Aug 13 2009
Trimeris, Inc. (NASDAQ:TRMS) today announced financial results for the quarter ended June 30, 2009, reporting net income of $1.3 million, or $0.06 per share compared with $590,000, or $0.03 per share for the quarter ended June 30, 2008. This result was primarily driven by decreased operating expenses offset, in part, by decreased FUZEON sales and an increase in tax expense.
For the six months ended June 30, 2009, the Company reported net income of $3.4 million, or $0.15 per share, compared with $2.9 million, or $0.13 per share for the six months ended June 30, 2008.
Royalty revenue for the quarter ended June 30, 2009 was $2.1 million compared with $2.5 million for the quarter ended June 30, 2008. This decrease was driven by a decrease in net FUZEON® sales outside the U.S. and Canada. Net sales of FUZEON® outside the U.S. and Canada for the second quarter of 2009 were $19.4 million, down 13 percent from $22.2 million in the second quarter of 2008.
Collaboration income for the quarter ended June 30, 2009 was $1.4 million compared with $2.0 million for the quarter ended June 30, 2008. This decrease was primarily driven by a decrease in net sales of FUZEON® in the U.S and Canada offset, in part, by reduced selling and marketing expenses. Net sales of FUZEON® in the U.S. and Canada for the second quarter of 2009 were $9.7 million, down 39 percent from $16.1 million in the second quarter of 2008.
Operating expenses for the quarter ended June 30, 2009 were $1.7 million compared with $4.6 million for the quarter ended June 30, 2008. This decrease was primarily driven the company’s restructuring which eliminated all research and development functions and significantly reduced general and administrative personnel. In the second quarter of 2009, the Company entered into an agreement releasing the Company from $8.3 million in future lease obligations relating to an office and laboratory building formerly occupied by the Company. In connection with this transaction the Company paid a real estate commission of $496,000 which is recorded in operating expenses for the second quarter of 2009.
The income tax provision for the quarter ended June 30, 2009 was $735,000 compared with an income tax benefit of $194,000 for the quarter ended June 30, 2008. This increase was driven by an ownership change under Section 382 of the Internal Revenue Code of 1986, as amended, which occurred in December 2008. The effects of this ownership change were the imposition of a $457,000 annual limitation on the use of net operating loss carryforwards, tax credits and built-in loss items attributable to periods before the change. Earnings over the annual limitation will now be subject to corporate income taxes.
Cash, cash equivalents and investment securities available-for-sale totaled $34.3 million at March 31, 2009, compared to $31.6 million at December 31, 2008.
2009 Guidance
The Company updated its guidance that it expects its total operating expenses in 2009 to be in the range of $5.0 million to $6.0 million.
Earnings Conference Call
The Company announced today that it will not be conducting a conference call in connection with this earnings release.
www.trimeris.com