Impax Laboratories Inc. (NASDAQ:IPXL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Impax Laboratories Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 28.85% to $0.37 in the quarter versus EPS of $0.52 in the year-earlier quarter.
Revenue: Rose 15.5% to $148.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Impax Laboratories Inc. reported adjusted EPS income of $0.37 per share. By that measure, the company beat the mean analyst estimate of $0.21. It beat the average revenue estimate of $128.85 million.
Quoting Management: In the first quarter 2013, the Company recorded an inventory reserve of $6.7 million as stated above. This charge was the result of a strategic review conducted by the Company with a third party consulting firm of the Company’s currently manufactured generic product portfolio. This review was completed during the first quarter 2013 and the Company decided to discontinue manufacturing a number of low-sales/low-margin mature products. The total net sales of these products in 2012 were less than 3% of the total Company product revenues, with minimal impact on net income. The Company is currently reviewing manufacturing costs and expects that the discontinuation of these products and other efficiencies will result in cost savings of approximately $10.0 million for the full year 2013, which has been reflected in the revised full year gross margin guidance.
“We expect that this decision will improve operating efficiencies and ensures that resources are allocated and aligned with our strategic growth priorities,” said Larry Hsu, Ph.D., president and CEO, Impax Laboratories, Inc. “We will continue to look for opportunities to free up resources that can be invested to best position Impax for a strong future.”
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