COLUMBIA, Md., Dec 12, 2006 /PRNewswire-FirstCall via COMTEX/ -- Martek Biosciences Corporation (MATK : Martek Biosciences Corp) today announced its financial results for the fourth quarter and fiscal year ended October 31, 2006. For the fourth quarter of fiscal 2006 (4th Qtr 06), revenues of $67.2 million were achieved, a 20% increase compared to $56.0 million for the fourth quarter of fiscal 2005 (4th Qtr 05). During the 4th Qtr 06, the Company recorded a charge of $4.7 million ($3.0 million, net of income taxes or $0.09 per diluted share) which resulted from a restructuring of Martek's plant operations (See "Recent Highlights" below). For the 4th Qtr 06, including the effects of the restructuring charge, Martek generated net income of approximately $600,000, or $0.02 per diluted share, compared to net income of $4.9 million, or $0.15 per diluted share, for the 4th Qtr 05. For fiscal 2006 (FY 06), revenues of $270.7 million were achieved, a 24% increase over revenues of $217.9 million for fiscal 2005 (FY 05). For FY 06, Martek earned net income of $17.8 million, or $0.55 per diluted share compared to net income of $15.3 million or $0.48 per diluted share for FY 05.
Excluding the impact of the restructuring charge noted above and stock- option-based compensation expenses of approximately $600,000 and $3.3 million for the 4th Qtr 06 and FY 06 periods, respectively, the Company's net income on a non-GAAP basis would have been $4.0 million, or $0.12 per diluted share, for the 4th Qtr 06 and $22.9 million, or $0.71 per diluted share, for FY 06 (see "Reconciliation of GAAP to Non-GAAP Net Income Measure" below).
"While I am pleased with Martek's revenue growth this year of nearly 25% and our progress in growing our revenue base beyond the infant formula business, I recognize the need to continue to work to improve our gross margins. At year-end 2006, we took steps to improve our future manufacturing margins with the restructure of Martek's plant operations. Our attention is now focused on reducing our cost of ARA production. I am optimistic that we will continue to make progress in diversifying our customer base beyond the infant formula industry in 2007. We have begun to see the early stages of launches of new food and supplement products containing life'sDHA(TM). I believe that the current level of business development activities in the food and supplement areas will lead to even more and larger launches in 2007 and look forward to seeing a variety of products enriched with life'sDHA(TM) being made available to consumers of all ages," stated Steve Dubin, Chief Executive Officer of Martek.