Support services, marketer and distributer of pharmaceuticals, chemicals, neutraceuticals, and crop protection products Aceto Corporation (NASDAQ:ACET) reported results for its fiscal 2010 second quarter (Q2 2010) and six months ended December 31, 2009 (H1 2010) this morning.
Net sales in Q2 2010 fell 4.5% to $70.9 million (Q2 2009: $74.2 million), while gross profits slipped 8.2% to $10.8 million (Q2 2009: $11.7 million) and SG&A expenses increased surged 36.5% to $14.2 million. Aceto blamed the unimpressive SG&A headline number on three one-off pre-tax charges, including a $0.9 million non-cash charge on inventory, a $1.2 million charge on a review of its SG&A and a $2.6 million charge related to compensation of the company’s former Chairman and CEO.
“As a result, we ended the fiscal 2010 second quarter with a net loss of $2.5 million, or ($0.10) per diluted share compared to net income of $1.1 million or $0.04 per diluted share in the 2009 quarter,” Aceto reported.
Net sales for H1 2010 were $141.5 million, a 15.8% drop from $168.1 million in H1 2009. H1 2010 gross profit also slumped 26.4% to $22.6 million (H1 2009: $30.7 million) and the company recorded a first half net loss of $1..5 million, or loss per diluted share of 6 cents (H1 2009: net profit $5.6 million, or 23 cents per diluted share).
"We are pleased that both an SG&A rationalization review and the review of our inventory by product line are now behind us. Had it not been for the charges resulting from these reviews, and the costs related to the Company's separation with its prior Chairman and CEO, we would have reported net income of $0.03 for the quarter and $0.07 for the six month period ending December 31, 2009. With these charges behind us, we are now able to move forward with a newly invigorated organization,” Albert Eilender, Non-Executive Chairman of Aceto stated.