10-Q 1 a07-18938_110q.htm 10-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2007

o

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                    to

Commission File Number 000-21326

Anika Therapeutics, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Massachusetts

 

04-3145961

(State or Other Jurisdiction of

 

(I.R.S. Employer Identification No.)

Incorporation or Organization)

 

 

 

 

 

160 New Boston Street, Woburn, Massachusetts

 

01801

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (781) 932-6616

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report.

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. Yes x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definitions of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Securities Exchange Act. (Check One):

o Large accelerated filer                             x Accelerated filer                         o Non-accelerated filer

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o   No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date. At July 25, 2007 there were 11,129,959 outstanding shares of Common Stock, par value $.01 per share.

 



PART I: FINANCIAL INFORMATION

ITEM 1: FINANCIAL STATEMENTS

Anika Therapeutics, Inc. and Subsidiary

Consolidated Balance Sheets

(unaudited)

 

 

June 30,

 

December 31,

 

 

 

2007

 

2006

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

44,751,227

 

$

47,167,432

 

Short-term investment

 

3,515,949

 

—

 

Accounts receivable, net of reserves of $49,724 at June 30, 2007 and December 31, 2006

 

6,751,264

 

3,509,508

 

Inventories

 

5,537,691

 

5,395,596

Current portion deferred income taxes

 

1,312,901

 

1,312,901

 

Prepaid expenses and other receivables

 

427,665

 

220,445

 

Total current assets

 

62,296,697

 

57,605,882

 

Property and equipment, at cost

 

16,054,707

 

13,255,240

 

Less: accumulated depreciation

 

(10,573,883

)

(10,237,232

)

 

 

5,480,824

 

3,018,008

 

Long-term deposits and other

 

399,300

 

193,050

 

Deferred income taxes

 

7,484,459

 

7,296,689

 

Total Assets

 

$

75,661,280

 

$

68,113,629

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,616,131

 

$

965,180

 

Accrued expenses

 

1,496,690

 

1,573,835

 

Deferred revenue

 

3,135,718

 

2,905,099

 

Income taxes payable

 

264,257

 

17,253

 

Total current liabilities

 

7,512,796

 

5,461,367

 

Other long-term liabilities

 

305,195

 

64,525

 

Long-term deferred revenue

 

17,499,712

 

17,099,712

 

Commitments and contingencies (Note 8)

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

Preferred stock, $.01 par value; 1,250,000 shares authorized, no shares issued and outstanding at June 30, 2007 and December 31, 2006

 

—

 

—

 

Common stock, $.01 par value; 30,000,000 shares authorized, 11,128,703 shares issued and outstanding at June 30, 2007, 10,772,654 shares issued and outstanding at December 31, 2006

 

111,287

 

107,727

 

Additional paid-in-capital

 

39,549,132

 

37,262,768

 

Retained earnings

 

10,683,158

 

8,117,530

 

Total stockholders’ equity

 

50,343,577

 

45,488,025

 

Total Liabilities and Stockholders’ Equity

 

$

75,661,280

 

$

68,113,629

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.

2



Anika Therapeutics, Inc. and Subsidiary

Consolidated Statements of Operations

(unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

2007

 

2006

 

2007

 

2006

 

Product revenue

 

$

6,331,966

 

$

7,115,484

 

$

11,706,004

 

$

13,381,318

 

Licensing, milestone and contract revenue

 

767,596

 

682,557

 

1,531,604

 

1,369,684

 

Total revenue

 

7,099,562

 

7,798,041

 

13,237,608

 

14,751,002

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of product revenue

 

3,023,781

 

2,890,904

 

5,516,703

 

5,938,722

 

Research & development

 

996,051

 

1,129,877

 

1,843,392

 

2,206,669

 

Selling, general & administrative

 

1,716,099

 

1,976,600

 

3,291,149

 

3,765,599

 

Total operating expenses

 

5,735,931

 

5,997,381

 

10,651,244

 

11,910,990

 

Income from operations

 

1,363,631

 

1,800,660

 

2,586,364

 

2,840,012

 

Interest income, net

 

575,831

 

489,772

 

1,142,608

 

950,846

 

Income before income taxes

 

1,939,462

 

2,290,432

 

3,728,972

 

3,790,858

 

Provision for income taxes

 

574,611

 

938,367

 

1,163,344

 

1,558,043

 

Net income

 

$

1,364,851

 

$

1,352,065

 

$

2,565,628

 

$

2,232,815

 

Basic net income per share:

 

 

 

 

 

 

 

 

 

Net income

 

$

0.12

 

$

0.13

 

$

0.23

 

$

0.21

 

Basic weighted average common shares outstanding

 

11,018,053

 

10,601,336

 

10,949,629

 

10,564,902

 

Diluted net income per share:

 

 

 

 

 

 

 

 

 

Net income

 

$

0.12

 

$

0.12

 

$

0.23

 

$

0.20

 

Diluted weighted average common shares outstanding

 

11,376,673