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Unilife Corporation Announces Financial Results For Fiscal Year 2014 First Quarter

  Unilife Corporation Announces Financial Results For Fiscal Year 2014 First
                                   Quarter

PR Newswire

YORK, Pa., Nov. 11, 2013

YORK, Pa., Nov. 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 September 30, 2013, (the first quarter of Fiscal Year 2014).

Recent Highlights

  oIn September 2013, Unilife announced the signing of a long-term supply
    contract with Sanofi. Unilife has agreed to supply Sanofi with the Unifill
    Finesse^™, a customized device from its Unifill^® platform of prefilled
    syringes with automatic, needle retraction, for use with the
    anti-thrombotic therapy Lovenox^®/Clexane^®. The contract period can
    extend up to 2024. In October 2013, Unilife received the first $5 million
    payment from Sanofi under the commercial supply agreement. Revenue from
    this payment has not yet been recognized, and was recorded as deferred
    revenue in the September 30, 2013 balance sheet.
  oEarlier today, Unilife announced another cornerstone agreement with
    MedImmune, the global biologics research and development arm of
    AstraZeneca, to customize and supply devices from its platform of wearable
    injectors. Under this agreement, Unilife will supply MedImmune with
    customized devices from its platform of ReadyToGo™ wearable injectors.
    Several drug candidates from MedImmune's portfolio may be selected for use
    with Unilife's wearable injectors under the agreement. Unilife begins
    generating revenue starting in Q1 FY14 on the basis of customization and
    supply of its products to MedImmune.
  oUnilife continues to accelerate the expansion of its customer base, and
    has multiple customers in its commercial pipeline. Information regarding
    each customer partnership will be announced when it can be disclosed.

Mr. Alan Shortall, CEO of Unilife, commented: "As I have said all along,
fiscal year 2014 is the inflection point for Unilife when we begin to show
rapidly increasing revenue. As such, we reported revenue of $3.2 million in
the first quarter of Fiscal Year 2014, which is an increase of 360% over the
same quarter in the prior year. Although the comparison is against a small
base, it is significant in that it shows the inflection point in our revenue.
From here, I expect the slope to be significant.

"As we continue to increase our investment in R&D and operations, which is
increasingly offset by our revenue, we are also narrowing our operating loss.
As such, we have reported a 10% decrease in operating loss for the first
quarter compared with the prior year period. The loss per share has narrowed
by 25% to $0.12, compared with the prior year period. I anticipate sequential
quarterly growth in Fiscal Year 2014, as well as significant annual growth
this fiscal year and beyond.

"We are focused on rapid and significant growth in the long-term. To
accomplish this, we will continue to increase our investment in R&D and
operations, much of which will be offset by our increasing revenue. I am
pleased with the results we are getting from our investment in these areas. A
look at the breadth and quality of our product portfolio on our website shows
how far we have come over the last two or three years. Although we can be cash
flow positive this year, if we wanted to do so, it is not in the best long
term interest of our shareholders. This is because limiting our investment in
R&D today can dampen the growth we anticipate in 2017 and beyond," Mr.
Shortall concluded.

Financial Results for Three Months Ended September 30, 2013

Revenue for the three months ended September 30, 2013, was $3.2 million
compared to $0.7 million for the same period in 2012.

The Company's net loss for the three months ended September 30, 2013, was
$11.2 million, or $0.12 per share, compared to a net loss of $12.5 million, or
$0.16 per share, for the same period in 2012. Adjusted net loss for the three
months ended September 30, 2013, was $7.1 million, or $0.08 per share,
compared to $9.1 million, or $0.12 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 reported $9.4 million of total cash and cash equivalents, including
$2.0 million in restricted cash as of September 30, 2013. This does not
reflect the first $5 million payment from Sanofi under the commercial supply
agreement, which was received in October 2013.

Conference Call Information

Management has scheduled a conference call for 4:30 p.m. U.S. EST on Monday,
November 11, 2013, (Tuesday, November 12, 2013 at 6:30 a.m.  AEDT), to review
the Company's financial results, customer partnerships 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 technologies includes prefilled syringes with
automatic needle retraction, drug reconstitution delivery systems,
auto-injectors, wearable injectors, ocular delivery systems and novel systems.
Each of these innovative and highly differentiated platforms can be customized
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

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



UNILIFE CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(unaudited)
                                          September 30,      June 30, 2013
                                          2013
                                          (in thousands, except share data)
Assets
Current Assets:
Cash and cash equivalents            $          $        
                                          7,416              5,736
Restricted cash                  1,966              2,400
Accounts receivable                       5,059              654
Inventories                               72                 71
Prepaid expenses and other current        284                409
assets
Total current assets                14,797             9,270
Property, plant and equipment, net      45,724             46,106
Goodwill                   11,712             11,498
Intangible assets, net           23                 23
Other assets                     1,162              1,504
Total assets                          $           $       
                                          73,418             68,401
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable                      $          $        
                                          1,909              3,428
Accrued expenses                      3,720              2,444
Current portion of long-term              2,719              3,826
debt
Deferred revenue                    115                3,010
Total current liabilities               8,463              12,708
Long-term debt, less current              19,752             20,045
portion
Deferred revenue                          5,050              50
Total liabilities                         33,265             32,803
Stockholders' Equity:
Preferred stock, $0.01 par value,
50,000,000 shares authorized as of
 September 30, 2013; none  —                  —
issued or outstanding as of September 30,
2013
 and June 30, 2013
Common stock, $0.01 par value,
250,000,000 shares authorized as of
 September 30, 2013;
100,520,211 and 95,602,558 shares issued,
and                                       1,005              956
 100,491,541 and
95,573,888 shares outstanding as of
September 30, 2013
 and June 30, 2013,
respectively
Additional paid-in-capital         283,646            268,157
Accumulated deficit                      (247,076)          (235,832)
Accumulated other comprehensive           2,718              2,457
income
Treasury stock, at cost, 28,670 shares as
of September 30, 2013 and                 (140)              (140)
 June 30, 2013,
respectively
Total stockholders' equity           40,153             35,598
Total liabilities and stockholders'       $           $       
equity                            73,418             68,401





UNILIFE CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
                                     Three Months Ended
                                     September 30,
                                     2013               2012
                                     (in thousands, except per share data)
Revenue                              $    3,187      $       692
Cost of product sales                —                  59
Gross profit                         3,187              633
Operating expenses:
Research and development             6,399              4,738
Selling, general and administrative  6,520              6,577
Depreciation and amortization        1,042              1,223
Total operating expenses             13,961             12,538
Operating loss                       (10,774)           (11,905)
Interest expense                     480                616
Interest income                      (6)                (24)
Other expense, net                   (4)                —
Net loss                             (11,244)           (12,497)
Net loss per share:
Basic and diluted net loss per share $    (0.12)     $     (0.16)





UNILIFE CORPORATION AND SUBSIDIARIES
Reconciliation of Non-GAAP Measure
(unaudited)
                                      Three Months Ended
                                      September 30,
                                      2013                2012
                                      (in thousands, except per share data)
Net loss                              $   (11,244)      $   (12,497)
Share-based compensation expense      2,636               1,555
Depreciation and amortization         1,042               1,223
Interest expense                      480                 616
Adjusted net loss                     $    (7,086)     $   (9,103)
Adjusted net loss per share – diluted $     (0.08)    $     (0.12)



SOURCE Unilife Corporation

Website: http://www.unilife.com
 
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