Carrington Laboratories, Inc. Reports 2007 Financial Results
IRVING, Texas, March 31 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc. today reported revenue of $21.8 million and a net loss of $9.8 million, or ($0.90) per basic and diluted share, for the year ended December 31, 2007.
Excluding net funding of $2.8 million for DelSite Biotechnologies, Inc., the Company's wholly-owned drug delivery subsidiary, the pro forma loss for 2007 was $7.0 million. 2006's net loss, including DelSite net costs of $3.1 million, was $7.6 million, or ($0.70) per basic and diluted share, on Company- wide revenue of $27.4 million.
The decrease in revenue for 2007 was primarily due to a decrease in consumer services revenue, to $11.6 million from $16.6 million a year ago. Medical services revenues dropped slightly, to $8.4 million from $8.8 million in 2006; royalty income remained roughly the same at $417,000.
Revenue for the fourth quarter ended December 31, 2007 decreased to $5.0 million from $6.7 million in the year-ago period. The net loss for the quarter was $2.7 million, or ($0.25) per basic and diluted share. The pro forma loss, before accounting for net expenses of DelSite, was $2.1 million. The year-ago fourth quarter's final net loss, including DelSite net expenses of $622,000, was $2.2 million, or ($0.20) per basic and diluted share.
"While our consumer services revenue base continues to be under pressure due to general economic conditions and lower order flow from our historically largest customer, we are stabilizing our revenue base in medical services. I am excited about the advances being made in the three technology platforms and the typhoid antigen being developed by DelSite. As previously stated, DelSite is currently engaged in the cGMP manufacture of the H5N1 (bird flu) nasal powder vaccine and is excited about initiating the Phase I clinical trials later this year," noted Carlton E. Turner, PhD, Carrington's President and Chief Executive Officer.
"As previously announced, the Board of Directors, in conjunction with outside advisors, is reviewing a range of strategic options, including the sale of non-core assets, to help address our present liquidity concerns. If we are to strengthen the scientific, clinical and business developments at DelSite and enhance shareholder value, we must secure funds and focus on clinical developments. We cannot afford to dilute our efforts," Turner added.
Conference Call Information
Investors are invited to listen to the conference call by dialing 1-800- 295-4740 in the US or 617-614-3925 internationally. The pass code is 23455797. The call is also being web cast by CCBN and can be accessed at Carrington's web site at www.carringtonlabs.com. A replay of the call will be available a few hours after the call concludes by dialing 1-888-286-8010 in the US and 617-801-6888 internationally. The pass code for the replay is 71596841.
The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com, Thomson/CCBN's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson's password-protected event management site, StreetEvents (www.streetevents.com).
About Carrington
Carrington Laboratories, Inc. is an ISO 9001-certified, research-based, biopharmaceutical and consumer products company currently utilizing naturally- occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care, as well as to manufacture and market the nutraceutical raw material Manapol(R) and cosmetic raw material Hydrapol(TM). Carrington also manufactures and markets consumer products and manufactures quality products for other companies. Manufacturing operations comply with cGMP standards. Carrington's DelSite Biotechnologies subsidiary is developing its proprietary GelSite(R) technology designed to provide controlled release of peptide and protein-based drugs. Carrington's technology is protected by more than 130 patents in 26 countries. Select products carry the CE mark, recognized by more than 20 countries around the world. For more information, visit www.carringtonlabs.com.
Non-GAAP Financial Information
This press release contains the non-generally accepted accounting principle financial measure of Pro forma loss which is defined as net loss excluding net DelSite expenses. The amounts included in the calculation of this measure are computed in accordance with generally accepted accounting principles (GAAP). We believe this measure is useful to investors because it may provide users of this financial information with a meaningful measure of the Company's profitability before funding the research and development activities of its DelSite subsidiary. Pro forma loss is not a measure of financial performance under GAAP and thus should not be considered in isolation. Furthermore, it should not be seen as a substitute for metrics prepared in accordance with GAAP. Our reconciliation of this measure to net loss is included in the following tables.
Certain statements in this release concerning Carrington may be forward- looking. Actual events will be dependent upon a number of factors and risks including, but not limited to: subsequent changes in plans by the Company's management; delays or problems in formulation, manufacturing, distribution, production and/or launch of new finished products; changes in the regulatory process; changes in market trends; and a number of other factors and risks described from time to time in the Company's filings with the Securities & Exchange Commission, including the Form 10-K, filed March 31, 2008.
CONTACT: Carlton E. Turner, Chief Executive Officer of Carrington
Laboratories, Inc., +1-972-518-1300
Web site: http://www.carringtonlabs.com//