EX-99 2 ex99_70486.htm EXHIBIT 99.1

News From
 

 

Buena, NJ 08310

 

Release Date: August 14, 2008

Exhibit 99.1
 

Contact:

Rajiv Mathur
 

President & Chief Executive Officer
 

IGI Laboratories, Inc.
 

856-697-1441 ext. 211
 

www.askigi.com
   

IGI LABORATORIES, INC. ANNOUNCES SECOND QUARTER RESULTS
 

BUENA, NJ August 14, 2008 - IGI LABORATORIES, INC. (AMEX: IG) a premier provider of topical formulation development, analytical, manufacturing and packaging services announces second quarter 2008 results.
 

Highlights:
 
 

•

We had positive cash flow from operations for second quarter 2008.
 

•

Our total revenues increased 14% in 2008 compared to first six months of 2007.
 

•

We entered into pharmaceutical development & manufacturing of products.
     

Economic factors weighed heavily on our results for the second quarter of 2008. We unfortunately experienced a decline in sales from several of our existing customers due to their loss of retail sales in the first half of 2008. Despite this decrease in sales, the Company continues to upgrade all aspects of our business as we become a premier provider of pharmaceutical products. We have increased our personnel; purchased additional manufacturing equipment and continued with our development of five pharmaceutical products. As mentioned in our two previous press releases, we have two new pharmaceutical customers for whom we will begin manufacturing product for in the fourth quarter of this year.
 

Six months ended June 30, 2008 Results
 

Total revenues increased by $261,000 for the six month period ended June 30, 2008 to $2,182,000, which represents an increase of 14% over revenues for the comparable period in 2007.
 

Cost of sales increased for the six month period ended June 30, 2008 as a result of the increased costs associated with the higher sales volume and the hiring of additional personnel. Products sold in 2008 had a slightly higher gross margin than those products sold in the comparable period in 2007; cost of sales as a percentage of product sales and research and development income was 65% for the six month period ended June 30, 2008 compared to 70% for the comparable period in 2007.
 

Selling, general and administrative expenses for six month period ended June 30, 2008 increased as a result of higher stock based compensation expense of $87,000 from the issuance of stock options to our CEO and higher employer match contribution in our 401k plan of $13,000 as a result of changing our 401k plan.
 

Product development and research expenses increased by $11,000 for the six month period ended June 30, 2008, or 5%, compared to the comparable period in 2007.
 

The company reported net loss of $(659,000) or $(.04) per share, for the six month period ended June 30, 2008 compared to a net loss of $(582,000), or $(.04) per share for the comparable period in 2007, which represents a 13% increase.

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Interest expense amounted to $6,000 (net of income) for the six month period ended 2008 compared to interest expense of $27,000 (net of income) in 2007. Interest expense decreased in 2008 as a result of a decrease in the Company's short term notes payable principal balance and a reduction in the Company's average interest rate on its short term notes payable in 2008.
 

The Company had positive working capital of $683,000 for the six months ended June 30, 2008 and a cash balance of $746,000 at June 30, 2008.
 

IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome® micro-vesicular delivery technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, controlled and sustained release as well as improved stability and greater ease of formulation.
 

This press release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts and statements identified by words such as "will," "possible," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" or words of similar meaning. These statements may contain, among other things, guidance as to future revenue and earnings, operations, prospects of the business generally, intellectual property and the development of products. These statements are based on our current beliefs or expectations and are inherently subject to various risks and uncertainties, including those set forth under the caption "Risk Factors" in IGI's most recent Annual Report on Form 10-KSB as filed with the Securities and Exchange Commission and as revised or supplemented by IGI's quarterly reports on Form 10-Q. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors or IGI's ability to implement business strategies. IGI does not undertake any obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.

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IGI LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share information)
(Unaudited)
 
 

Three months ended June 30,

  

Six months ended June 30,
 

 

 

2008

  

2007

  

2008

  

2007
 

 

 

 

                       

Revenues:

                      

    Product sales

$

477 

  

$

741 

  

$

1,777 

  

$

1,345 

    Research and development income

  

63 

    

211 

    

128 

    

288 

    Licensing and royalty income

  

142 

    

148 

    

277 

    

288 
 

 

 

 

        Total revenues

  

682 

    

1,100 

    

2,182 

    

1,921 
 

 

 

 

                       

Cost and expenses:

                      

    Cost of sales

  

563 

    

622 

    

1,244 

    

1,138 

    Selling, general and administrative expenses

  

697 

    

596 

    

1,360 

    

1,182 

    Product development and research expenses

  

123 

    

114 

    

236 

    

225 
 

 

 

 

Operating loss

  

(701)

    

(232)

    

(658)

    

(624)

Interest expense (net)

  

(3)

    

(8)

    

(6)

    

(27)

Other income

  

5 

    

64 

    

5 

    

64 
 

 

 

 

Loss from continuing operations

  

(699)

    

(176)

    

(659)

    

(587)

Gain from discontinued operations

  

- 

    

5 

    

- 

    

5 
 

 

 

 

Net loss

$

(699)

  

$

(171)

  

$

(659)

  

$

(582)
 

 

 

 

                       

Basic and Diluted Loss Per Share

                      

Continued operations net loss per share

$

(.05)

  

$

(.01)

  

$

(.04)

  

$

(.04)

Discontinued operations income per share

  

- 

    

- 

    

- 

  

$

- 
 

 

 

 

Net loss per share

$

(.05)

  

$

(.01)

  

$

(.04)

    

(.04)
 

 

 

 

                       

Weighted Average of Common Stock and
 Common Stock Equivalents Outstanding

                      

Basic and diluted

  

14,877,572 

    

14,612,899 

    

14,854,887 

    

13,997,904 
                       

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IGI LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share information)
 
 

June 30,
2008

  

December 31,
2007*
 

(unaudited)

    
 

 

           

ASSETS

          

Current assets:

          

    Cash and cash equivalents

  

$      746 

    

$      914 

    Accounts receivable, less allowance for doubtful accounts
      of $62 and $48 in 2008 and 2007, respectively

296 

666 

    Licensing and royalty income receivable

  

101 

    

356 

    Inventories

  

509 

    

376 

    Prepaid expenses and other current assets

  

132 

    

93 
   

   

        Total current assets

  

1,784 

    

2,405 

Property, plant and equipment, net

  

2,371 

    

2,410 

Restricted cash - long term

  

50 

    

50 

Other assets - long term

  

20 

    

- 

License fee, net

  

750 

    

800 
   

   

        Total assets

  

$   4,975 

    

$   5,665 
   

   

           

LIABILITIES AND STOCKHOLDERS' EQUITY

          

Current liabilities:

          

    Note payable - related party

  

$      250 

    

$      500 

    Accounts payable

  

544 

    

282 

    Accrued expenses

  

299 

    

419 

    Deferred income, current

  

8 

    

219 
   

   

        Total current liabilities

  

1,101 

    

1,420 

    Deferred income, long term

  

42 

    

45 

    Other long term liabilities

  

- 

    

60 
   

   

        Total liabilities

  

1,143 

    

1,525 
   

   

           

Stockholders' equity:

          

    Series A Convertible Preferred stock, $.01 par value,
      100 shares authorized; 50 shares issued and outstanding as of
      June 30, 2008 and December 31, 2007, respectively;
      Liquidation preference- $500,000

500 

500 

    Common stock, $.01 par value, 50,000,000 shares authorized;
      16,873,218 and 16,795,202 shares issued and outstanding as of
      June 30, 2008and December 31, 2007, respectively

  

168 

    

168 

    Additional paid-in capital

  

27,762 

    

27,411 

    Accumulated deficit

  

(23,203)

    

(22,544)

    Less treasury stock, 1,965,740 shares at cost

  

(1,395)

    

(1,395)
   

   

        Total stockholders' equity

  

3,832 

    

4,140 
   

   

        Total liabilities and stockholders' equity

  

$   4,975 

    

$   5,665 
   

   

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