Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Impax Laboratories Q3 Profit Jumps 76% But Falls Short Of Estimates 0 comments
    Nov 2, 2010 3:41 PM | about stocks: IPXL, TEVA
    Impax Laboratories (NASDAQ:IPXL), a pharmaceutical company based in Hayward, California, posted impressive growth for the third quarter but still fell short of analyst estimates. 

    On a GAAP basis, third quarter profits came in at $75.2 million, or $1.15 per diluted share, compared to $6.7 million, or $0.11 per diluted share in the prior year period.  GAAP revenue for the third quarter was $304 million. 

    But GAAP profits and revenue for the quarter was affected by an accounting change associated with the company’s contract with the generic drugs giant Teva (NASDAQ:TEVA).  The accounting change let the company recognize previously deferred revenue of $196.4 million during the third quarter that would have been recognized over the remaining life of the Teva agreement under prior standards. 

     Excluding accounting effects, third quarter profits totalled 15.8 million, or $0.24 per diluted share, compared to $9.0 million, or $0.15 per diluted share, in the prior year period.  Revenue, adjusted for the accounting change, was $107.6 million for the third quarter, up from $65 million for the year-ago period.  The 66% increase in adjusted revenue was driven by sales of the generic version of Adderall for which there were no sales in the third quarter of 2009. 

    On a segment basis, the company’s generic products division posted Q3 sales of $103.7 million, excluding the effects of the accounting change.  The brand name products division contributed sales of $3.9 million. 

    Despite the impressive growth, the third quarter results fell short of analyst estimates of 27 cents on revenue of $129.7 million.  The company’s shares were relatively unresponsive to the news, edging up by 0.8% to trade at $18.89 as of 1:10 ET.

    Disclosure: No Positions
    Themes: Pharmaceutical Stocks: IPXL, TEVA
Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.