November 5, 2014
By
Mark Terry
, BioSpace.com Breaking News Staff
Albany Molecular Research, Inc.
,
released
its third quarter fiscal report today, showing the New York company’s contract revenue increased by 8 percent to $57.5 million from 2013, money the firm will use to further shore up high-tech jobs in upstate New York.
The company is contributing $50 million toward a $250 million series of
laboratory facilities
at the Buffalo Niagara Medical Campus, part of a state of New York investment to drum up high-tech jobs. The state is investing about $50 million while an additional $200 million is tossed into the deal by private investors and participating companies like
AMRI
.
AMRI
first became involved in 2012, but finding the ideal location for the laboratories has dragged out for several years.
Total revenue for the third quarter was $62.5 million, an increase of 3 percent compared to total revenue of $60.8 million at this same time last year. Total revenue for the year to date is $190 million, an increase of 6 percent compared to $179.5 million for the nine-month period last year. Net loss under U.S. GAAP for this period this year is down $1.4 million, or $(0.05) per diluted share.
“The confluence of a business interruption event at our OsoBio facility, together with lower
Discovery
and
API
revenue has resulted in a weak third quarter,” said company President and CEO
William Marth
in a statement. “In our
Discovery
business, we saw lower fee-for-service work, while in our
API
business, timing of shipments impacted our results this quarter. Additionally, a weather-related power interruption at our OsoBio facility in Albuquerque took the facility offline for a period of time, contributing to the loss of finished product and the need to remediate one of the suites at the facility.”
As part of today’s financial report,
AMRI
indicates they expect full year contract revenue to be between $253 and $261 million, an increase at the midpoint of 22.4 percent, with royalty revenue staying the same at $25 million. Adjusted EBITDA is expected to increase by 7 percent at the midpoint to between $50 and $52 million. They’re projecting full year contract revenue for 2015 to be between $310 and $345 million, an increase of 27 percent at the midpoint.
“While we did not produce the results we expected this quarter, we remain confident in our outlook for the fourth quarter and 2015,” said Marth in a statement. “We have taken significant actions this year to enhance our operations and align our resources with our customers’ needs. Our DDS insourcing programs continue to generate significant interest and we continue to see high demand for our development services. In addition, demand for complex
API
and Drug Product manufacturing continues to significantly expand.”
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