This is getting monotonous. Where is the marketing effort?
>>ALBANY, Ore., Jun 6, 2001 /PRNewswire via COMTEX/ -- Synthetech, Inc. (Nasdaq: NZYM chart, msgs) today announced revenues of $7.4 million for the fiscal year ended March 31, 2001, a 39% decrease from $12.1 million for fiscal 2000. Operating loss for fiscal 2001 was $1.8 million compared to operating income of $2.5 million for fiscal 2000. Net loss for the current fiscal year was $841,000 or $0.06 per share compared to net income of $1.9 million or $.14 per share last fiscal year. For the fourth quarter ended March 31, 2001, revenues were $2.2 million, a 17% decrease from $2.6 million for the same period last year. Operating loss for the fourth quarter of fiscal 2001 was $622,000 compared to operating income of $295,000 last year. Net loss for the fourth quarter of fiscal 2001 was $333,000 or $0.02 per share, compared to net income of $384,000 or $0.03 per share for the fourth quarter last year. International sales represented 23% of total revenues for fiscal year 2001.
Three Months Ended Twelve Months Ended
March 31, March 31,
(thousands except 2001 2000 2001 2000
per share data)
Revenues $2,166 $2,623 $7,359 $12,132
Cost of revenues 2,302 1,934 7,288 7,936
Gross profit (loss) (136) 689 71 4,196
Research and development 148 101 458 436
Selling, general
and administrative 338 293 1,364 1,216
Operating income (loss) (622) 295 (1,751) 2,544
Other income, net 85 83 395 347
Provision (benefit)
for income taxes (204) (6) (515) 949
Net income (loss) $(333) $384 $(841) $1,942
Basic earnings
(loss) per share $(0.02) $0.03 $(0.06) $0.14
Diluted earnings
(loss) per share $(0.02) $0.03 $(0.06) $0.14
Synthetech's cash and cash equivalents totaled approximately $5.39 million and$6.40 million at the end of fiscal 2001 and fiscal 2000, respectively. The following table presents selected financial information regarding net cash used for each fiscal year:
Selected Cash Flow Information
Twelve Months Ended
March 31,
(thousands) 2001 2000
Net income (loss) $(841) $1,942
Depreciation, amortization and
other non-cash items 2,696 1,989
Working capital changes (312) (1,251)
Net cash from operations 1,543 2,680
Capital expenditures (2,539) (3,746)
Financing activities (19) --
Net decrease in cash and cash equivalents $(1,015) $(1,066)
Commenting on the results, M. "Sreeni" Sreenivasan, President & CEO, said, "We are naturally disappointed in our fiscal 2001 results with the first net loss in a dozen consecutive years. Our gross profit margin and bottom line largely reflected the lower level of revenues caused by the dearth of large-scale orders for Peptide Building Blocks (PBBs) combined with higher fixed costs to support future growth. Approximately half ($3.6 million) of the Cost of Revenues in fiscal 2001 represented manufacturing overhead not directly allocable to production projects. It is important to note as well that Synthetech continued to generate positive cash flow from operations after taking into account $2.7 million of depreciation, amortization and other non-cash items in fiscal 2001. Looking ahead, the order backlog of nearly $4 million going into the new fiscal year includes PBB orders for two large-scale projects worth $2.7 million to be delivered during the first half of the current fiscal year. Barring clinical or marketing setbacks for our customers' products, these projects are likely to continue during the second half of the current fiscal year, with potential for additional orders of over $4 million. While this is exactly the type of repeat business we seek, we need a combination of additional projects with significant revenue opportunities to move through the development pipeline before we can expect our financial results to improve significantly from those in recent quarters."
He added that the Company has not curtailed any of the strategic investment plans in infrastructure and organizational capabilities. A planned $1.2 million upgrade and expansion of the Research & Development wing was completed and occupied recently. The Company continues to believe that it is well positioned to generate substantial future revenues as a supplier of PBBs for pharmaceutical and other projects. The progress and timing of these projects, however, remains outside the control of the Company.<<
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Cheers, Tuck |
