Martek's inventory balance at quarter-end declined as compared to the
amount on-hand at the end of fiscal 2006 despite significant revenue growth
between years. The Company's significant cash generation allowed for
repayments on its credit facility totaling $36 million during fiscal 2007.
At the end of the quarter, Martek had $21.6 million in cash and had the
entire balance of its long-term revolving credit facility ($135 million)
available for future borrowing.
Significant Recent Events
-- Multi-Year Worldwide Sole Source Supply Agreement with Abbott -- In
October 2007, Martek announced that it had entered into a 10-year
supply agreement with Abbott Nutrition, a leading worldwide producer of
infant formula products including the Similac(R) Advance(R) brand,
under which Martek will serve as Abbott's exclusive worldwide DHA and
ARA supplier for all of Abbott's infant formula products. Under terms
of the agreement, Abbott has the right to terminate the arrangement as
of January 2012. Martek has been supplying Abbott with DHA and ARA for
use in infant formula products under a 25-year license agreement signed
in 2000 which remains in effect.
-- New Infant Formula Licensee -- In October 2007, Martek announced that
it had entered into a multi-year license and supply agreement with
Alter Farmacia, S.A. for the inclusion of Martek's arachidonic acid oil
in Alter's infant formula products that contain ARA and are sold in
Spain and Portugal.
-- Worldwide Distributor Agreement for Animal Feed Products -- In
November 2007, Martek announced that it
|SOURCE Martek Biosciences Corporation|
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