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 fourth quarter and year ended June 30, 2010.
Net sales for the fiscal 2010 fourth quarter were $105.8 million, an increase of 41.4% from $74.8 million we reported in the year ago quarter. This represents the highest level of quarterly sales in Aceto's history. Prior to this quarter, the highest level of quarterly sales was $104.7 million achieved in the fiscal 2008 fourth quarter. Gross profit increased 34.4% to $15.7 million in the 2010 fiscal quarter compared to $11.7 million in the 2009 quarter. SG&A expenses decreased 3.6% to $10.3 million in the 2010 quarter compared to $10.7 million in the year ago comparable quarter. Net income increased 303.2% to $4.2 million, or $0.17 per diluted share, compared to $1.1 million or $0.04 per diluted share in the 2009 quarter.
Net sales for the year ended June 30, 2010 were $346.6 million, a 7.4% increase from $322.6 million for fiscal 2009. Gross profit for fiscal 2010 was $54.2 million, a decrease of 2.6% from $55.6 million in fiscal 2009. Net income was $6.6 million, or $0.26 per diluted share, for fiscal 2010. Fiscal 2010 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 $9.7 million, or $0.39 per diluted share for fiscal 2010, as compared to $8.6 million, or $0.35 per diluted share in fiscal 2009.
The Company is pleased with the results that we are reporting today. As we had anticipated, we had a strong quarter across the board which resulted in quarterly record sales of $105.8 million for the Company in the fourth fiscal quarter of 2010. During the fiscal fourth quarter, sales in our Health Sciences segment increased 10.3% from the 2009 comparable quarter, largely the result of increased sales across all business components of this segment. Sales in our Specialty Chemicals business segment increased 41.2% compared to the 2009 comparable quarter, largely 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 continued strength. Sales in our Crop Protection segment increased 293.7% from the 2009 comparable quarter, largely the result of sales of glyphosate which commenced in the third quarter of fiscal 2010.
With respect to our animal vaccine project, Vincent Miata stated, "We are still awaiting the USDA's decision regarding our permit application. We continue to reiterate that this is a regulatory review and there is no prescribed timetable for the USDA to make their final decision. Looking at our effort to sell finished dosage form generic drugs, we continue to introduce additional products from our external pipeline as the business remains a focus of ours."
The Board of Directors of Aceto Corporation also announced two changes in its senior management today. Albert Eilender has been named executive Chairman of the Board and Chief Executive Officer effective immediately. Concurrently, Vince Miata has been named President and Chief Operating Officer also effective immediately.
Mr. Eilender has served as non-Executive Chairman since October 2009, and been a member of Aceto's Board since December 1999. For approximately five years, Mr. Eilender served as the Lead Independent Director. Mr. Miata has served as the company's President since December 2008, and its CEO since October 2009.
The Board took this action to a) maximize utilization of its executive resources, and b) align the strengths of its executives with their key roles to facilitate growth and enhanced profitability. With the ever-increasing level of required internal and external activities, the Board believes that these changes will allow Mr. Miata to focus his skills and attention on the company's ongoing operations. This should significantly benefit Aceto's international, sales, marketing, and sourcing activities. As COO, Mr. Miata will continue to have all three Aceto business segments reporting to him.
As Chairman and CEO, Mr. Eilender will assume leadership for all aspects of Aceto Corporation. He will concentrate on strategic issues, long range planning and acquisition activity, while continuing to coordinate the Board of Directors' agenda, and investor relations. This management change is designed to sharpen the focus on all aspects of the company's business and to aid in developing a cohesive succession plan throughout the company's hierarchy.
Mr. Eilender said that "With the global economic conditions still unsettled, the Board felt that it was incumbent to put in-place and institute a more dynamic approach to seeking growth and profitability through pursuit of opportunities both from internal and external sources, while maintaining an unwavering concentration on the core business. Neither the business model nor the strategic direction of the company is anticipated to be altered as a result of this change. That said, the process for deciding where and how to utilize our resources will be more rigorous and structured."
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