- 137% Increase in Revenues, 38% Gross Margin - Company Expects Net
Earnings for First Time in Fourth Quarter, with Earnings Building
Strongly in 2007 - Investors Conference Call Tuesday at 9:00 A.M.
EDT NEW YORK, Aug. 21 /PRNewswire-FirstCall/ -- Inyx, Inc.
(OTC:IYXI) (BULLETIN BOARD: IYXI) , a specialty pharmaceutical
company focused on niche drug delivery technologies and products,
reported today operating results for the second quarter and six
months ended June 30, 2006. The company also said it expects to
achieve net earnings for the first time in the fourth quarter of
2006. Inyx will hold a conference call for investors tomorrow
(Tuesday) morning at 9:00 a.m. EDT (see further down for
conference-call details). For the second quarter of 2006, revenues
reached $20.1 million, an increase of 137% over the $8.5 million
reported for the comparable quarter in 2005. The company reported a
net loss in the 2006 quarter of $9.8 million, or $0.20 per share,
compared to a net loss of $4.1 million, or $0.10 a share, in the
year-earlier period. The 2006 net loss includes approximately $2.0
million in non-cash depreciation and amortization charges as well
as $3.0 million in one-time cash expenses related to two pending
acquisitions, both expected to close in this third quarter. For the
first half of 2006, revenues totaled $41.6 million, a 272% increase
over the $11.2 million reported for the first six months of 2005.
The company reported a net loss in the 2006 half of $12.4 million,
or $0.26 per share, compared to a net loss of $11.1 million, or
$0.29 a share, in the year-earlier period. The 2006 first-half net
loss includes $3.9 million in non-cash depreciation and
amortization charges as well as the $3.0 million in one-time
expenses related to the pending acquisitions. Detailed financials
are presented in the company's Form 10-Q filed today, which can be
downloaded from Inyx's website. Jack Kachkar, M.D., Chairman &
CEO of Inyx, Inc., said, "The gross profit in the second quarter
was $7.6 million, equal to a gross margin of 38%. The increased net
loss was due mostly to the increased non-cash charges and the cash
expenses related to the pending acquisitions. We will incur
additional one-time, non-recurring expenses and related
restructuring charges in the third quarter, however, both
acquisitions should be accretive to Inyx once they are completed."
Two Pending Acquisitions Inyx reported that it expects to close by
September 30, 2006 its pending acquisition of a German
pharmaceutical production business from a pan-European specialty
pharmaceutical company, with which it is also entering into a
strategic, 10-year collaboration agreement, whereby Inyx will
become the exclusive manufacturing resource for the European
company's therapeutic products. These tandem transactions are
expected to add materially to Inyx's revenues and earnings,
starting during the 2007 year. On August 7, 2006, Inyx announced
that it signed a definitive agreement to acquire six eye-care
products from Advanced Medical Optics, Inc. This acquisition also
is expected to close shortly. Inyx will assign all the business and
marketing rights on these over-the-counter (OTC) products to its
wholly owned marketing subsidiary, Exaeris, Inc., and the products
will be distributed under the auspices of that subsidiary on a
worldwide basis -- expanding Exaeris into the global
non-prescription OTC pharmaceutical sector. One of the other
benefits of this acquisition is that five of the eye-care products
being acquired also can be produced in-house at Inyx, which should
further enhance their profit margins as well as increase capacity
utilization and, in turn, profitability of Inyx's manufacturing
business. Future Financial Guidance Inyx said it expects to achieve
net income for the first time in the fourth quarter of 2006, with
earnings and revenues building strongly in 2007. Revenues for 2006
are now expected to total in the $140 million range, down from a
previous target of $150 million because the German acquisition and
European collaboration will not commence until the fourth quarter
rather than the third quarter, as previously anticipated. Investors
Conference Call Inyx will conduct a conference call with investors
tomorrow (Tuesday) morning at 9:00 a.m. Eastern Daylight Time.
Investors in the U.S. should call the following toll-free number:
877-407-0782. Outside the U.S., investors should call:
201-689-8567. All callers should phone in by 10:55 a.m. EDT. The
call is also being webcast by Vcall, which can be accessed at
Inyx's website: http://www.inyxgroup.com/ or at
http://www.investorcalendar.com/. For those unable to access live,
a replay will be available to U.S. investors at the following
toll-free number: 877-660-6853; international investors should
call: 201-612-7415. All replay callers must dial-in account number:
286 and conference I.D.: 211233. The replay will be available
approximately two hours after the live call ends and run through
11:59 p.m. EDT on August 27, 2006. The webcast will be archived for
90 days on the two websites listed above. About Inyx Inyx, Inc. is
a specialty pharmaceutical company with niche drug delivery
technologies and products for the treatment of respiratory,
allergy, dermatological, topical and cardiovascular conditions.
Inyx focuses its expertise on both prescription and
over-the-counter pharmaceutical products, and provides specialty
pharmaceutical development and production consulting services. In
addition, Inyx is developing its own proprietary products. The
company's operations are conducted through several wholly owned
subsidiaries: Inyx USA, Ltd., based in Manati, Puerto Rico; Inyx
Pharma Ltd. and Inyx Europe Limited, which owns and operates Ashton
Pharmaceuticals Ltd., all near Manchester, England; Inyx Canada,
Inc. in Toronto; and Exaeris, Inc., based in Exton, Pennsylvania.
Inyx, Inc.'s corporate offices are in New York City. For more
information, please visit: http://www.inyxgroup.com/. Safe Harbor
Statements about Inyx's future expectations, including future
revenues and earnings, and all other statements in this press
release other than historical facts, are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, Section 21E of the Securities Exchange Act of 1934, and as
that term is defined in the Private Securities Litigation Reform
Act of 1995. The Company intends that such forward-looking
statements be subject to the safe harbors created thereby. Since
these statements involve risks and uncertainties and are subject to
change at any time, the Company's actual results could differ
materially from expected results. For more information, please
contact: Jay M. Green, Executive VP, 212-838-1111 Bill Kelly, VP
Investor Relations, 212-838-1111 INYX, INC. Consolidated Statement
of Operations (in thousands of U.S. dollars, except per share
amounts) For the Three Months Ended June 30, 2006 2005 (Unaudited)
Net revenues $20,142 $ 8,501 Cost of sales 12,528 5,864 Gross
profit 7,614 2,637 Operating expenses: Research and development 485
590 General and administrative 10,531 4,585 Selling 2,032 40
Depreciation 1,538 555 Amortization of intangible assets 443 362
Total operating expenses 15,029 6,132 Loss before interest,
financing costs and extraordinary item (7,415) (3,495) Interest and
financing costs 2,430 1,534 Extraordinary item, net of taxes - 917
Net loss $(9,845) $(4,112) Basic and fully diluted loss per share
before extraordinary gain $(0.20) $(0.12) Basic and fully diluted
income per share from extraordinary gain - 0.02 Basic and fully
diluted loss per share $(0.20) $(0.10) Weighted average number of
shares used in computing basic and fully diluted loss per share
amounts 49,529,321 39,983,983 INYX, INC. Consolidated Statement of
Operations (in thousands of U.S. dollars, except per share amounts)
For the Six Months Ended June 30, 2006 2005 (Unaudited) Net
revenues $41,554 $11,178 Cost of sales 25,639 8,399 Gross profit
15,915 2,779 Operating expenses: Research and development 1,167 947
General and administrative 15,261 6,426 Selling 3,274 174
Depreciation 3,052 716 Amortization of intangible assets 879 409
Total operating expenses 23,633 8,672 Loss before interest,
financing costs and extraordinary item (7,718) (5,893) Interest and
financing costs 4,720 6,146 Extraordinary item, net of taxes - 917
Net loss $(12,438) $(11,122) Basic and fully diluted loss per share
before extraordinary gain $(0.26) $(0.31) Basic and fully diluted
income per share from extraordinary gain - 0.02 Basic and fully
diluted loss per share $(0.26) $(0.29) Weighted average number of
shares used in computing basic and fully diluted loss per share
amounts 47,698,433 39,144,672 DATASOURCE: Inyx, Inc. CONTACT: Jay
M. Green, Executive VP, , or Bill Kelly, VP Investor Relations, ,
both of Inyx, Inc., +1-212-838-1111 Web site:
http://www.inyxinc.com/
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