Unilife Corporation Announces Financial Results For Fiscal Year 2013 Third Quarter

  Unilife Corporation Announces Financial Results For Fiscal Year 2013 Third
                                   Quarter

PR Newswire

YORK, Pa., May 9, 2013

YORK, Pa., May 9, 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 March 31, 2013, (the third quarter of Fiscal Year 2013).

Recent Highlights

  oIn April, Unilife signed a 15-year customization and commercial supply
    contract with a U.S. pharmaceutical company for the EZMix^™ dual-chamber
    syringe. This contract is expected to generate up to $110 million in
    cumulative revenue from customization programs, production scale-up,
    device sales and a royalty from net drug sales.
  oIn April, Unilife agreed to preliminary terms with a leading U.S. life
    science financing firm for a debt funding program that is expected to be
    finalized later this month. Combined with the anticipated revenue to be
    generated from new and existing customer agreements, this medium-term debt
    program is expected to strengthen the Company's balance sheet and minimize
    potential dilution to existing shareholders.
  oEarlier this month, Unilife also announced the expansion of its Unifill^®
    platform of prefilled syringes with the development of the Unifill
    Assure^™ to address specific customer requirements and other unmet market
    needs for the injection of high-viscosity biologic drugs by patient
    populations with reduced dexterity.

"Having long said that 2013 would be the inflection point for our business, I
am pleased to have turned the corner. We are now entering a period of
hyper-growth, and expect to generate accelerating, recurring revenue from an
expanding base of customers," stated Mr. Alan Shortall, CEO of Unilife.

"Last month, we announced the first in a series of agreements with immediate
revenue. This 15-year customization and supply contact for the EZMix
dual-chamber syringe is with a U.S. based pharmaceutical company that we
expect will generate up to $110 million in cumulative revenue.

"We are getting ready to announce our first major long-term supply contract
for the Unifill syringe. This is a significant multi-year commercial supply
contract with a major pharmaceutical customer that generates revenue
immediately. Negotiations for this agreement are complete and all terms have
been agreed upon, with the execution copy now being routed for signature by
both parties.I expect this agreement will establish Unilife as one of the
leading suppliers of prefilled syringes in our industry.

"With so many transformational agreements generating immediate revenue, we
have no intention of doing any secondary stock offering that would cause
significant dilution to existing shareholders. We have therefore agreed to
preliminary terms with a major U.S. life science financing firm for a debt
funding program that we expect to finalize later this month. Combined with the
anticipated cash to be generated from new and existing customers, we expect
this medium-term debt program to strengthen our balance sheet as we transition
into strong and accelerating revenue growth," Mr. Shortall concluded.

Financial Results for Three Months Ended March 31, 2013

Revenues for the three months ended March 31, 2013, were $0.7 million compared
to $1.3 million for the same period in 2012. The Company's net loss for the
three months ended March 31, 2013, was $14.1 million, or $0.17 per share,
compared to a net loss of $14.9 million, or $0.21 per share, for the same
period in 2012. The decrease in the net loss was primarily attributable to the
reduction in research and development expenses of $1.2 million as well as a
decrease in selling, general and administration expenses.

Adjusted net loss for the three months ended March 31, 2013, was $9.4 million,
or $0.12 per share, compared to $10.7 million, or $0.15 per share, for the
same period in 2012. Adjusted net loss excludes non-cash share-based
compensation expense, depreciation and amortization and interest expense.

Unilife had $9.6 million of total cash and cash equivalents, including
restricted cash, as of March 31, 2013.

Conference Call Information

Management has scheduled a conference call for 4:30 p.m. U.S. EDT on Thursday,
May 9, 2013 (Friday, May 10, 2013 at 6:30 a.m.  AEST), 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, wearable injectors 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
expense.

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



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UNILIFE CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited)
                                             March 31, 2013    June 30, 2012
                                             (in thousands, except share data)
Assets
Current Assets:
Cash and cash equivalents                    $ 7,671           $ 11,410
Restricted cash                              1,966             2,400
Accounts receivable                          77                1,042
Inventories                                  75                212
Prepaid expenses and other current assets    720               676
Total current assets                         10,509            15,740
Property, plant and equipment, net           50,737            52,514
Goodwill                                     13,052            12,734
Intangible assets, net                       29                34
Other assets                                 1,271             1,286
Total assets                                 $ 75,598          $ 82,308
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable                             $ 2,322           $ 2,399
Accrued expenses                             2,420             2,209
Current portion of long-term debt            4,853             5,655
Deferred revenue                             2,661             2,595
Warrant liability                            3,026             —
Total current liabilities                    15,282            12,858
Long-term debt, less current portion         20,355            23,110
Deferred revenue                             715               2,595
Total liabilities                            36,352            38,563
Stockholders' Equity:
Preferred stock, $0.01 par value, 50,000,000
shares authorized as of March 31, 2013; none
                                             —                 —
issued or outstanding as of March 31, 2013
and June 30, 2012
Common stock, $0.01 par value, 250,000,000
shares authorized as of March 31, 2013;

89,833,871 and 75,849,439 shares issued, and 898               758
89,805,201 and 75,820,769 shares

outstanding as of March 31, 2013 and June
30, 2012, respectively
Additional paid-in-capital                   248,691           212,326
Accumulated deficit                          (213,855)         (172,634)
Accumulated other comprehensive income       3,652             3,435
Treasury stock, at cost, 28,670 shares as of (140)             (140)
March 31, 2013 and June 30, 2012
Total stockholders' equity                   39,246            43,745
Total liabilities and stockholders' equity   $ 75,598          $ 82,308



UNILIFE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
                                Three Months Ended      Nine Months Ended
                                March 31,               March 31,
                                2013        2012        2013        2012
                                (in thousands, except per share data)
Revenues:
Industrialization and           $ —         $ 566       $ —         $ 2,255
development fees
Licensing fees                  663         675         1,989       1,993
Product sales and other         22          10          87          45
Total revenues                  685         1,251       2,076       4,293
Cost of product sales           46          18          127         108
Gross profit                    639         1,233       1,949       4,185
Operating expenses:
Research and development        5,472       6,668       15,204      16,228
Selling, general and            7,255       7,677       22,159      20,572
administrative
Depreciation and amortization   1,415       1,193       4,003       3,343
Total operating expenses        14,142      15,538      41,366      40,143
Operating loss                  (13,503)    (14,305)    (39,417)    (35,958)
Interest expense                591         626         1,852       1,548
Interest income                 (10)        (46)        (48)        (102)
Other expense, net              —           1           —           37
Net loss                        $ (14,084)  $ (14,886)  $ (41,221)  $ (37,441)
Net loss per share:
Basic and diluted net loss per  $ (0.17)    $ (0.21)    $ (0.52)    $ (0.57)
share



UNILIFE CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Measure
(unaudited)
                                Three Months Ended      Nine Months Ended
                                March 31,               March 31,
                                2013        2012        2013        2012
                                (in thousands, except per share data)
Net loss                        $ (14,084)  $ (14,886)  $ (41,221)  $ (37,441)
Share-based compensation        2,680       2,403       7,198       5,788
expense
Depreciation and amortization   1,415       1,193       4,003       3,343
Interest expense                591         626         1,852       1,548
Adjusted net loss               $ (9,398)   $ (10,664)  $ (28,168)  $ (26,762)
Adjusted net loss per share –   $ (0.12)    $ (0.15)    $ (0.36)    $ (0.40)
diluted





SOURCE Unilife Corporation

Website: http://www.unilife.com
 
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