Anika Therapeutics Inc. (NSDQ:ANIK) saw fourth-quarter profits plunge 36.3 percent as it paid for an acquisition and the relocation of some of its manufacturing operations to its Bedford, Mass., headquarters.
Anika, which makes cosmetic and tissue-repair products using hyaluronic acid technology, posted net income of $697,000 (or 6 cents per diluted share) on revenues of $10.6 million during the three months ended Dec. 31, 2009. That compares with net income of $1.1 million, or 10 cents per diluted share, on revenues of $9 million during Q4 2008.
The company cited a $1.2 million charge related to its acquisition of Fidia Advanced Biopolymers, a division of Italian pharma firm Fidia Farmaceutici SpA. Absent those expenses, adjusted net income would have been $2 million, or 17 cents per diluted share.
For the full year, Anika posted sales of $40.1 million, up 12.2 percent compared with $35.8 million during 2008. Annual net income grew 1.6 percent to $3.7 million, or 32 cents per share, compared with $3.6 million, or 32 cents per diluted share, during the prior year.
Selling, general and administrative expenses for the fourth quarter increased to $2.8 million from $2.5 million during Q4 2008. The company chalked the 12 percent increase up to higher costs for personnel, legal expenses and the manufacturing move to Bedford. The FAB acquisition and the move also hit cash and equivalents, leaving Anika with $24.4 million on hand as of Dec. 31, 2009, compared with $43.2 million at the close of 2008.