New book by Larry Connors Click here Improve your trading - See how
In a release, the Company noted that revenues for the quarter increased 5 percent to $6.9 million, compared to $6.6 million for the same period in 2007. Revenues for the third quarter of 2008 were positively impacted by a 38 percent year-over-year increase in sales of Food Pathogen products, a 14 percent year-over-year increase in sales of Water and Environmental products, and a 191 percent year-over-year increase in sales of Genomic Antibody Technology (GAT) products. These solid gains were offset by a decline of 8 percent in Antibody revenues. As previously announced, the antibody business was adversely affected by decreased orders of Bulk and Monoclonal antibodies by customers who had accumulated excess inventories.
Year-to-date revenues increased 3 percent to $20.6 million, versus $19.9 million for the same period in 2007. Revenues were positively impacted by a 30 percent increase in sales of Food Pathogen products as well as an 11 percent increase in sales of Water and Environmental products. These gains were offset by a 4 percent reduction in Antibody revenue.
In a release, the company noted third quarter and recent highlights include:
- Over 50 percent of the Company's GAT revenue was from new customers, demonstrating SDI's expanding reach.
- SDI entered into a collaborative agreement with the University of Delaware, along with the Helen F. Graham Cancer Center at Christiana Care Health System, to develop biomarkers that detect prostate cancer metastasis.
- Francis DiNuzzo, previously interim Chief Executive Officer of the Company, was appointed President and Chief Executive Officer.
- Deborah Day Barbara was appointed Vice President of Business Development.
- Stock repurchase program was approved for up to $3 million of SDI's outstanding shares of common stock over the next 12 months.
Francis DiNuzzo, the Company's Chief Executive Officer, commented, "The third quarter shows significant strides in SDI's upward climb toward financial and strategic growth. Overall, I am pleased with the results we saw in this past quarter, particularly across our GAT, Food Pathogen, and Water and Environmental businesses. There was again a shortfall in the monoclonal and bulk antibody customer orders due to previous excess inventory, which we fortunately expect to have a short-lived effect on customer purchase patterns and SDI revenues. These customers tell us that they are pleased with the quality of antibodies we are providing and some are actually referring more business to us. The investments we made over the previous year in our antibody production capacity are expected to improve our margins as we continue to look towards higher value growth. I look forward to the ongoing process of strengthening our different business units, focusing on key opportunities that we believe will best drive shareholder value. Our recent collaboration with the University of Delaware shows our commitment to move up the value chain to new and opportunistic life science markets."
Gross profit (defined as total revenues less manufacturing expenses) for the quarter ended September 30, totaled $3.3 million, as compared to $3.9 million for the same period in 2007. Gross margins were 49 percent for the third quarter of 2008 compared to 59 percent for the same period in 2007. Margins were negatively impacted by underutilized capacity in the antibody business.
Selling, general and administrative (SG&A) costs rose to $3.5 million for the third quarter of 2008 from $2.9 million for the third quarter of 2007. As a percentage of sales in these periods, SG&A expenses were 51 percent of revenues compared to 44 percent for the prior year. This increase is driven by costs associated with recruiting for additional management positions and continuing investments to strengthen the Company's entrance into the life science markets.
Research and development costs rose to $1.0 million for the third quarter of 2008 from $0.7 million for the third quarter of 2007. Research and development costs were 14 percent of revenues for the third quarter of 2008 compared to 11 percent for the third quarter of 2007. This increase is attributable to the continued development of SDI's GAT platform and costs associated with the Company's industrial biofermentation research efforts.
Pre-tax loss for the third quarter of 2008 totaled $1.1 million, compared to pre-tax income of $0.3 million for the prior year's third quarter. Net loss for the 2008 third quarter was $2.2 million, or $0.11 per diluted share, compared to net income of $0.0, or $0.00 per diluted share, for the third quarter last year. Diluted shares totaling 20.4 million and 20.5 million were used in the computations for the third quarters of 2008 and 2007, respectively.
During the third quarter, the Company determined that federal net operating loss carryforwards expiring in the year 2010 may not be utilized. This resulted in a charge of approximately $1.6 million to income tax expense which is reflected in our net loss for the third quarter and nine months ended September 30. Taking this charge does not preclude the Company from utilizing these net operating loss carryforwards prior to their expiration date, if conditions allowed. Doing so would result in a tax benefit. As indicated by the fact that a charge has been taken, the Company does not currently expect this to occur.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed via M2 Communications Ltd - http://www.m2.com))
http://www.10meters.com
Comments on this story may be sent to newsdesk@closeupmedia.com
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
