5 million, an increase of 5% from $10 million in the third quarter of 2006.
* Large Scale Manufacturing - contract revenue for the third quarter of 2007 was $17.9 million, a decrease of 2% compared to $18.2 million in the third quarter of 2006.

Recurring royalties from Allegra® in the third quarter of 2007 were $6.0 million, a decrease of 6% compared to recurring royalties of $6.3 million in 2006. AMRI earns royalties from worldwide sales of the non-sedating antihistamine Allegra® (Telfast® outside the United States), as well as the authorized generic, for patents relating to the active ingredient in Allegra.

Net income in the third quarter of 2007 was $2.0 million, or $0.06 per diluted share, compared to net income of $1.4 million, or $0.04 per diluted share, in the third quarter of 2006.

Year-to-Date

Total revenue for the first nine-months of 2007 was $145.3 million, an increase of 9% compared to total revenue of $133.2 million during the same period in 2006.

Total contract and milestone revenue for the first nine-months of 2007 was $124.3 million, an increase of 11% compared to total contract and milestone revenue of $112.5 million during the comparable period in 2006.

Total contract revenue for the first nine-months of 2007 was $122.7 million, an increase of 9% compared to total contract revenue of $112.5 million in 2006.

* Development/Small Scale Manufacturing - contract revenue for the nine-month period ended September 30, 2007 was $34.0 million, an increase of 27% from $26.8 million in 2006.
* Discovery Services - contract revenue was $30.1 million, an increase of 10% from $27.3 million in 2006.
* Large Scale Manufacturing - contract revenue was $58.6 million, an increase of 1% compared to $58.2 million in the nine-month period ended September 30, 2006.

Milestone revenue for the first nine-months of 2007 was $1.6 million. Milestone revenue includes $1.5 million recorded in the second quarter of 2007, which resulted from the company’s 2005 licensing agreement with Bristol-Myers Squibb.

Recurring royalties from Allegra® for the first nine-months of 2007 were $21.0 million, an increase of 1% compared to royalty revenue of $20.7 million in 2006.

Net income under U.S. generally accepted accounting principles (U.S. GAAP) for the nine-month period ended September 30, 2007 was $9.8 million, or $0.30 per diluted share, compared to net income of $2.9 million, or $0.09 per diluted share, for the comparable period in 2006. Excluding Large Scale Manufacturing restructuring charges of $185,000 (net of taxes) recorded in the first and second quarters of 2007, net income for the nine months ended September 30, 2007 on an adjusted basis was $10.0 million, or $0.31 per diluted share. Excluding the charge recorded in the second quarter of 2006 to reduce the carrying value of the former Mount Prospect Research Center, net income for the nine-months ended September 30, 2006 on an adjusted basis was $5.2 million, or $0.16 per diluted share. For a reconciliation of net income and earnings per diluted share as reported to adjusted net income and earnings per diluted share, please see Table 1 at the end of this press release.

AMRI Chairman, President and CEO Thomas E. D'Ambra said, “Contract revenue for the third quarter grew 10% from last year and was on the high end of our contract revenue projections. Noteworthy, during the third quarter we saw continued revenue growth in our Discovery Services and Development/Small Scale business components. Our development/small scale component in particular remained very strong, with a 37% year-over-year quarterly increase and a 27% year-to-date increase. On the Discovery Services side, several natural products collaborations helped drive revenue growth, particularly at our U.S.-based operations. As we ramp up our international operations and begin to fully realize the benefits of our flexible cost model, we have high expectations for continued long-term growth in worldwide Discovery Services. In Large Scale Manufacturing we continue to remain on track in our overall efforts to improve the product mix and, more importantly, our margins. Our recently announced purchase of large scale manufacturing facilities in India (now referred to as AMRI India) is expected to be accretive to earnings in 2008.”

D'Ambra continued, “we continue to be bullish about the near- and long-term potential of our natural products collections. Within the past year we have initiated natural products-based research collaborations with four different customers. Many of these collaborations offer AMRI the opportunity to receive upfront payments, funded research and downstream revenue potential. AMRI’s investment in these resources and complementary technologies is beginning to deliver and impact our bottom line.”

Liquidity and Capital Resources

At September 30, 2007, AMRI had cash, cash equivalents and investments of $105.9 million, compared to $110.9 million at June 30, 2007. The decrease of $5 million in cash, cash equivalents and investments in the third quarter of 2007 was due primarily to purchases of property, plant and equipment of $4.6 million, and principal payments on the company's outstanding debt of $1.0 million. These items were partially offset by cash flow from operations of $0.6 million. Cash flow from operations increased by $0.6 million in the third quarter of 2007 as compared to the third quarter of 2006. Total debt at September 30, 2007 was $15.1 million, compared to $18.5 million at December 31, 2006. Cash, cash equivalents and investments, net of debt, were $90.8 million at September 30, 2007. Total common shares outstanding, net of treasury shares, at September 30, 2007 were 32,945,555.

Contract & Milestone Revenue Guidance

AMRI Chief Financial Officer Mark T. Frost provided contract revenue guidance for the fourth quarter, as well as contract and milestone revenue guidance for the full year 2007. “In the fourth quarter, we expect contract revenue to range from $43 million to $45 million, an increase of up to 11% from the fourth quarter of 2006,” he said. “For the full year 2007, we estimate contract and milestone revenue to range of $167 to $169 million, an increase of up to 11% from 2006.”

Third Quarter Conference Call

The company will hold a conference call at 10:00 a.m. Eastern Time on November 6, 2007 to discuss its quarterly results, business highlights and prospects. During the conference call, the company may discuss information not previously disclosed to the public. Individuals interested in listening to the conference call should dial 866-550-6338 (for domestic calls) or 347-284-6930 (for international calls) at 9:45 a.m. and use passcode 4648533. Replays of the call will be available for seven days following the call beginning at 12:00 p.m. on November 6, 2007. To access the replay by telephone, please call 888-203-1112 (for domestic calls) or 719-457-0820 (for international calls) and use access code 4648533. In addition, replays of the call will be available for twelve months on the company's website at www.amriglobal.com/investor/investcc.html.