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Martek Announces Fourth Quarter and FY 2010 Financial Results
Date:12/8/2010

millions

LowHighTotal Revenue

$106.0

-

$110.0Nutritional ingredients:Infant formula

$68.5

-

$72.5Non-Infant formula

$12.5

-

$14.0Branded consumer health products

$20.0

-

$21.5Collaborations and contract manufacturing

Near $1.8** Includes approximately $0.8 million from the sale of final remaining contract manufacturing inventory.Consolidated gross margin in the first quarter of fiscal 2011 is expected to be between 52.5% and 53.5%.  First quarter 2011 diluted EPS is expected to be between $0.38 and $0.40.

During fiscal 2010, a key strategic objective for the Company was to begin the process of securing Martek's leadership position in supplying DHA and ARA to the infant formula industry for several more years beyond the then current supply agreements whose sole-source provisions expired at the end of 2011.   As noted above, we have been successful in achieving this objective through extensions of our sole-source supply arrangements with two of our larger infant formula customers in fiscal 2010, and we have also extended the sole-source supply agreement with a third large customer in December 2010 and anticipate making further progress in fiscal 2011. As previously disclosed, these extensions include graduated price reductions to our customers over the term of the extensions. Martek's strategy is to offset a significant portion of these price reductions that result from its infant formula contract extensions by implementing manufacturing cost savings and product innovation initiatives, and by growing its non-infant formula businesses.

For the full year fiscal 2011, we project consolidated revenue growth resulting from the impact of a full year of Amerifit ownership and growth of our branded ingredients business, partially offset by the effects of the price reductions included in the current and anticipated future infant formula supply agre
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SOURCE Martek Biosciences Corporation
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