SciClone Reports Financial Results for the Third Quarter of 2011
On a pro forma basis, assuming
"Our strategy of creating a market-leading specialty pharmaceutical company in
On a GAAP basis, SciClone's net income for the third quarter of 2011 was
SciClone's non-GAAP net income for the third quarter of 2011 was
For the nine months and for the quarter ending
SciClone believes this non-GAAP information is useful for investors by offering them the ability to better understand how management evaluates the business. The non-GAAP calculations and reconciliation to comparable GAAP measures were derived principally as a result of the
Research and development expenses for the third quarter of 2011 totaled
Sales and marketing expenses for the third quarter of 2011 were
General and administrative expenses for the third quarter of 2011 were
At
Third Quarter 2011 Pipeline and Business Updates
In October, SciClone announced that its Board of Directors approved a share repurchase program authorizing the Company to repurchase up to
Third Quarter Conference Call
SciClone is hosting a conference call today at
LIVE CALL:
877-556-5921 (U.S./
617-597-5474 (International)
Passcode: 45149576
REPLAY:
888-286-8010 (U.S./
617-801-6888 (International)
Passcode: 50188621
(Replay available from
The conference call will contain forward-looking statements. Interested parties who wish to listen to the webcast should visit the Investor Relations section of SciClone's website at www.sciclone.com. The information provided on the teleconference is accurate only at the time of the conference call, and SciClone will take no responsibility for providing updated information except as required by law.
About SciClone
Forward-Looking Statements
This press release contains forward-looking statements regarding expected financial results and expectations. Readers are urged to consider statements that include the words "may," "will," "would," "could," "should," "might," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," "unaudited," "approximately" or the negative of those words or other comparable words to be uncertain and forward-looking. These statements are subject to risks and uncertainties that are difficult to predict and actual outcomes may differ materially. These include risk and uncertainties relating to: the course, cost and outcome of regulatory matters, including pricing decisions by authorities in
Ambien, Depakine, Stilnox and Tritace are registered trademarks of Sanofi.
Aggrastat is a registered trademark of Merck & Co., Inc.
DC Bead® is a registered trademark of
SCICLONE PHARMACEUTICALS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three months ended Nine months ended
September 30, September 30,
------------------------ ------------------------
2011 2010 2011 2010
----------- ----------- ----------- -----------
Revenues:
Product sales $ 30,433 $ 22,840 $ 79,484 $ 61,496
Promotion services 6,992 - 12,711 -
----------- ----------- ----------- -----------
Total revenues 37,425 22,840 92,195 61,496
Operating expenses:
Cost of product sales 5,024 3,146 13,301 9,445
Sales and marketing 15,222 5,445 33,311 15,996
Amortization of
acquired intangible
assets, related to
sales and marketing 858 - 1,572 -
Research and
development 3,035 2,618 9,235 7,700
General and
administrative 5,202 3,820 19,419 10,403
Contingent
consideration (2,231) - (1,423) -
----------- ----------- ----------- -----------
Total operating
expenses 27,110 15,029 75,415 43,544
----------- ----------- ----------- -----------
Income from operations 10,315 7,811 16,780 17,952
Interest and investment
income 15 31 48 79
Interest and investment
expense (49) (19) (159) (57)
Other (expense) income,
net (5) 64 6 (19)
----------- ----------- ----------- -----------
Income before provision
for income tax 10,276 7,887 16,675 17,955
Provision for income tax 46 259 613 654
----------- ----------- ----------- -----------
Net income $ 10,230 $ 7,628 $ 16,062 $ 17,301
=========== =========== =========== ===========
Basic net income per
share $ 0.18 $ 0.16 $ 0.30 $ 0.36
Diluted net income per
share $ 0.17 $ 0.16 $ 0.28 $ 0.35
Weighted average shares
used in computing:
Basic net income per
share 58,331 47,795 54,044 47,535
Diluted net income per
share 60,437 49,071 56,426 49,293
SCICLONE PHARMACEUTICALS, INC.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
September 30, 2011 September 30, 2011
------------------------- -------------------------
2011 2010 2011 2010
----------- ------------ ----------- ------------
GAAP net income $ 10,230 $ 7,628 $ 16,062 $ 17,301
Non-GAAP adjustments:
Employee stock-based
compensation 881 547 2,130 1,552
Contingent
consideration (2,231) - (1,423) -
Amortization of
acquired intangible
assets 858 - 1,572 -
Acquisition related
costs 28 250 3,810 250
----------- ------------ ----------- ------------
Non-GAAP net income $ 9,766 $ 8,425 $ 22,151 $ 19,103
----------- ------------ ----------- ------------
Non-GAAP basic net
income per share $ 0.17 $ 0.18 $ 0.41 $ 0.40
Non-GAAP diluted net
income per share $ 0.16 $ 0.17 $ 0.39 $ 0.39
Weighted average shares
used in computing:
GAAP and Non-GAAP basic
net income per share 58,331 47,795 54,044 47,535
GAAP and Non-GAAP
diluted net income per
share 60,437 49,071 56,426 49,293
SciClone management uses these non-GAAP financial measures to monitor and evaluate the Company's operating results and trends on an on-going basis and internally for operations, budgeting and financial planning purposes. SciClone believes the non-GAAP information is useful for investors by offering them the ability to better understand how management evaluates the business. These non-GAAP measures have limitations, however, because they do not include all items of income and expenses that affect SciClone. These non-GAAP financial measures that management uses are not prepared in accordance with, and should not be considered in isolation of, or as an alternative to, measurements required by GAAP.
SciClone's non-GAAP financial measures exclude the following items from GAAP net income and net income per share:
- Employee stock-based compensation. The effects of non-cash employee stock-based compensation.
- Contingent consideration. The contingent consideration related to the acquisition of
NovaMed is re-measured each reporting period and the change in fair value is recorded as (credit) or debit to operating expense. SciClone's non-GAAP financial measure excludes the change in fair value of the liability for contingent consideration in connection with the acquisition ofNovaMed . - Amortization of acquired intangible assets. We recorded intangible assets in connection with the acquisition of
NovaMed . The amortization of these intangible assets is excluded from SciClone's non-GAAP financial measure. - Acquisition related costs. We incurred certain one-time acquisition costs related to the acquisition of
NovaMed . The effects of these acquisition related costs are excluded from SciClone's non-GAAP financial measure.
SCICLONE PHARMACEUTICALS, INC.
UNAUDITED SELECTED BALANCE SHEET DATA
(in thousands)
September 30, December 31,
2011 2010
-------------- --------------
Cash and investments $ 44,951 $ 56,522
Accounts receivable, net 50,491 30,671
Inventories 9,141 7,078
Intangible assets, net 45,562 -
Goodwill 31,569 -
Total assets 186,690 97,807
Total current liabilities 18,336 12,129
Liability for contingent consideration 17,433 -
Deferred tax liability 8,472 -
Long-term borrowing on line of credit 2,500 2,500
Total shareholders' equity 139,415 82,188
Corporate ContactsGary Titus Chief Financial Officer 650.358.3456 gtitus@sciclone.comAna Kapor Investors/Media 650.350.4825 akapor@sciclone.com
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