Unilife Corporation Announces Financial Results For Fiscal Year 2014 Second Quarter

 Unilife Corporation Announces Financial Results For Fiscal Year 2014 Second
                                   Quarter

PR Newswire

YORK, Pa., Feb. 3, 2014

YORK, Pa., Feb. 3, 2014 /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, 2013, (the second quarter of Fiscal Year 2014).

Recent Highlights

  oIn November 2013, Unilife signed a long-term commercial supply contract
    withHikma PharmaceuticalsPLC ("Hikma") for the use of
    Unifill^®prefilled syringes with an initial list of 20 generic injectable
    drugs. Product sales toHikmawill commence in early calendar 2014, with
    a minimum 175MM units per year to be purchased following a high-volume
    ramp program. In addition to product sales,Unilifeexpects to receive
    $40 millionin upfront and milestone payments over the next two years.
    Unilife received the first payment of $5 million from Hikma during the
    second quarter of fiscal year 2014. Additional milestone payments have
    also been received during the third quarter of fiscal year 2014.
  oIn November 2013, Unilife signed an agreement withMedImmune, the global
    biologics arm of AstraZeneca, to customize and supply devices from its
    platform of wearable injectors for use with several target drug candidates
    from MedImmune's portfolio.Unilife is receiving regular payments from
    MedImmune under the contract.
  oIn December 2013, Unilife signed a contract with a global pharmaceutical
    company seeking to use Unilife's Ocu-ject™ delivery system to deliver a
    target injectable therapy into the eye. Revenue under the program is
    scheduled to commence during the third quarter of fiscal year 2014.
  oIn December 2013, Unilife signed an agreement with Novartis to supply
    clinical products from one of its platforms of injectable drug delivery
    systems for use with a targeted early stage pipeline drug. Unilife began
    to generate revenue under the Novartis under the program during the second
    quarter of fiscal year 2014. Additional payments are expected as the
    program continues this calendar year.
  oUnilife also continues to receive milestone payments and revenue from
    other customer programs. This includes $5 million in payments from Sanofi
    during the first quarter of fiscal year 2014, with an additional $5
    million being received during the current third quarter of fiscal year
    2014. In total, Unilife has invoiced for more than $20 million since the
    start of fiscal year 2014, with the majority of that cash having been
    received since November 2013.

Mr. Alan Shortall, CEO of Unilife, commented: "This has been a strong quarter
for Unilife, in which momentum continues to build. Many significant new
long-term contracts have been signed with leading pharmaceutical companies
including Novartis, MedImmune and Hikma. Milestone payments and revenue are
increasing as a result of our execution of these and other customer programs.
I expect this pace to continue as additional contracts progressively emerge
from our large, expanding commercial pipeline."

Financial Results for Three Months Ended December 31, 2013

Revenue for the three months ended December 31, 2013, was $3.6 million
compared to $0.7 million for the same period in 2012.

The Company's net loss for the three months ended December 31, 2013, was $16.3
million, or $0.17 per share, compared to a net loss of $14.6 million, or $0.19
per share, for the same period in 2012. Adjusted net loss for the three months
ended December 31, 2013, was $8.3 million, or $0.08 per share, compared to
$9.7 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 $6.7 million of total cash and cash equivalents, including
restricted cash, as of December 31, 2013. This does not include $6.2 million
in cash generated under the Company's ATM facility with Cantor Fitzgerald in
January 2014.

Conference Call Information

Management has scheduled a conference call for 4:30 p.m. U.S. EST on Monday,
February 3, 2014, (Tuesday, February 4, 2014 at 8:30 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                        Unilife
Communications       Partners        Corporation
P: + 1 212-682-6300       P: + 1                           P: + 61 2 8346 6500
     415-202-5678





UNILIFE CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(unaudited)
                                                                                                                            December31,2013   June30,2013
                                                                                                                            (inthousands,exceptsharedata)
Assets
Current Assets:
Cash and cash equivalents                 $           $      
                                                                                                                               4,314         5,736
Restricted cash        2,400               2,400
Accounts receivable                 2,748               654
Inventories           55                  71
Prepaid expenses and other current assets                                                                                   337                 409
Total current assets                                               9,854               9,270
Property, plant and equipment, net                               45,312              46,106
Goodwill                11,166              11,498
Intangible assets, net                         21                  23
Other                                                                                                                       652                 1,504
assets
Total assets                                          $           $     
                                                                                                                              67,005          68,401
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable                           $           $      
                                                                                                                               1,785         3,428
Accrued expenses                       3,577               2,444
Current portion of long-term debt                                   5,596               3,826
Deferred revenue                       —                   3,010
Total current liabilities                                     10,958              12,708
Long-term debt, less current portion                             19,560              20,045
Deferred revenue               10,068              50
Total liabilities                              40,586              32,803
Stockholders' Equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized as of December31, 2013;
                                                                                                                            —                   —
 none issued or outstanding as of December31, 2013 and June30, 2013
Common stock, $0.01 par value, 250,000,000 shares authorized as of December31, 2013;

 100,787,182 and 95,602,558 shares issued, and 100,758,512 and 95,573,888 shares                                        1,008               956

 outstanding as of December31, 2013 and June30, 2013, respectively
Additional paid-in-capital         286,735             268,157
Accumulated deficit                 (263,359)           (235,832 )
Accumulated other comprehensive income                                     2,175               2,457
Treasury stock, at cost, 28,670 shares as of December31, 2013 and June30, 2013,
                                                                                                                            (140 )              (140 )
 respectively
Total stockholders' equity   26,419              35,598
Total liabilities and stockholders' equity                                   $           $     
                                                                                                                              67,005          68,401





UNILIFE CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations and Comprehensive Loss

(unaudited)
                                  Three Months Ended      Six Months Ended
                                  December 31,            December 31,
                                  2013       2012         2013       2012
                                  (in thousands, except per share data)
Revenue                           $      $       $      $    
                                  3,573      699        6,760     1,391
Cost of product sales             —          22           —          81
Gross profit                      3,573      677          6,760      1,310
Operating expenses:
Research and development          7,807      4,994        14,206     9,732
Selling, general and              6,703      8,327        13,223     14,904
administrative
Depreciation and amortization     1,000      1,365        2,042      2,588
Total operating expenses          15,510     14,686       29,471     27,224
Operating loss                    (11,937)   (14,009)     (22,711)   (25,914)
Interest expense                  4,351      645          4,831      1,261
Interest income                   (5)        (14)         (11)       (38)
Other income, net                 —          —            (4)        —
Net loss                          (16,283)   (14,640)     (27,527)   (27,137)
Net loss per share:
Basic and diluted net loss per    $      $        $      $    
share                             (0.17)    (0.19)      (0.29)    (0.35)





UNILIFE CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Measure

(unaudited)
                                Three Months Ended    Six Months Ended
                                December 31,          December 31,
                                2013       2012       2013       2012
                                (in thousands, except per share data)
Net loss                        $        $        $        $  
                                (16,283)   (14,640)   (27,527)   (27,137)
Share-based compensation        2,635      2,963      5,271      4,518
expense
Depreciation and amortization   1,000      1,365      2,042      2,588
Interest expense                4,351      645        4,831      1,261
Adjusted net loss               $       $       $        $  (18,770)
                                (8,297)    (9,667)    (15,383)
Adjusted net loss per share -   $      $      $      $   
diluted                         (0.08)     (0.12)     (0.16)     (0.24)



SOURCE Unilife Corporation

Website: http://www.unilife.com
 
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