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Synthetech Reports Second Quarter Fiscal 2009 Results
Date:11/10/2008

(72) (742)

Income tax benefit - - - -

Net loss $(367) $(861) $(72) $(742)

Basic and diluted loss

per share $(0.03) $(0.06) $(0.00) $(0.05)

Dr. Gregory Hahn, President and CEO, stated, "We have yet to realize our goal of a return to profitable operations. However, we continue to make progress on cost improvements and manufacturing efficiencies."

Looking forward, Dr. Hahn further stated, "Synthetech's order backlog as of September 30, 2008, was approximately $5.7 million, with most of this expected to ship during the third quarter of fiscal 2009 and the balance during the fourth quarter of fiscal 2009. In October 2008, we received an order for a new project from a major pharmaceutical company for $1.3 million, which is scheduled to ship during the second and third quarters of fiscal 2010. Additionally, a few days ago we received a $5.4 million order from a major Western European pharmaceutical company for an ongoing project that is expected to ship before the end of fiscal 2009. We have been supporting this project as it advances through development phases for over two years and the customer has agreed to advance certain funds in support of the recent order."

Management anticipates that Synthetech's revenue will continue to be volatile from period to period. Variability in Synthetech's level of revenue is based primarily on its participation in large-scale customer projects and the timing of shipments arising from these projects. Synthetech operates in a challenging business environment, characterized by the unpredictable dynamics and life cycle of pharmaceutical projects, which can lead to rapid fluctuations in the mix of projects and revenues. As the uncertainties inherent in drug development projects remain outside of Synthetech's control, it is difficult to predict the progress, timing and reve
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SOURCE Synthetech, Inc.
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