Synthetech Inc. on Wednesday reported significant boost in both fourth-quarter revenue and earnings.
Albany-based Synthetech (OTCBB: NZYM), a fine chemicals company, reported earnings of $657,000, or 4 cents per share, on $6.6 million in sales. A year earlier it had earnings of $113,000, or 1 cent per share, on $4.6 million in sales.
For full-year fiscal 2009, the company had earnings of $1.2 million, or 8 cents per share, on $19.9 million in sales. The prior year it lost $1.2 million, or 8 cents per share, on $14.6 million in sales.
The bulk of the revenue growth was generated by repeat orders from major pharmaceutical companies for clinical studies.
The company ended the fiscal year with a healthy balance sheet.
While its cash on hand as of March 31 fell to $588,000, compared with $1.1 million from the same time last year, its working capital increased to $5.9 million from $4.4 million due to the year-end growth in net income. It has no outstanding borrowings, while last year it still owed $905,000.
CEO Gregory Hahn said the current economic downturn has had no negative effect on the company, which has reported three straight years of revenue growth.
But the outlook could be getting gloomier.
The biopharmaceuticals market is showing some weakness, Hahn said, and a difficult financing environment could impair drug development projects. Meanwhile, some major pharmaceutical companies are reducing their outsourcing expenses.
“Both of these issues also impact our contract drug synthesis market where our traditional peptide building block products are sold,” Hahn said in a news release.
Regardless, the company continues to receive orders and thus far is unable to determine what impact the weakened economy will have on its 2010 results.
“Despite these challenging economic and market conditions, we remain guardedly optimistic as we enter fiscal 2010,” Hahn said.
Synthetech shares closed up 11 percent Wednesday to $1 per share. It has a 52-week range between 40 cents and $1.20.
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