subject: Pennytobuck's Thursday Stocks To Watch : Matk And Prot [print this page] Martek Biosciences Corporation (Nasdaq:MATK) reported on September 1st, 2010, the release of it's financial results for the third quarter of fiscal 2010. Revenues for the third quarter were $117.2 million, up 51% from $77.8 million in the third quarter of fiscal 2009.
GAAP net income was $11.9 million, or $0.35 per diluted share, for the third quarter of fiscal 2010, an increase of 33% compared to $8.9 million, or $0.27 per diluted share, for the third quarter of fiscal 2009. The revenues and earnings for the third quarter of fiscal 2010 include the results of Amerifit Brands ("Amerifit" or "branded consumer health products"), the acquisition of which was completed by Martek on February 12, 2010. The third quarter of fiscal 2010 included charges related to the acquisition of Amerifit of $700,000 and charges related to the Winchester restructuring of $600,000.
Revenue Summary
Product sales in the third quarter of fiscal 2010 were $114 million, an increase of $38.9 million from the third quarter of fiscal 2009. This increase was partially attributable to the branded consumer health product sales of Amerifit which totaled $20.3 million in the third quarter. The remainder of the increase, or $18.6 million, was the result of sales of our nutritional ingredients in both the infant formula and non-infant formula markets. Demand increases outside the United States, particularly in Asia, were a key driver of the growth in both markets.
During the third quarter of fiscal 2010, selling, general and administrative expenses were $18.9 million, or 16% of revenue, consistent with prior guidance and an increase from $11.0 million, or 14% of revenue, in last year's third quarter due partially to the incremental expenses attributable to Amerifit.
Financial Position
As previously noted, Martek financed its February 2010 acquisition of Amerifit through available cash, a new term debt facility totaling $75 million, and $11 million drawn from a new revolving credit facility. Strong cash generation since the acquisition, including over $36 million in the third quarter of fiscal 2010, enabled a full repayment of all acquisition financing within five months of the acquisition date. As such, as of July 31, 2010, the Company returned to being essentially debt-free and now has its entire $100 million credit line available.
Martek Biosciences Corporation is a leader in the innovation, development, production and sale of high-value products from microbial sources that promote health and wellness through nutrition. The Company's technology platform consists of its core expertise, broad experience and proprietary technology in areas such as microbial biology, algal genomics, fermentation and downstream processing. This technology platform has resulted in Martek's development of a number of products, including the company's flagship product, life'sDHA, a sustainable and vegetarian source of algal DHA (docosahexaenoic acid) important for brain, heart and eye health throughout life for use in infant formula, pregnancy and nursing products, foods and beverages, dietary supplements and animal feeds. The Company also produces life'sARA (arachidonic acid), an omega-6 fatty acid, for use in infant formula and growing-up milks. Martek's subsidiary, Amerifit Brands, develops, markets and distributes branded consumer health and wellness products and holds leading brand positions in all of its key product categories. Amerifit products are sold in most major mass, club, drug, grocery and specialty stores and include: Culturelle, a leading probiotic supplement; AZO, the leading OTC brand addressing symptom relief and detection of urinary tract infections; and ESTROVEN, the leading all-natural nutritional supplement brand addressing the symptoms of menopause. Martek currently has a number of nutritional health and wellness products under development that it plans to commercialize and distribute through Amerifit's distribution channels. Martek's technology platform has also made it a sought-after partner on a range of groundbreaking projects in process, including the development of microbially-derived biofuels and the development of DHA-containing oilseeds. For more information on Martek Biosciences, visit http://www.martek.com/. For a complete list of life'sDHA and life'sARA products, visit http://www.lifesdha.com/. For more information about Amerifit Brands, visit www.amerifit.com.
Proteonomix, Inc. (PROT) Plans European Investor Road Show
-Michael Cohen, Chairman and CEO, to Visit Several European Cities to Discuss Companys Growth Plan and Future Outlook With Investors
PROTEONOMIX, INC. (OTCBB:PROT), a biotechnology company focused on developing therapeutics based upon the use of human cells and their derivatives, announced last week that Mr. Michael Cohen, Chairman and CEO, is scheduling a multi-city European road trip to create additional awareness of the Proteonomix, Inc. investment opportunity to institutional investors.
Scheduled for early October, Mr. Cohen will discuss with sophisticated investors the recent contract to establish a joint venture with a group of investors that will establish a new stem cell treatment and research facility in the United Arab Emirates (U.A.E.). In addition, Mr. Cohen will discuss the opportunity to set up additional joint ventures in other countries using the U.A.E. arrangement as a model.
The recent contract calls for the joint venture partner to invest $5 million on or before September 10,2010 in a Joint Venture company, XGEN Medical LLC. (XGen), a Nevis Island limited liability company.
For additional details about the joint venture agreement, please refer to the August 17, 2010 press release.
Proteonomix has made great strides recently, stated Mr. Cohen, and we have been contacted by several European entities that have requested additional information about our proprietary stem cell activities. In recognition of the interest in Europe and the potential for additional joint venture agreements in various European countries, we recognize that it is propitious to meet with a number of the European institutional investors both to educate them on the intrinsic value of Proteonomix shares and garner interest in strategic relationships.
Proteonomix is a biotechnology company focused on developing therapeutics based upon the use of human cells and their derivatives. Proteoderm, Inc. is a wholly owned subsidiary of Proteonomix that has recently opened its retail web site, Proteoderm.com, and begun accepting pre-orders for its anti-aging line of skin care products. StromaCel, Inc.s goal is the development therapeutic modalities for the treatment of Cardiovascular Disease (CVD).
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