IRVING, Texas, March 22 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc., (Nasdaq: CARN - News) reported record revenue of $30.8 million for the year ended December 31, 2004, with a pro forma profit of $3.1 million before funding of drug delivery technologies at the company's wholly-owned subsidiary, DelSite Biotechnologies, Inc.
After DelSite expenses of $3.8 million, which were partially offset by grant revenue of $767,000, net income for the year was $36,000, or $0.00 per basic and diluted share. In the year-ago period, after DelSite funding of $2.8 million, the company reported a net loss of $1.5 million, or a loss of ($0.15) per basic and diluted share on revenue of $29.1 million.
Cash and cash equivalents stood at $2.4 million at December 31, 2004.
For the fourth quarter ended December 31, 2004, revenue totaled $7.8 million compared to $6.7 million in the year-ago period, an increase of 15.8 percent. The increase was paced by an 18.8 percent sales gain in the consumer products division. Before DelSite funding of $952,000, Carrington recorded a pro forma profit of $708,000 for 2004's final quarter, compared to a pro forma loss of $282,000 before $799,000 of DelSite funding in the year-ago period. DelSite funding brought final net income in the quarter just ended to $213,000, or $0.02 per basic and diluted share, compared to a loss of $1.1 million, or ($0.10) per basic and diluted share, for the comparable year ago period.
"2004 was a pivotal year for Carrington," noted Carlton E. Turner, PhD, Carrington's chief executive officer. "We completed 11 consecutive quarters of revenue growth over the prior year's quarter. We achieved our plan of fully funding DelSite while keeping cash above $2 million and producing a small profit. In addition to increasing revenue in most all of our key product sectors, we cut company-wide operating expenses by nearly six percent."
"We also achieved significant milestones in furthering the development of DelSite's drug delivery technologies with the award of two U.S. grants, expansion of research facilities and the start of human clinical trials," Dr. Turner said.
On March 15, 2005, the company announced commencement of a Phase I human clinical trial of the nasal delivery technology for vaccines being developed by DelSite. Completion of the trial is expected in mid-May with the possibility of results being announced at the company's Annual Meeting on May 19, 2005.
In addition to the human clinical trial underway, DelSite completed the initial phase of a two-year U.S. Government biosecurity grant issued in early 2004 for development of a new platform to deliver vaccines. In October of 2004, Carrington was awarded a second U.S. grant, which provides $6 million over three years, to develop a nasally administered vaccine against H5N1, a virulent form of bird flu. DelSite has signed more than 25 confidentiality agreements with drug and biopharmaceutical companies regarding its drug delivery technologies.
In 2004 the company initiated laboratory expansions to double the size of DelSite's research facilities in Irving and at Texas A&M University. Two presentations of preclinical data evidencing the potential utility of the company's technologies for nasal delivery of vaccines and injectable delivery of peptides and proteins were also made, the first at the 1st International Conference on Influenza Vaccines for the World in May in Lisbon, Portugal and the second in June at the 31st Annual Meeting of the Controlled Release Society in Honolulu, Hawaii.
Presentation of these data helps create awareness of how DelSite's technologies have the potential to solve important drug delivery issues in the pharmaceutical and biopharmaceutical industries, the company said.
Carrington Laboratories, Inc., is an ISO 9001-certified, research-based biopharmaceutical and consumer products company currently utilizing naturally-occurring polymeric 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® and cosmetic raw material Hydrapol(TM). Carrington also manufactures and markets consumer products under the AloeCeuticals® brand and manufactures quality products for other companies. Manufacturing operations comply with cGMP standards. The Company's DelSite Biotechnologies subsidiary is developing its propriety GelSite(TM) technology designed to provide controlled release of peptide and protein-based drugs. Carrington's technology is protected by more than 126 patents in 26 countries. Select products are honored with the internationally coveted CE mark, recognized by more than 20 countries around the world. For more information, visit http://www.carringtonlabs.com.
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 10Q filed November 12, 2004.