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news.Anesiva has out-licensed all worldwide rights to its NF-kappa B decoy program, which includes the clinical drug candidate Avrina, to Transcription Factor Therapeutics.
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Fiscal 2009 Outlook
Saxelby concluded, I am very pleased with the progress we’ve made in the first half of fiscal 2009. Landauer’s performance demonstrates the success of our balanced approach to pursue new growth opportunities and continually invest in our core business. We are constantly evaluating potential prospects to expand our business offerings, and will act when the right opportunity, timing and costs are aligned. Overall, we believe the strength of our product and service offerings and the commitment to meet our customers’ needs coupled with the scalability of our business model and strong cash flows will continue to drive value for our shareholders.
Looking forward plan for fiscal 2009, the company currently anticipates aggregate revenue growth for the year to be in the range of 3 – 5%. The company currently anticipates a net income increase in the range of 6 – 8%, prior to considering the $1.8 million after-tax impact of the non-recurring pension curtailment and transition costs and management reorganization charges.
Fiscal 2009 Second Quarter Highlights
Gross profit grew 2 percent to $16.6 million on increased sales.
Recorded one-time charges of $2.7 million ($1.8 million after-tax, $0.19 per diluted share) for pension curtailment and transition and management reorganization.
Effective tax rate declined to 31 percent due primarily to changes in Illinois state tax law and favorable settlement of certain state tax liabilities.
Established multi-year agreement with Health Canada to supportcontinued implementation of InLight solution for radiation monitoring.
This quarter’s record financial results were solid, but were partially offset by the cost of actions we have taken to support continued execution on our strategic priorities of optimizing the core business, driving competitive growth, and pursuing strategic expansion, stated Bill Saxelby, president and chief executive officer of Landauer. Investments toward right sizing our long-term cost structure through an alternative retirement program and the reorganization costs required to strengthen key management positions are short-term investments that we believe will strengthen our core business for long-term success.
Completion of our current systems initiative is another required investment in the infrastructure necessary to support the continued growth of Landauer, Inc. We have completed a thorough assessment of the scope, timing and cost required to successfully implement our information technology systems initiative, with a goal to limit the risk to our continued strong financial execution. We estimate currently that the total project will cost $25 – $27 million and is targeted to be completed during calendar 2010.
Saxelby added, The continued acceptance of our InLight suite of products, success of our international expansion initiative and adoption of our offerings in the medical and nuclear markets affirm the strong long-term growth prospects for our business and the success of our focus on driving competitive growth. For example, during the quarter we placed InLight products in our 19th country and continued to foster our relationship with Health Canada, which is demonstrated by a multi-year agreement for approximately $8 million of additional InLight products to support their commitment to our OSL (Optically Stimulated Luminescence) technology for a breadth of monitoring solutions. We recognized approximately $1.6 million of revenue in the quarter from this relationship.