ALBANY, Ore., Aug. 6 /PRNewswire-FirstCall/ -- Synthetech, Inc. (OTC Bulletin Board: NZYM) today announced financial results for the first quarter of fiscal 2010, which ended June 30, 2009. Revenue for the quarter was $4.7 million, a 5% decrease compared to revenue of $4.9 million in the first quarter of fiscal 2009. Operating income for the current quarter was $1.0 million, compared to operating income of $314,000 for the same period last year. Net income for the current quarter was $969,000, or $0.07 per basic share, compared to last year's first quarter net income of $295,000, or $0.02 per share.
International sales, mainly to Europe, were $2.9 million and $2.6 million in the first quarters of fiscal 2010 and 2009, respectively. International sales, like all of Synthetech's revenues, are subject to significant quarterly fluctuations.
The improvement in fiscal 2010 first quarter net income on slightly lower sales is primarily the result of: a more favorable product mix; improved throughput and efficiencies; and raw material and other cost reductions. Additionally, gross income for the first quarter of fiscal 2009 was hindered by: lower than normal margins on certain products which encountered production difficulties in prior quarters; higher than average raw material costs on certain projects; and low margins on material purchased for direct resell. The first quarter of fiscal 2010 includes $224,000 of employee incentives compared to $41,000 in the comparable period of fiscal 2009. As a cautionary measure, in May 2009, Synthetech implemented a reduction in force and modified its shift schedules to reduce the cost of overtime pay. As a result of these changes, Synthetech incurred $53,000 of severance costs in the first quarter of fiscal 2010.
Synthetech's cash and cash equivalents were $3.1 million at June 30, 2009, compared to $588,000 at March 31, 2009. Synthetech'
|SOURCE Synthetech, Inc.|
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