LANNETT COMPANY REPORTS RESULTS OF OPERATIONS FOR ITS 1ST
QUARTER OF FISCAL 2004
SALES - $13.2 MILLION; NET INCOME - $3.4 MILLION; EARNINGS PER
SHARE - $0.17
PHILADELPHIA, PA - October 29, 2003 - LANNETT COMPANY, INC.
(AMEX: LCI), a manufacturer of generic pharmaceuticals, is pleased to announce
its unaudited results of operations for the quarter ended September 30, 2003.
The Company's results of operations are summarized as follows:
o A 45% increase in Net Sales for the 1st Quarter of Fiscal 2004
compared to the 1st Quarter of Fiscal 2003;
o A 34% increase in Net Income for the 1st Quarter of Fiscal 2004
compared to the 1st Quarter of Fiscal 2003;
The following table presents Lannett's unaudited results of
operations for the quarter ended September 30, 2003, compared to the quarter
ended September 30, 2002:
Quarter Ended
9/30/03 9/30/02
Unaudited Unaudited
(In thousands,
except for Diluted Income per Share)
Net Sales $ 13,221 $ 9,127
Cost of Sales 4,797 3,836
-----------------------------------
Gross Profit 8,424 5,291
Research & Development Expenses 886 456
Selling, General & Admin. Expenses 1,726 894
-----------------------------------
Operating Profit 5,812 3,941
Other Income/(Expense) (8) (24)
-----------------------------------
Income Before Taxes 5,804 3,917
Income Tax Expense 2,379 1,365
-----------------------------------
Net Income 3,425 2,552
===================================
Diluted Income per Share *** $ 0.17 $ 0.13
===================================
*** DILUTED INCOME PER SHARE FOR THE QUARTER ENDED SEPTEMBER 30, 2002 HAS BEEN
ADJUSTED FOR THE COMPANY'S 3 FOR 2 STOCK SPLIT EFFECTIVE FOR SHAREHOLDERS OF
RECORD ON FEBRUARY 14, 2003.
The Company attributes the increases in sales and income to the
introduction of new products, and increased sales of a portion of its previously
marketed products.
The Company's common stock trades on the American Stock Exchange under
the symbol "LCI". For more information please call Investor Relations at
215/333-9000.
THIS PRESS RELEASE CONTAINS CERTAIN STATEMENTS OF A FORWARD-LOOKING
NATURE RELATING TO FUTURE EVENTS OR FUTURE BUSINESS PERFORMANCE. ANY SUCH
STATEMENTS THAT REFER TO LANNETT'S ESTIMATED OR ANTICIPATED FUTURE FINANCIAL
RESULTS, FUTURE INVENTORY LEVELS, FUTURE COMPETITION OR PRICING, FUTURE LEVELS
OF OPERATING EXPENSES, PRODUCT DEVELOPMENT EFFORTS OR PERFORMANCE, OR OTHER
NON-HISTORICAL FACTS ARE FORWARD-LOOKING AND REFLECT LANNETT'S CURRENT
PERSPECTIVE OF EXISTING TRENDS AND INFORMATION. THESE STATEMENTS INVOLVE RISKS
AND UNCERTAINTIES THAT CANNOT BE PREDICTED OR QUANTIFIED AND, CONSEQUENTLY,
ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES INCLUDE, AMONG OTHERS,
THE UNCERTAINTY THAT ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THE PRELIMINARY
RESULTS DESCRIBED IN THIS PRESS RELEASE, RATES OF SALE OF CUSTOMER INVENTORIES,
THE SUCCESS OF LANNETT'S PRODUCT DEVELOPMENT ACTIVITIES AND THE TIMELINESS WITH
WHICH REGULATORY AUTHORIZATIONS AND PRODUCT ROLL-OUT MAY BE ACHIEVED, MARKET
ACCEPTANCE OF LANNETT'S PRODUCTS AND THE IMPACT OF COMPETITIVE PRODUCTS AND
PRICING, THE AVAILABILITY ON COMMERCIALLY REASONABLE TERMS OF RAW MATERIALS AND
OTHER THIRD PARTY SOURCED PRODUCTS, SUCCESSFUL COMPLIANCE WITH EXTENSIVE,
COSTLY, COMPLEX AND EVOLVING GOVERNMENTAL REGULATIONS AND RESTRICTIONS, EXPOSURE
TO PRODUCT LIABILITY AND OTHER LAWSUITS AND CONTINGENCIES, AND OTHER RISKS AND
UNCERTAINTIES DETAILED IN LANNETT'S MOST RECENT FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, INCLUDING BUT NOT LIMITED TO: LANNETT'S ANNUAL REPORT AND
FORM 10-KSB FOR THE YEAR ENDED JUNE 30, 2003.
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