IRVING, Texas, May 12 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc., (Nasdaq: CARN - News) reported record revenue of $8.2 million for the quarter ended March 31, 2005, an increase of 11.5 percent over the year ago period.
Pro forma profit was $930,000 before accounting for $1.01 million of company funding of DelSite Biotechnologies, Inc., a wholly-owned subsidiary, which brought final net to a loss of ($80,000), or ($0.01) per basic/diluted share.
In the year ago quarter, the net loss was ($245,000), or ($0.02) per basic/diluted share, after accounting for direct DelSite funding of $853,000.
DelSite is dedicated to developing proprietary drug and vaccine delivery technology. Total funding of DelSite in the quarter, including grants from the US Government, was $1.3 million versus $883,000 a year ago. The 49.5 percent increase was primarily due to the ramping up of grant related activities and the expense of conducting a Phase I safety trial for its nasal delivery technology, which is currently underway.
The March 31 quarter marks the 12th consecutive quarter in which revenue increased over the same quarter the previous year.
"We are pleased with the current results and the outlook," said Carlton E. Turner, PhD, Carrington's chief executive officer. "Our core business is keeping pace with the increased funding requirements at DelSite, our cash position has improved, and we are awaiting results of the first human study of DelSite's novel nasal delivery technology."
Revenue at Carrington's Medical Services Division was $2.7 million in the quarter just ended, compared to $2.9 million a year ago, a decrease of 7.5 percent, mainly due to irregular ordering patterns by the Company's domestic distributor of wound care products.
The Consumer Services Division recorded revenue of $5.2 million versus $4.4 million in the year-ago period, an increase of 17.6 percent.
"We have greatly increased our capacity for product design and new business development for specialty manufactured products and we are forecasting gains for this sector during the balance of the year," Dr. Turner stated.
Commenting on DelSite, Dr. Turner said the company expects to file a Master Drug File (MDF) with the US FDA after successful completion of the Phase I clinical trial. "At that point we expect to begin partnering discussions for the nasal technology," he said.
The company previously indicated that DelSite's nasal and injectable delivery technologies are being evaluated under confidentiality agreements with more than 25 drug and biopharmaceutical companies.
The needle-less nasal technology is designed as an alternative to injections for vaccines, with initial potential applications being mass immunizations programs for treating pandemic diseases or biowarfare agents.
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® 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.
Non-GAAP Financial Information
This press release contains the non-generally accepted accounting principle financial measure of Pro Forma Profit. The amounts included in the calculation of this measure are computed in accordance with generally accepted accounting principles (GAAP). We believe this measure is useful to investors because it may provide users of this financial information with a meaningful measure of the Company's profitability before funding the research and development activities of its DelSite subsidiary. Pro Forma Profit is not a measure of financial performance under GAAP and thus should not be considered in isolation. Furthermore, it should not be seen as a substitute for metrics prepared in accordance with GAAP. Our reconciliation of this measure to net loss is included in the following tables.
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 10-K filed March 28, 2005.