News From | |
Buena, NJ 08310 | |
Release Date:November 14, 2008 | Exhibit 99.1 |
Contact: | Rajiv Mathur |
President & Chief Executive Officer | |
IGI Laboratories, Inc. | |
856-697-1441 ext. 211 | |
www.askigi.com | |
IGI LABORATORIES, INC. ANNOUNCES THIRD QUARTER RESULTS | ||
BUENA, NJ November 14, 2008 - IGI LABORATORIES, INC. (AMEX: IG) a premier provider of topical formulation development, analytical, manufacturing and packaging services announces third quarter 2008 results. | ||
Highlights: | ||
• | Our total revenues increased 8% in 2008 compared to the first nine months of 2007. | |
• | In spite of the economic downturn, our total revenues for the third quarter in 2008 were 97% of total revenues for the same quarter in 2007. | |
• | We manufactured, packaged and delivered our first two prescription pharmaceutical products. | |
• | We are on schedule to manufacture, package and deliver four additional prescription products in the first quarter of 2009. | |
Economic factors weighed heavily on our results for the second and third quarters of 2008. Even though we added several new customers, we experienced a decline in sales from several of our existing customers due to their loss of retail sales this year. We continue our efforts in developing prescription pharmaceutical products using our technology. We have completed the pre-formulation work on these products and expect to have formulations ready for Clinical Phase I by March 2009. For better utilization of our manufacturing capacity, we continue to expand our efforts in contract manufacturing and packaging. |
Nine months ended September 30, 2008 Results |
Total revenues increased by $229,000 for the nine month period ended September 30, 2008 to $3,155,000, which represents an increase of 8% over revenues for the comparable period in 2007. |
Cost of sales increased for the nine month period ended September 30, 2008 as a result of the increased costs associated with the higher sales volume and the hiring of additional personnel. Products sold in 2008 had a slightly lower gross margin than those products sold in the comparable period in 2007; cost of sales as a percentage of product sales and research and development income was 71% for the nine month period ended September 30, 2008 compared to 66% for the comparable period in 2007. |
Selling, general and administrative expenses for nine month period ended September 30, 2008 increased as a result of higher stock based compensation expense of $155,000 from the issuance of stock options to our CEO, severance costs of $51,000 for our former Vice President of Finance as per her separation agreement, bad debt expense of $34,000, consulting fees of $26,000, higher employer match contribution in our 401k plan of $19,000 as a result of changing our 401k plan, and higher marketing expense of $16,000. |
Product development and research expenses increased by $12,000 for the nine month period ended September 30, 2008, or 3%, compared to the comparable period in 2007. |
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The company reported net loss of $(1,226,000) or $(.08) per share, for the nine month period ended September 30, 2008 compared to a net loss of $(687,000), or $(.05) per share for the comparable period in 2007, which represents a 78% increase. |
Interest expense amounted to $9,000 (net of income) for the nine month period ended September 30, 2008 compared to interest expense of $39,000 (net of income) in 2007. Interest expense decreased in 2008 as a result of a decrease in the Company's short term notes payable principal balance and a reduction in the Company's average interest rate on its short term notes payable in 2008. |
The Company had positive working capital of $318,000 for the nine months ended September 30, 2008 and a cash balance of $207,000 at September 30, 2008. |
IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome® micro-vesicular delivery technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, controlled and sustained release as well as improved stability and greater ease of formulation. |
This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "will," "possible," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. These statements may contain, among other things, guidance as to future revenue and earnings, operations, prospects of the business generally, intellectual property and the development of products. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption "Risk Factors" in IGI's most recent Annual Report on Form 10-KSB as filed with the Securities and E xchange Commission and as revised or supplemented by IGI's quarterly reports on Form 10-Q. Actual results may differ materially from these expectations due to changes in global political, economic, especially given the current financial crisis in today's economic environment and the potential reduction in demand for our products and services that could result therefrom, business, competitive, market and regulatory factors or IGI's ability to implement business strategies. IGI does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise. |
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IGI LABORATORIES, INC. AND SUBSIDIARIES |
Three months ended September 30, | Nine months ended September 30, | ||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||
Revenues: | |||||||||||
Product sales | $ | 770 | $ | 520 | $ | 2,547 | $ | 1,865 | |||
Research and development income | 116 | 329 | 244 | 617 | |||||||
Licensing and royalty income | 87 | 156 | 364 | 444 | |||||||
Total revenues | 973 | 1,005 | 3,155 | 2,926 | |||||||
Cost and expenses: | |||||||||||
Cost of sales | 732 | 494 | 1,976 | 1,632 | |||||||
Selling, general and administrative expenses | 672 | 469 | 2,031 | 1,651 | |||||||
Product development and research expenses | 136 | 135 | 372 | 360 | |||||||
Operating loss | (567) | (93) | (1,224) | (717) | |||||||
Interest expense (net) | (3) | (12) | (9) | (39) | |||||||
Other income | 2 | - | 7 | 64 | |||||||
Loss from continuing operations | (568) | (105) | (1,226) | (692) | |||||||
Gain from discontinued operations | - | - | - | 5 | |||||||
Net loss | $ | (568) | $ | (105) | $ | (1,226) | $ | (687) | |||
Basic and Diluted Loss Per Share | |||||||||||
Continuing operations net loss per share | $ | (.04) | $ | (.01) | $ | (.08) | $ | (.05) | |||
Discontinued operations income per share | - | - | - | $ | - | ||||||
Net loss per share | $ | (.04) | $ | (.01) | $ | (.08) | (.05) | ||||
Weighted Average of Common Stock and | |||||||||||
Basic and diluted | 14,907,478 | 14,612,899 | 14,872,610 | 14,210,812 | |||||||
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