Unilife Corporation Announces Financial Results For Fiscal Year 2013 Second Quarter

 Unilife Corporation Announces Financial Results For Fiscal Year 2013 Second

PR Newswire

YORK, Pa., Feb. 11, 2013

YORK, Pa., Feb. 11, 2013 /PRNewswire/ --Unilife Corporation ("Unilife" or
"Company") (NASDAQ:UNIS; ASX:UNS), a developer and supplier of injectable
drug delivery systems, today announced its financial results for the quarter
ended December 31, 2012, (the second quarter of Fiscal Year 2013).

Highlights for the Fiscal Year 2013 Second Quarter:

  oIn November 2012, Unilife announced that its platform of bolus injection
    devices had been selected by a global pharmaceutical company to enter a
    final stage of evaluation as its preferred choice for use in a multi-drug
    program. Unilife's bolus injectors have also been selected by many other
    pharmaceutical companies for targeted use with late-stage pipeline drugs.
    Negotiations for agreements are underway in each case.
  oIn December 2012, Unilife announced that a U.S. based pharmaceutical
    company has commenced stability and evaluation studies of the Unifill^®
    syringe for use with multiple injectable drugs. The target drugs, which
    include both pipeline drugs as well as commercially approved drugs that
    will benefit from lifecycle extension, are high-value therapeutics for
    chronic diseases and require periodic injections.
  oUnilife continued to supply initial batches of Unifill syringes to many
    pharmaceutical companies that are in various stages of evaluating its use
    for a range of approved and late-stage pipeline drugs. In addition to
    prospective supply and clinical development contracts, we expect other
    customers to enter their drugs into stability studies with Unifill this
    calendar year.
  oUnilife announced the development of its Depot-Ject™ and Unilife Ocu-Ject™
    platforms for the targeted delivery of drugs to specific regions of the
    body such as the eye. These high-precision drug delivery platforms are now
    being pursued by multiple interested parties.
  oThe RITA™ disposable auto-injectors and LISA™ reusable auto-injectors were
    supplied to a number of pharmaceutical companies for evaluation and user
    studies. Unilife has been advised that these evaluations are progressing
  oThe Unilife EZMix™ drug reconstitution system was selected by a
    pharmaceutical company for use with a late-stage pipeline drug.
    Negotiations for an EZMix supply contract with this company are underway.
  oUnilife expanded its commercial development team with the appointment of
    Douglas Stout, Derek Giersch, Joseph Crusco as Senior Directors of
    Commercial Development; and Jashin Gugnani as Director of Commercial
    Development in October 2012; as well as the appointment of Glenn Thorpe as
    Vice-President of Commercial Development in February 2013.

"During the quarter, we were pleased to provide shareholders with greater
insight into the size and scope of our commercial pipeline," stated Mr. Alan
Shortall, CEO of Unilife. "Out of 31 active programs selected from our deep
and rapidly expanding commercial pipeline, we expect several to generate
initial revenues during calendar year 2013. Given the size and long-term
nature of many of these prospective agreements, we are confident they will
underpin our future success.

"Over the last few weeks, we raised approximately $13.4 million in net equity
capital, which has strengthened our balance sheet as we look to finalize
several commercial supply contracts and clinical development agreements. We
are also working to conclude discussions with U.S. institutions to secure
long-term debt financing that will support the Company's operational
activities and minimize dilution for the foreseeable future," Mr. Shortall

Financial Results for Three Months Ended December 31, 2012
Revenues for the three months ended December 31, 2012, were $0.7 million
compared to $0.9 million for the same period in 2011. The Company's net loss
for the three months ended December 31, 2012, was $14.6 million, or $0.19 per
share, compared to a net loss of $12.9 million, or $0.19 per share, for the
same period in 2011. The increase in the net loss was primarily attributable
to the decrease in revenue and an increase in non-cash share-based
compensation expenses.

Adjusted net loss for the three months ended December 31, 2012, was $9.7
million, or $0.12 per share, compared to $9.6 million, or $0.14 per share, for
the same period in 2011. Adjusted net loss excludes non-cash share-based
compensation expense, depreciation and amortization and interest expense.

Unilife had $8.3 million of total cash, including restricted cash, as of
December 31, 2012, which does not reflect the $3.8 million in net proceeds the
Company received from the implementation of its At-the-Market (ATM) facility
with Cantor Fitzgerald in January 2013; or the $9.6 million in net proceeds
the Company received from a common stock offering with a U.S. based
institutional investor in February 2013.

Conference Call Information
Management has scheduled a conference call for 4:30 p.m. U.S. EST on Monday,
February 11, 2013 (Tuesday, February 12, 2013 at 8:30 a.m.  AEDT), to review
the Company's financial results, market trends and future outlook. The
conference call and accompanying slide presentation will be broadcast over the
Internet as a "live" listen only Webcast. An archive of the presentation and
webcast will be available for 30 days after the call. To listen, please go
to: http://ir.unilife.com/events.cfm. 

About Unilife Corporation
Unilife Corporation (NASDAQ:UNIS / ASX: UNS) is a U.S. based developer and
commercial supplier of injectable drug delivery systems. Unilife's broad
portfolio of proprietary device technologies includes prefilled syringes with
automatic needle retraction, drug reconstitution delivery systems,
auto-injectors, bolus injection devices and targeted delivery systems. Each of
these innovative and highly differentiated device platforms can be customized
by Unilife to address specific customer, drug and patient requirements.
Unilife's global headquarters and state-of-the-art manufacturing facilities
are located in York, PA. For more information, please visit www.unilife.com or
download the Unilife IRapp on your iPhone, iPad or Android device.

Forward-Looking Statements
Thispress release contains forward-looking statements. All statements that
address operating performance, events or developments that we expect or
anticipate will occur in the future are forward-looking statements.These
forward-looking statements are based on management's beliefs and assumptions
and on information currently available to our management. Our management
believes that these forward-looking statements are reasonable as and when
made. However, you should not place undue reliance on any such forward-looking
statements because such statements speak only as of the date when made. We do
not undertake any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. In addition, forward-looking statements
are subject to certain risks and uncertainties that could cause actual
results, events and developments to differ materially from our historical
experience and our present expectations or projections. These risks and
uncertainties include, but are not limited to, those described in "Item1A.
Risk Factors" and elsewhere inourAnnual Report on Form 10-Kand those
described from time to time in other reports which we file with the Securities
and Exchange Commission.

Non-GAAP Financial Measures
U.S. securities laws require that when we publish any non-GAAP financial
measure, we disclose the reason for using the non-GAAP measure and provide
reconciliation to the most directly comparable GAAP measure. The presentation
of adjusted net income (loss) and adjusted net income (loss) per share are
non-GAAP measures. Adjusted net income (loss) represents net income (loss)
calculated in accordance with U.S. GAAP as adjusted for the impact of
share-based compensation expense, depreciation and amortization and interest

Management believes the presentation of adjusted net income (loss) and
adjusted net income (loss) per share provides useful information because these
measures enhance its own evaluation, as well as investor's understanding, of
the Company's core operating and financial results. Non-GAAP financial
measures should be considered in addition to results prepared in accordance
with GAAP, but should not be considered a substitute for, or superior to, GAAP
results. A reconciliation of net income (loss) to adjusted net income (loss)
is included in the attached table.

General: UNIS-G

Investor Contacts (US):      Analyst Enquiries  Contacts
Todd Fromer / Garth Russell      Lynn                    Jeff Carter
KCSA Strategic Communications        Westwicke Partners    Unilife
P: + 1                                     P: + 1 415-202-5678 P: + 61 2
212-682-6300                               8346 6500

(Tables Below)


Consolidated Balance Sheets

                                             December31,2012  June30,2012
Current Assets:
Cash and cash equivalents         $      5,914  $  11,410
Restricted cash                          2,400              2,400
Accounts receivable                 104                1,042
Inventories                       156                212
Prepaid expenses and other current assets    714                676
Total current assets                       9,288              15,740
Property, plant and equipment, net   51,375             52,514
Goodwill                           12,993             12,734
Intangible assets, net                   31                 34
Other assets                             1,275              1,286
Total assets                                $     74,962  $  82,308
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable                             $      1,845  $   2,399
Accrued expenses                             2,430              2,209
Current portion of long-term debt          5,804              5,655
Deferred revenue                           2,649              2,595
Total current liabilities         12,728             12,858
Long-term debt, less current portion   20,615             23,110
Deferred revenue                   1,374              2,595
Total liabilities                  34,717             38,563
Stockholders' Equity:
Preferred stock, $0.01 par value, 50,000,000
shares authorized as of

 December31, 2012; none issued or         —                  —
outstanding as of December31, 2012 and

 June30, 2012
Common stock, $0.01 par value, 250,000,000
shares authorized as of

 December31, 2012; 83,288,081 and
75,849,439 shares issued, and                833                758

 83,259,411 and 75,820,769 shares
outstanding as of December31, 2012 and

 June30, 2012, respectively
Additional paid-in-capital                 235,720            212,326
Accumulated deficit                (199,771 )         (172,634 )
Accumulated other comprehensive income       3,603              3,435
Treasury stock, at cost, 28,670 shares as of
December31, 2012 and June30,               (140 )             (140 )

Total stockholders' equity                  40,245             43,745
Total liabilities and stockholders' equity  $     74,962  $  82,308


Consolidated Statements of Operations


                              Three Months Ended        Six Months Ended
                              December 31,              December 31,
                              2012         2011         2012         2011
                              (in thousands, except per share data)
Industrialization and         $       $       $       $   
development fees               —          249           —         1,689
Licensing fees                663          646          1,326        1,318
Product sales and other       36           17           65           35
Total revenues                699          912          1,391        3,042
Cost of product sales         22           16           81           90
Gross profit                  677          896          1,310        2,952
Operating expenses:
Research and development      4,994        5,262        9,732        9,560
Selling, general and          8,327        6,712        14,904       12,895
Depreciation and amortization 1,365        1,157        2,588        2,150
Total operating expenses      14,686       13,131       27,224       24,605
Operating loss                (14,009)     (12,235)     (25,914)     (21,653)
Interest expense              645          639          1,261        922
Interest income               (14)         (26)         (38)         (56)
Other expense, net            —            2            —            36
Net loss                      $           $           $           $ 
                              (14,640)    (12,850)    (27,137)    (22,555)
Net loss per share:
Basic and diluted net loss    $         $         $         $   
per share                     (0.19)      (0.19)      (0.35)      (0.35)


Reconciliation of Non-GAAP Measure


                    Three Months Ended            Six Months Ended
                    December 31,                  December 31,
                    2012           2011           2012           2011
                    (in thousands, except per share data)
Net loss            $  (14,640)  $  (12,850)  $  (27,137)  $  (22,555)
compensation        2,963          1,485          4,518          3,385
Depreciation and    1,365          1,157          2,588          2,150
Interest expense    645            639            1,261          922
Adjusted net loss   $            $            $  (18,770)  $  (16,098)
                    (9,667)       (9,569)
Adjusted net loss   $           $           $           $   
per share – diluted (0.12)        (0.14)        (0.24)        (0.25)

SOURCE Unilife Corporation

Website: http://www.unilife.com
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