KV Pharmaceutical Company Completes Unaudited Fiscal 2007 Results; Receives Trading Extension...(. Net earnings in fiscal 2006 (for the f...),Health

Date:2/15/2008

. Net earnings in fiscal 2006 (for the fiscal year ended March 31st, 2006) were reduced by a $30.4 million charge for in-process research and development associated with the acquisition of a development-stage product. Gross profit for fiscal 2007 totaled $296.4 million, or 66.8% of revenue, compared with $243.7 million, or 66.3% of revenue for the prior fiscal year.

During fiscal 2007, KV continued its previously announced investment in research and development to support the growth of its internal product pipeline. Research and development expenses increased to $31.5 million for fiscal 2007, compared to $28.9 million for fiscal 2006, an 8.9% increase. The Company expects the amount of its research and development expenses will increase between 40% and 50% during fiscal 2008 to support the development of important new products.

Selling, general and administrative expenses for fiscal 2007 increased 21.5% to $174.3 million, compared to $143.4 million for fiscal 2006. This increase was due primarily to additional personnel recruited for various levels within the organization throughout the year, promotional expenses to support the Company's existing brands, and to support the introduction of new products at both Ther-Rx and ETHEX during fiscal 2007.

The Company expects selling, general and administrative costs for fiscal 2008 to increase up to 25% over selling, general and administrative expenses for fiscal 2007. This income will allow for the continued expansion of existing products, the support of new product introductions, in particular, a branded product, Evamist(TM), as well as anticipated increased head count, legal, facilities and marketing expenses.

The Company reported a decrease in capital expenditures for fiscal 2007 to $25.1 million, compared to $58.3 million for fiscal 2006 and expects that trend from fiscal 2007 will continue during fiscal 2008.

Discussion of Fiscal 2007 Performance - Marketing Subsidiaries

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SOURCE KV Pharmaceutical Company Copyright©2008 PR Newswire. All rights reserved

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