Aceto third-quarter net sales up 24.5% to $99.3 million

Aceto Corporation (Nasdaq:ACET), a global leader in the sourcing, quality assurance, regulatory support, marketing and distribution of pharmaceuticals, nutraceuticals, specialty chemicals and crop protection products, today announced results of operations for its fiscal 2010 third quarter and nine months ended March 31, 2010.

Net sales for the fiscal 2010 third quarter were $99.3 million, an increase of 24.5% from $79.8 million in the year ago quarter. Gross profit increased 19.6% to $15.9 million in the 2010 fiscal quarter compared to $13.3 million in the 2009 quarter. SG&A expenses decreased 3.8% to $10.1 million in the 2010 fiscal quarter compared to $10.5 million in the year ago comparable quarter. Net income increased 98.5% to $3.8 million, or $0.15 per diluted share, compared to $1.9 million or $0.08 per diluted share in the 2009 quarter.

Net sales for the nine months ended March 31, 2010 were $240.9 million, a 2.8% decrease from $247.9 million for the fiscal 2009 comparable period. Gross profit for the first nine months of fiscal 2010 was $38.4 million, a decrease of 12.5% from $43.9 million in the fiscal 2009 comparable period. Net income was $2.3 million, or $0.09 per diluted share for the first three quarters of fiscal 2010. The fiscal 2010 nine month period has been negatively impacted by three one-time, pre-tax, charges which were reflected in the fiscal 2010 second quarter results and were discussed in that quarter's results release. Had it not been for these charges, we would have reported net income of $0.22 for the nine month period ending March 31, 2010, as compared to $7.6 million, or $0.30 per diluted share in the fiscal 2009 comparable period.

Commenting on the Company's third quarter performance, Vincent Miata, CEO & President of Aceto stated, "We are pleased with the results that we have reported this morning. During our second quarter conference call, we had indicated that we had been seeing some encouraging signs that demand in some of our business segments was beginning to show signs of recovery. The results that we have reported today, with increased sales across all of our business segments, gives us encouragement that an upturn in our business is at hand. During the quarter, sales in our Health Sciences segment increased 16.4% from the comparable quarter as a result of increased sales across all business components of this segment.  In our Specialty Chemicals segment, sales increased 22.6% on the same quarter comparison, the result of increased sales in both domestic and international markets. Sales of products used in surface coatings and in the food, beverage and cosmetics industries all showed marked improvement.  Sales in our Crop Protection segment increased 95.9% from the same quarter last year, primarily due to sales of glyphosate which commenced during the third quarter. With regard to the previously filed glyphosate anti-dumping petition, the Company had been reviewing its options and strategy going forward, however, the United States International Trade Commission announced on April 29^th that the petitioner had withdrawn the application. Aceto continues to believe that this product offers us opportunities now and in the future and is pleased with this outcome."

"Updating the current status of Aceto's animal vaccine project, we are still awaiting the USDA's decision regarding our permit application to import our supplier's canine vaccine with authorization for its distribution and sale in the United States. We continue to reiterate that this is a regulatory review and there is no prescribed timetable for the USDA to make their final decision. With regard to our effort to sell finished dosage form generic drugs, we continue to introduce new products from our pipeline and the initiative continues to be a focus."  

Mr. Miata continued, "As we have previously discussed, over the past several months we have restructured the way Aceto manages its operations into more of a vertically integrated, global team matrix built around each of our business segments. This realigned management structure is beginning to take hold and we believe that Aceto is well positioned for future growth."

DIVIDEND

Aceto also announced that its Board of Directors declared a regular, semi-annual dividend of $0.10 per common share which will be distributed on June 25, 2010 to shareholders of record as of June 14, 2010.