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news.Synthetech, a fine chemicals company that develops and manufactures amino acid derivatives, specialty amino acids, peptide fragments and proprietary custom chiral intermediates, primarily for the pharmaceutical industry, has reported revenue of $4.2m for the fourth quarter, a 37% decrease from $6.6m for the same period last year.
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Operating income for the current quarter was $240,000, compared to $704,000 for the same period last year.
Net income was $199,000, or $0.01 per share, compared to $657,000, or $0.04 per share, in last year’s corresponding period.
Synthetech has reported revenue of $15.2m for fiscal 2010, a 23% decrease from revenue of $19.9m in fiscal 2009.
Operating income in fiscal 2010 was $1.4m, compared to operating income in fiscal 2009 of $1.3m. Net income for both fiscal 2010 and 2009 was $1.2m, or $0.08 per share.
Gregory Hahn, president and CEO of Synthetech, said: “The frail economy and an uncertain regulatory environment combined to make fiscal 2010 a challenging year for us and our industry. Consistent with the industry environment, Synthetech’s year-over-year revenue decreased 23% to $15.2m in fiscal 2010.
“However, with only 77% of its fiscal 2009 revenue, Synthetech achieved solid net income of $1.2m in fiscal 2010. This accomplishment was a direct result of our company-wide focus on cost reductions and production efficiencies, which enabled Synthetech to attain a level of profitability in fiscal 2010 on par with that of the previous year.
“Our backlog of $1.3m at March 31, 2010 reflects our customer’s short order timeframes, particularly in the current market environment. In fiscal 2010, our Hepatitis C drug franchise business accounted for 25% of revenue compared to 29% in the prior year.
“We believe that our Hepatitis C products are in a temporary quiet period as our customers work through their clinical trials before reaching reorder points. In addition to these products and large-scale projects from our traditional pharmaceutical markets, we also anticipate additional opportunities to produce new specialty chemicals.”