闖蕩華爾街
有多少愛可以重來 有多少人值得等待 因我自橫刀向天笑 故我自立馬冷眼瞧
AAPL
Apple profit up 15 pct, helped by iPhones, laptops
Apple fiscal 3Q profit rises 15 percent as 5 million iPhones get sold in 3 months
SEATTLE (AP) -- Apple Inc., the closest thing the tech industry has to a luxury brand, said Tuesday its profit jumped 15 percent in the most recent quarter despite the recession. IPhone revenue surged and reduced prices pushed laptop sales higher, even as the rest of the PC industry shrank.
The company, which recently welcomed CEO and co-founder Steve Jobs back from medical leave, said earnings in the quarter that ended June 27 rose to $1.23 billion, or $1.35 per share. Apple's profit was $1.07 billion, or $1.19 per share, in the same period last year.
Sales increased 12 percent to $8.34 billion from $7.46 billion in the year-ago quarter, which is the third in Apple's fiscal calendar.
Apple beat Wall Street's forecast on both counts, which helped send its stock higher in extended trading. Analysts were expecting Apple to earn $1.17 per share on $8.20 billion in revenue, according to a Thomson Reuters survey.
"In a better economy I think we would have sold even more," Apple Chief Financial Officer Peter Oppenheimer said in an interview.
Apple said it sold more than 5.2 million iPhones in the quarter, more than seven times what it sold in the 2008 quarter, thanks in part to a newly released version of the device.
Apple also sold 4 percent more Mac computers than a year ago, with a 13 percent rise in laptop unit sales offsetting a 10 percent drop in desktops. Meanwhile, researchers recently reported a 3 percent to 5 percent decline for the overall worldwide PC market in the same period.
Apple's decision to cut laptop prices during the quarter helped Apple buck the industry trend, even though the move dragged laptop revenue down 2 percent. Tim Cook, Apple's chief operating officer, said Mac sales picked up after the company announced the cuts, its first major price reductions in the recession.
Cook said laptop revenue was also hurt as businesses that typically buy more expensive models continued to put off technology spending. Other computer makers, such as Dell Inc., have also said customers are holding on to their existing machines for longer than normal.
The main weak spot was Apple's iPod line. Even though iPod Touch sales more than doubled, total iPod unit sales fell 7 percent as sales of what Apple considers its traditional MP3 players -- iPod Classic, Nano and Shuffle -- dropped. Oppenheimer told analysts on a conference call that such declines are to be expected as Apple "cannibalizes" iPod sales by offering similar features on the iPhone -- the cheapest of which is now $99, plus a monthly service contract.
Apple's revenue increased in every region, including the U.S. and Europe. Average revenue in each of Apple's retail stores was $5.9 million, lower than the $6.8 million Apple reported at the same time last year.
Shares of Cupertino, Calif.-based Apple jumped $6.52, or 4.3 percent, to $158.03 in after-hours trading, after slipping 91 cents to close at $151.51.
For the current fourth quarter, Apple said it expects to earn $1.18 to $1.23 per share on $8.7 billion to $8.9 billion in sales. Analysts are looking for a stronger performance -- profit of $1.30 per share on revenue of $9.1 billion -- but Apple's guidance is typically conservative.
YHOO
Yahoo 2Q profit up 8 pct, yet ad slump continues
Yahoo's second-quarter profit climbs 8 percent as cost-cutting offsets slumping ad sales
SAN FRANCISCO (AP) -- Yahoo Inc. eked out a slightly higher profit in the second quarter as its new, no-nonsense chief executive cut enough expenses to shake off the Internet company's sharpest drop in ad revenue since the dot-com bust.
The worsening ad slump overshadowed Yahoo's first quarterly earnings increase since the start of 2008, causing the company's shares to fall more than 4 percent after the results were released Tuesday.
The higher profit nevertheless suggested Yahoo CEO Carol Bartz is making some progress toward snapping the Sunnyvale-based company out of its financial funk -- the main reason she was hired six months ago.
Since her arrival, Bartz has been focused on identifying Yahoo's strengths and weaknesses, weeding out bureaucracy and cutting deeper into a payroll that had already begun to thin under her predecessor, company co-founder Jerry Yang.
Yahoo ended the quarter with 13,000 employees, down 9 percent from 14,300 workers at the same time last year. That enabled the company to lower its cash expenses by about 25 percent, excluding severance costs, said Tim Morse, a cost-cutting specialist whom Bartz recently hired as Yahoo's chief financial officer.
"The quarter was a mixed bag, but I am pleased we could control the things that we could control -- and that was the cost side of the equation," Morse said in an interview Tuesday.
Yahoo plans to loosen its purse strings in the second half of the year to promote its brand and hire more workers in key technology areas, Morse told analysts in a conference call. He emphasized the expenses would not rise back to the levels they were last year.
"We will be disciplined where we spend our time and money," he said.
Yahoo made $141.4 million, or 10 cents per share, in the three months ending in June. That was up from income of $131.2 million, or 9 cents per share, last year.
Analysts surveyed by Thomson Reuters had predicted Yahoo would earn 8 cents per share.
Revenue for the period slid 13 percent to $1.57 billion. That's the biggest decline so far in a slump that has seen Yahoo fall further behind Internet search leader Google in the online ad market.
By contrast, Google's revenue rose 3 percent to $5.5 billion in the second quarter.
After subtracting commissions paid to its advertising partners, Yahoo's revenue stood at $1.14 billion. That matched analyst projections.
The results came as Yahoo unveiled a new home page in a long-promised makeover meant to make it easier to see what's happening at the Internet's other hot spots. The idea is to help Yahoo recapture some of the buzz it has lost to increasingly popular online hangouts like Facebook, MySpace and Twitter.
Yahoo shares slid 71 cents, or nearly 4.2 percent, in extended trading Tuesday after the results were released. Earlier, it finished the regular session down 26 cents at $16.75.
AMD
AMD 2Q sales slump 13 pct, shares dive
AMD 2Q sales slump 13 pct, not as bad as Wall Street feared, but stock sinks
SAN FRANCISCO (AP) -- Advanced Micro Devices Inc. narrowed its loss in the second quarter, even though sales at the chip company slumped 13 percent.
The revenue decline reported Tuesday wasn't quite as severe as Wall Street had feared. One bright spot was slightly better sales of graphics chips. But falling microprocessor sales overshadowed it. The loss exceeded forecasts, and AMD shares plunged 12 percent in extended trading.
The results demonstrated that the beginnings of a turnaround in the personal computer market, which appears to be benefiting rival Intel Corp., isn't buoying AMD in the same way.
AMD has struggled for two years to return to profitability, losing billions of dollars in the process. Tuesday's numbers show AMD has some kinks to work out before it's able to pull off a full recovery.
One troubling sign: AMD's gross profit margin is shrinking, while Intel's is improving. Gross margin is critical for chip makers because it reflects how well they're controlling costs.
AMD, the world's No. 2 maker of computer microprocessors after Intel, lost $330 million, or 49 cents per share, in the second quarter. In the same period last year, it lost $1.2 billion, or $1.97 per share.
AMD says its loss was 62 cents per share, when a one-time gain is stripped out. On that basis, analysts had predicted a loss of 47 cents per share, according to Thomson Reuters.
Sales fell to $1.18 billion. Analysts were expecting $1.13 billion.
AMD shares fell 48 cents to $3.60 after the earnings report was released. The stock had closed regular trading at $4.08, down 2.2 percent on the day.
AMD is in the process of a major transformation: It recently spun off its manufacturing arm with the help of the Abu Dhabi government, forming a new company called GlobalFoundries. It was an admission that AMD couldn't keep up with Intel in the race to build costly, cutting-edge chip factories.
AMTD
TD Ameritrade 3Q net income down 17 percent
Brokerage TD Ameritrade says 3Q net income down 17 percent but still ahead of expectations
OMAHA, Neb. (AP) -- Online brokerage TD Ameritrade Holding Corp. said Tuesday its third-quarter net income fell nearly 17 percent as low interest rates continued to restrict its revenue, but the results exceeded Wall Street expectations.
TD Ameritrade said the low interest-rate environment reduced the amount of interest revenue the company collects even though trading figures remained strong.
The Omaha-based company said it generated $170.5 million in net income, or 30 cents per share, in the quarter that ended June 30. A year ago, Ameritrade reported $204.4 million in net income, or 34 cents per share.
Without unusual items, TD Ameritrade would have earned 33 cents per share. The company said the unusual items included a special regulatory assessment paid to the FDIC, a payment on its past acquisition of Options 360 and a write-off of some software-development costs. Options 360 is a trading tool that helps investors research and analyze potential trades and manage options positions.
Analysts surveyed by Thomson Reuters expected TD Ameritrade to report earnings per share of 29 cents on $580.5 million in revenue.
TD Ameritrade shares gained 90 cents, or 5.1 percent, to sell for $18.62 in afternoon trading on Tuesday.
TD Ameritrade CEO Fred Tomczyk said he thinks the results show the company's strategy is working even in this challenging environment. Company officials have emphasized that they want TD Ameritrade to be ready to excel when markets improve.
"We are positioned to come out of the cycle an even stronger company with an improved competitive position, something we have been and continue to focus on as a management team," Tomczyk said.
FBR Capital Markets analyst Matt Snowling said the results show TD Ameritrade is executing on its strategy well. But he said in a research note that the company's earnings may decline in future quarters because trading typically slows in late summer.
Ameritrade said it generated $613.8 million revenue in the third quarter. That's down about 2 percent from $623.6 million last year.
Ameritrade says it handled an average of 391,506 trades per day in the quarter, up from 287,349 trades per day a year ago. That drove transaction-based revenue up 36 percent to $338.5 million in the third quarter.
But the Federal Reserve's interest-rate cuts drove a 28 percent drop in TD Ameritrade's asset-based revenue, which fell to $262.8 million.
TD Ameritrade also completed its $606 million acquisition of options-trading specialist thinkorswim during the quarter.
Credit Suisse analyst Howard Chen said in a research note that TD Ameritrade posted a solid quarter highlighted by strong engagement from retail traders.
Tomczyk said the surge in trading helped TD Ameritrade, but the company has also been aggressive about going after new customers. Through the first nine months of fiscal 2009, the company has boosted advertising by $10 million, to $139 million.
"We have taken advantage of the dislocation in the market as well or better than anyone," Tomczyk said in an interview.
That translated into the $6.9 billion in net new assets and 176,000 new accounts that TD Ameritrade reported in the quarter. A year ago, the company reported $4 billion in net new assets and 148,000 new accounts.
The company held $265 billion in total client assets in 7.5 million accounts at the end of the quarter. The total assets grew 18 percent in the quarter.
On Monday, TD Ameritrade agreed to purchase $456 million in auction-rate securities from investors as part of a settlement with government investigators.
The auction-rate securities market involved investors buying and selling instruments that resembled corporate debt whose interest rates were reset at regular auctions, some as frequently as once a week. They were sold as being as safe as cash, but the market for them fell apart in early 2008 amid the downturn in the credit markets.
TD Ameritrade said Tuesday it expects those buybacks to depress its fiscal fourth-quarter earnings per share by 5-to-10 cents. But in the long run, CFO Bill Gerber said he does not expect the securities to affect the company's earnings materially.
TD Ameritrade still faces several lawsuits related to auction-rate securities that won't be resolved by the repurchase plan alone.
The company said it finished the third quarter with $1.12 billion in liquid assets. A portion of that will be used to finance the purchases of auction-rate securities, but Tomczyk said he's confident TD Ameritrade could still finance an acquisition if it found an attractive target.
Through the first nine months of TD Ameritrade's fiscal year, the company reported $487 million net income, or 83 cents per share. That's 23 percent lower than a year ago when TD Ameritrade reported $632 million net income, or $1.05 per share.
GILD
Gilead profit rises 31 pct, but shares dip
* Net profit 61 cents per share
* Beats analysts' estimate by 4 cents per share
* Revenue increases 29 pct to $1.65 billion
* Shares fall more than 4 percent after hours (Adds analyst comment, updates share price)
By Deena Beasley
LOS ANGELES, July 21 (Reuters) - Gilead Sciences Inc (GILD.O) said on Tuesday its quarterly profit rose 31 percent on higher sales of its drugs to treat the virus that causes AIDS, but some sales went to inventory, and the company's shares fell more than 4 percent after hours.
Gilead also slightly raised its forecast for 2009 product sales, but said expenses would also increase.
"They did beat, but there was inventory build-up," said Jefferies & Co analyst Eun Yang. "Also, they increased the guidance, but only by about 3 percent -- the consensus is currently higher."
Chief Financial Officer Robin Washington said on a conference call that wholesale inventories of HIV drugs Atripla and Truvada increased during the second quarter and "may decrease in second-half 2009."
Gilead posted a second quarter net profit of $571.4 million, or 61 cents per share, compared with $434.8 million, or 45 cents per share, a year earlier.
Excluding acquisition-related expenses and restructuring costs, Gilead earned 65 cents a share during the quarter, topping analysts' average estimate of 61 cents a share according to Reuters Estimates.
"These are pretty strong results, a more than 10 percent beat," said Morgan Joseph managing director Shiv Kapoor. "Gilead's current revenue, Gilead's current HIV franchise continues to be very strong, much stronger than folks' expectation."
Quarterly revenue rose 29 percent to $1.65 billion and product sales rose 29 percent to $1.57 billion.
For the full year, the CFO said Gilead now expects product sales of $6.1 billion to $6.2 billion, up from its previous estimate of $5.9 billion to $6.0 billion. Wall Street is projecting full-year sales of $6.24 billion, Yang said.
Washington also forecast 2009 research and development costs of $850 million to $870 million, compared with a previous range of $800 million $820 million, and said sales and administrative costs are likely to total $810 million to $830 million -- up from $720 million to $740 million.
Second-quarters sales of Atripla, which combines Gilead's Truvada with Bristol-Myers Squibb Co's (BMY.N) Sustiva into a single pill, totaled $569 million, exceeding the Wall Street consensus of $547 million, as compiled by Deutsche Bank analyst Mark Schoenebaum.
Royalty, contract and other revenue rose 29 percent to $78.8 million. Gilead gets much of its royalty revenue from Roche Holding AG's (ROG.VX) sales of the Tamiflu flu treatment.
Shares of Gilead, which rose 1.2 percent to close at $48.55 on Nasdaq before the earnings announcement, fell to $46.40 after hours.
- Record Total Revenues of $1.65 Billion, Up 29 Percent over Second Quarter 2008 -
- Record Product Sales of $1.57 Billion, Up 29 Percent over Second Quarter 2008 -
- Second Quarter EPS of $0.61 per Share -
- Second Quarter Non-GAAP EPS of $0.69 per Share
FOSTER CITY, Calif.--(BUSINESS WIRE)--Gilead Sciences, Inc. (Nasdaq:GILD - News) announced today its results of operations for the quarter ended June 30, 2009. Gilead’s operating results include the results of CV Therapeutics, Inc. (CV Therapeutics) beginning on the acquisition date of April 15, 2009. Total revenues for the second quarter of 2009 were $1.65 billion, up 29 percent compared to total revenues of $1.28 billion for the second quarter of 2008. Net income attributable to Gilead for the second quarter of 2009 was $571.4 million, or $0.61 per diluted share. Net income attributable to Gilead for the second quarter of 2008 was $434.8 million, or $0.45 per diluted share. Non-GAAP net income attributable to Gilead for the second quarter of 2009, which excludes after-tax acquisition-related expenses, restructuring expenses and stock-based compensation expenses, was $648.9 million, or $0.69 per diluted share. Non-GAAP net income attributable to Gilead for the second quarter of 2008, which excludes after-tax stock-based compensation and purchased in-process research and development (IPR&D) expenses of $34.2 million, was $469.0 million, or $0.48 per diluted share.
Product Sales
Product sales increased 29 percent to a record $1.57 billion for the second quarter of 2009, compared to $1.22 billion in the second quarter of 2008. This was driven primarily by Gilead’s antiviral franchise, including the strong growth in sales of Atripla® (efavirenz 600 mg/ emtricitabine 200 mg/ tenofovir disoproxil fumarate 300 mg), as well as continued growth in sales of Truvada® (emtricitabine/tenofovir disoproxil fumarate).
Antiviral Franchise
Antiviral product sales increased 26 percent to $1.41 billion in the second quarter of 2009 from $1.12 billion for the same quarter of 2008. The increase was driven primarily by sales volume growth of Atripla and Truvada.
- Truvada
Truvada sales increased 18 percent to $608.1 million for the second quarter of 2009 from $516.1 million in the second quarter of 2008, driven primarily by sales volume growth in the United States and Europe.
- Atripla
Atripla sales increased 60 percent to $569.1 million for the second quarter of 2009 from $355.1 million in the second quarter of 2008, driven primarily by sales volume growth in the United States and Europe.
- Other Antiviral Products
Other antiviral product sales, including Viread® (tenofovir disoproxil fumarate), Hepsera® (adefovir dipivoxil) and Emtriva® (emtricitabine), decreased six percent to $233.1 million for the second quarter of 2009 from $249.1 million in the second quarter of 2008, driven primarily by sales volume decreases in Hepsera , partially offset by sales volume increases in Viread.
Letairis
Sales of Letairis® (ambrisentan) for the treatment of pulmonary arterial hypertension increased 79 percent to $44.1 million for the second quarter of 2009 from $24.7 million for the second quarter of 2008, driven primarily by sales volume growth in the United States.
Ranexa
Sales of Ranexa® (ranolazine) for the treatment of chronic angina were $36.1 million from April 15, 2009, the acquisition date of CV Therapeutics, to June 30, 2009.
Royalty, Contract and Other Revenues
Royalty, contract and other revenues resulting primarily from collaborations with corporate partners were $78.8 million for the second quarter of 2009, an increase of 29 percent from $60.9 million in the second quarter of 2008. This increase was driven primarily by higher Tamiflu® (oseltamivir phosphate) royalties from F. Hoffmann-La Roche Ltd of $51.9 million in the second quarter of 2009, compared to Tamiflu royalties of $37.5 million in the second quarter of 2008 resulting from increased sales related to pandemic planning initiatives worldwide.
Research and Development
Research and development (R&D) expenses in the second quarter of 2009 were $241.6 million compared to $176.5 million for the second quarter of 2008. Non-GAAP R&D expenses for the second quarter of 2009, which exclude restructuring and stock-based compensation expenses, were $206.1 million compared to $161.2 million for the second quarter in 2008, which exclude stock-based compensation expenses. This increase was primarily a result of higher headcount from the acquisition of CV Therapeutics, the overall growth in Gilead’s business and increased clinical study activity.
Selling, General and Administrative
Selling, general and administrative (SG&A) expenses in the second quarter of 2009 were $261.4 million compared to $219.5 million for the second quarter of 2008. Non-GAAP SG&A expenses for the second quarter of 2009, which exclude acquisition-related transaction costs, restructuring and stock-based compensation expenses, for the second quarter of 2009 were $213.2 million, compared to $200.9 million for the same quarter in 2008, which exclude stock-based compensation expenses. The increase was primarily due to higher headcount and expenses from the CV Therapeutics acquisition.
Net Foreign Currency Exchange Impact
The net foreign currency exchange impact on second quarter 2009 revenues and pre-tax earnings, which includes revenues and expenses generated from outside the United States, was an unfavorable $50.0 million and $18.4 million, respectively, compared to the second quarter of 2008.
Cash, Cash Equivalents and Marketable Securities
As of June 30, 2009, Gilead had cash, cash equivalents and marketable securities of $2.90 billion compared to $3.24 billion as of December 31, 2008. This decrease was primarily due to cash paid to acquire CV Therapeutics, partially offset by cash flows generated from operations. For the first six months of 2009, Gilead generated $1.26 billion of operating cash flows including $622.9 million in the second quarter of 2009.
Acquisition of CV Therapeutics
In April 2009, Gilead acquired CV Therapeutics, a biopharmaceutical company based in Palo Alto, California, for $1.39 billion. Gilead allocated the purchase price in accordance with Statement of Financial Accounting Standards (SFAS) No. 141(R), “Business Combinations” (SFAS 141R) and recorded $951.2 million in intangible assets relating to marketed products, which constituted a significant portion of the purchase price allocation. The results of operations for CV Therapeutics have been included in Gilead’s consolidated operating results beginning on April 15, 2009.
Adoption of New Accounting Pronouncements
On January 1, 2009, Gilead adopted Financial Accounting Standards Board Staff Position APB No. 14-1, “Accounting for Convertible Debt Instruments That May Be Settled In Cash Upon Conversion (Including Partial Cash Settlement)” (FSP APB 14-1) and recorded additional after-tax interest expense for the second quarter of 2009 of $8.5 million. FSP APB 14-1 requires retrospective application upon adoption; therefore, net income attributable to Gilead for the second quarter of 2008 has been adjusted from that which was previously reported to reflect additional after-tax interest expense of $8.0 million.
On January 1, 2009, Gilead adopted Statement of Financial Accounting Standards No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an amendment of Accounting Research Bulletin No. 51, Consolidated Financial Statements” (SFAS 160), and reflected the change in presentation of the noncontrolling interest (formerly minority interest) on a retrospective basis in our financial statements.
Product and Pipeline Update
Antiviral Franchise
In April 2009, Gilead announced that it had begun enrolling patients in a Phase II clinical trial of its investigational integrase-based, single-tablet, once-daily regimen of elvitegravir, GS 9350 and Truvada for the treatment of HIV-1 infection. Shortly thereafter, the company also initiated a Phase II clinical trial evaluating the safety and efficacy of GS 9350-boosted atazanavir compared to ritonavir-boosted atazanavir each in combination with Truvada for the treatment of HIV-1 infection. Both studies were fully enrolled during the quarter.
Cardiovascular Franchise
In April 2009, Gilead released top-line data from DAR-311 (DORADO), a Phase III clinical trial evaluating the company’s once-daily oral endothelin receptor antagonist darusentan as an add-on treatment for resistant hypertension. The full study results were presented during an oral late-breaker session at the annual meeting of the American Society of Hypertension in San Francisco in early May.
In May 2009, Gilead announced results from ARIES-3, an open-label, single-arm, Phase III study evaluating the efficacy and safety of ambrisentan in patients with pulmonary hypertension. These data were presented at the 2009 American Thoracic Society International Conference in San Diego.
Also in May, Gilead announced that the company’s Marketing Authorisation Application (MAA) for regadenoson, an investigational pharmacologic stress agent for radionuclide myocardial perfusion imaging, was validated and accepted for review by the European Medicines Agency (EMEA).
Respiratory Franchise
In June 2009, Gilead announced that the Committee for Medicinal Products for Human Use, the scientific committee of the EMEA, adopted a positive opinion on the company’s MAA for aztreonam lysine 75 mg powder and solvent for nebuliser solution (aztreonam lysine) for the suppressive therapy of chronic pulmonary infections due to Pseudomonas aeruginosa in patients with cystic fibrosis aged 18 years and older.
Conference Call
At 4:30 p.m. Eastern Time today, Gilead will host a conference call and a simultaneous webcast to discuss the results of its second quarter of 2009. During this call/webcast, Gilead’s management will discuss the company’s second quarter of 2009 results and provide a general business update. The webcast will be available live via the internet by accessing Gilead’s website at www.gilead.com. To access the webcast, please connect to the company’s website at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. Alternatively, please call 1-800-510-9836 (U.S.) or 1-617-614-3670 (international) and dial the participant passcode 39199252 to access the call.
A replay of the webcast will be archived on the company’s website for one year, and a phone replay will be available approximately two hours following the call through July 24, 2009. To access the phone replay, please call 1-888-286-8010 (U.S.) or 1-617-801-6888 (international) and dial the participant passcode 22207776.
About Gilead
Gilead Sciences is a biopharmaceutical company that discovers, develops and commercializes innovative therapeutics in areas of unmet medical need. Gilead’s mission is to advance the care of patients suffering from life-threatening diseases worldwide. Headquartered in Foster City, California, Gilead has operations in North America, Europe and Australia.
Non-GAAP Financial Information
Non-GAAP net income attributable to Gilead and net income attributable to Gilead per diluted share for the three and six months ended June 30, 2009 are presented excluding the after-tax impact of acquisition-related transaction costs, amortization of inventory mark-up and amortization of purchased intangibles; restructuring expenses; and stock-based compensation expenses, and have been adjusted for the application of APB 25 in computing non-GAAP dilutive securities. Non-GAAP net income attributable to Gilead and net income attributable to Gilead per diluted share for the three and six months ended June 30, 2008 are presented excluding the after-tax impact of stock-based compensation expenses and purchased IPR&D expense, and have been adjusted for the application of APB 25 in computing non-GAAP dilutive securities. Non-GAAP R&D expenses for the three and six months ended June 30, 2009 are presented excluding the impact of restructuring expenses and stock-based compensation expenses. Non-GAAP SG&A expenses for the three and six months ended June 30, 2009 are presented excluding the impact of acquisition-related transaction costs, restructuring expenses and stock-based compensation expenses. Non-GAAP R&D expenses and SG&A expenses for the three and six months ended June 30, 2008 are presented excluding the impact of stock-based compensation expenses. Management believes this non-GAAP information is useful for investors, taken in conjunction with Gilead’s GAAP financial statements, because management uses such information internally for its operating, budgeting and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of Gilead’s operating results as reported under United States generally accepted accounting principles.
Forward-looking Statements
Statements included in this press release that are not historical in nature are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: Gilead’s ability to sustain growth in revenues for its antiviral and cardiovascular franchises; unpredictable variability of Tamiflu royalties and the strong relationship between this royalty revenue and global pandemic planning and supply; Gilead’s ability to receive regulatory approvals in a timely manner or at all, for new and current products, including GS 9350, a single-tablet fixed-dose regimen containing elvitegravir, GS 9350 and Truvada, darusentan, ambrisentan for pulmonary hypertension, regadenoson, or aztreonam lysine; Gilead’s ability to successfully commercialize any products that receive regulatory approvals; Gilead’s ability to successfully develop its respiratory and cardiovascular franchises; initiating and completing clinical trials may take longer or cost more than expected; fluctuations in the foreign exchange rate of the U.S. dollar that may reduce or eliminate the favorable foreign currency exchange impact on Gilead’s future revenues and pre-tax earnings; our ability to consummate additional purchases under our share repurchase program due to changes in our stock price, corporate or other market conditions; risks and uncertainties related to Gilead’s ability to successfully integrate the products and employees of Gilead and CV Therapeutics, including its ability to increase sales of CV Therapeutics’ approved products and its ability to advance pipeline programs; and other risks identified from time to time in Gilead’s reports filed with the U.S. Securities and Exchange Commission. In addition, Gilead makes estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures. Gilead bases its estimates on historical experience and on various other market-specific and other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ significantly from these estimates. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “might,” “believes,” “estimates,” “projects,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “forecast,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking.
Gilead directs readers to its Annual Report on Form 10-K for the year ended December 31, 2008, its Quarterly Report on Form 10-Q for the first quarter of 2009 and its subsequent Current Reports on Form 8-K. Gilead claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation to update any such forward-looking statements.
Truvada, Viread, Hepsera, AmBisome, Letairis and Ranexa are registered trademarks of Gilead Sciences, Inc.
Atripla is a registered trademark of Bristol-Myers Squibb & Gilead Sciences, LLC.
Tamiflu is a registered trademark of F. Hoffmann-La Roche Ltd.
For more information on Gilead Sciences, Inc., please visit www.gilead.com or call the Gilead Public Affairs Department at 1-800-GILEAD-5 (1-800-445-3235).
| GILEAD SCIENCES, INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Product sales | $ | 1,568,378 | $ | 1,217,216 | $ | 3,015,958 | $ | 2,358,522 | |||||||||
| Royalty, contract and other revenues | 78,777 | 60,909 | 161,657 | 177,755 | |||||||||||||
| Total revenues | 1,647,155 | 1,278,125 | 3,177,615 | 2,536,277 | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Cost of goods sold | 383,045 | 265,684 | 712,459 | 505,532 | |||||||||||||
| Research and development | 241,638 | 176,542 | 430,417 | 331,843 | |||||||||||||
| Selling, general and administrative | 261,411 | 219,533 | 465,362 | 414,490 | |||||||||||||
| Purchased in-process research and development | - | 10,851 | - | 10,851 | |||||||||||||
| Total costs and expenses | 886,094 | 672,610 | 1,608,238 | 1,262,716 | |||||||||||||
| Income from operations | 761,061 | 605,515 | 1,569,377 | 1,273,561 | |||||||||||||
| Interest and other income, net | 12,923 | 14,026 | 17,081 | 36,726 | |||||||||||||
| Interest expense (1) | (18,484 | ) | (16,428 | ) | (35,155 | ) | (32,429 | ) | |||||||||
| Income before provision for income taxes | 755,500 | 603,113 | 1,551,303 | 1,277,858 | |||||||||||||
| Provision for income taxes (1) | 186,355 | 170,490 | 395,582 | 358,810 | |||||||||||||
| Net income (2) | 569,145 | 432,623 | 1,155,721 | 919,048 | |||||||||||||
| Net loss attributable to noncontrolling interest (2) | 2,253 | 2,160 | 4,789 | 4,035 | |||||||||||||
| Net income attributable to Gilead (2) | $ | 571,398 | $ | 434,783 | $ | 1,160,510 | $ | 923,083 | |||||||||
| Net income per share attributable to Gilead common stockholders - basic (2) | $ | 0.63 | $ | 0.47 | $ | 1.28 | $ | 1.00 | |||||||||
| Net income per share attributable to Gilead common stockholders - diluted (2) | $ | 0.61 | $ | 0.45 | $ | 1.24 | $ | 0.96 | |||||||||
| Shares used in per share calculation - basic | 905,611 | 922,796 | 907,684 | 925,455 | |||||||||||||
| Shares used in per share calculation - diluted | 934,478 | 965,663 | 938,500 | 966,087 | |||||||||||||
| Notes: | |||||||||||||||||
| (1) | On January 1, 2009, Gilead adopted FSP APB 14-1 on a retrospective basis for its convertible senior notes and reflected additional after-tax interest expense of $8.5 million and $8.0 million for the three months ended June 30, 2009 and 2008, respectively, and reflected additional after-tax interest expense of $16.8 million and $15.9 million for the six months ended June 30, 2009 and 2008, respectively. | ||||||||||||||||
| (2) | On January 1, 2009, Gilead adopted SFAS 160 and presented on a retrospective basis its noncontrolling interest (formerly minority interest) as net loss attributable to noncontrolling interest which is a component of consolidated net income. | ||||||||||||||||
| GILEAD SCIENCES, INC. | |||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||||||
| Net income attributable to Gilead (GAAP) | $ | 571,398 | $ | 434,783 | $ | 1,160,510 | $ | 923,083 | |||||||||
| Acquisition-related transaction costs | 8,165 | - | 8,165 | - | |||||||||||||
| Acquisition-related amortization of inventory mark-up | 2,659 | - | 2,659 | - | |||||||||||||
| Acquisition-related amortization of purchased intangibles | 8,909 | - | 8,909 | - | |||||||||||||
| Restructuring expenses | 17,792 | - | 17,792 | - | |||||||||||||
| Stock-based compensation expenses | 39,961 | 26,409 | 70,249 | 52,410 | |||||||||||||
| Purchased in-process research and development expense | - | 7,769 | - | 7,769 | |||||||||||||
| Net income attributable to Gilead (Non-GAAP) | $ | 648,884 | $ | 468,961 | $ | 1,268,284 | $ | 983,262 | |||||||||
| Net income per share attributable to Gilead common stockholders - diluted (GAAP) | $ | 0.61 | $ | 0.45 | $ | 1.24 | $ | 0.96 | |||||||||
| Acquisition-related transaction costs | 0.01 | - | 0.01 | - | |||||||||||||
| Acquisition-related amortization of inventory mark-up | 0.00 | - | 0.00 | - | |||||||||||||
| Acquisition-related amortization of purchased intangibles | 0.01 | - | 0.01 | - | |||||||||||||
| Restructuring expenses | 0.02 | - | 0.02 | - | |||||||||||||
| Stock-based compensation expenses | 0.04 | 0.03 | 0.07 | 0.05 | |||||||||||||
| Purchased in-process research and development expense | - | 0.01 | - | 0.01 | |||||||||||||
| Net income per share attributable to Gilead common stockholders - diluted (Non-GAAP) (1) | $ | 0.69 | $ | 0.48 | $ | 1.35 | $ | 1.02 | |||||||||
| Shares used in per share calculation - diluted (GAAP) | 934,478 | 965,663 | 938,500 | 966,087 | |||||||||||||
| Effect of SFAS 123R | 28 | 2,403 | 397 | 2,223 | |||||||||||||
| Shares used in per share calculation - diluted (Non-GAAP) | 934,506 | 968,066 | 938,897 | 968,310 | |||||||||||||
| Research and development expenses (GAAP) | $ | 241,638 | $ | 176,542 | $ | 430,417 | $ | 331,843 | |||||||||
| Restructuring expenses | (11,251 | ) | - | (11,251 | ) | - | |||||||||||
| Stock-based compensation expenses | (24,321 | ) | (15,370 | ) | (41,276 | ) | (32,265 | ) | |||||||||
| Research and development expenses (Non-GAAP) | $ | 206,066 | $ | 161,172 | $ | 377,890 | $ | 299,578 | |||||||||
| Selling, general and administrative expenses (GAAP) | $ | 261,411 | $ | 219,533 | $ | 465,362 | $ | 414,490 | |||||||||
| Acquisition-related transaction costs | (8,165 | ) | - | (8,165 | ) | - | |||||||||||
| Restructuring expenses | (12,855 | ) | - | (12,855 | ) | - | |||||||||||
| Stock-based compensation expenses | (27,189 | ) | (18,657 | ) | (48,025 | ) | (36,204 | ) | |||||||||
| Selling, general and administrative expenses (Non-GAAP) | $ | 213,202 | $ | 200,876 | $ | 396,317 | $ | 378,286 | |||||||||
| Note: | |||||||||||||||||
| (1) Amounts may not sum due to rounding | |||||||||||||||||
| GILEAD SCIENCES, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| June 30, | December 31, | ||||||
| 2009 | 2008 | ||||||
| (unaudited) | (Note 2) | ||||||
| Cash, cash equivalents and marketable securities | $ | 2,898,446 | $ | 3,239,639 | |||
| Accounts receivable, net | 1,242,899 | 1,023,397 | |||||
| Inventories | 969,971 | 927,868 | |||||
| Property, plant and equipment, net | 697,426 | 528,799 | |||||
| Intangible assets (1) | 1,570,790 | 123,008 | |||||
| Other assets (3) | 1,007,560 | 1,094,120 | |||||
| Total assets | $ | 8,387,092 | $ | 6,936,831 | |||
| Current liabilities | $ | 1,777,882 | $ | 1,220,992 | |||
| Long-term liabilities (3)(4) | 1,295,241 | 1,250,256 | |||||
| Stockholders’ equity (3)(4) | 5,313,969 | 4,465,583 | |||||
| Total liabilities and stockholders’ equity | $ | 8,387,092 | $ | 6,936,831 | |||
| Note: | |||||||
| (1) | In April 2009, Gilead acquired CV Therapeutics for $1.39 billion. Gilead allocated the purchase price in accordance with SFAS 141R and recorded $951.2 million in intangible assets relating to marketable products, which constituted a significant portion of the purchase price allocation. | ||||||
| (2) | Derived from audited consolidated financial statements at that date adjusted for retrospective application of FSP APB 14-1 and SFAS 160 per notes 3 and 4 below. | ||||||
| (3) | On January 1, 2009, Gilead adopted FSP APB 14-1 on a retrospective basis for its convertible senior notes. As of December 31, 2008, the retrospective adoption of FSP APB 14-1 decreased deferred tax assets and debt issuance costs included in other assets by an aggregate of $81.7 million, decreased convertible senior notes included in long-term liabilities by $201.8 million, and increased total stockholders’ equity by $120.1 million after a charge of $82.6 million to retained earnings. | ||||||
| (4) | On January 1, 2009, Gilead adopted SFAS 160 and reclassified its noncontrolling interest (formerly minority interest) of $193.0 million from liabilities to stockholders’ equity on a retrospective basis. | ||||||
| GILEAD SCIENCES, INC. | |||||||||||||
| PRODUCT SALES SUMMARY | |||||||||||||
| (unaudited) | |||||||||||||
| (in thousands) | |||||||||||||
| |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
| Antiviral products: | |||||||||||||
| Truvada – U.S. | $ | 285,688 | $ | 236,402 | $ | 566,685 | $ | 474,934 | |||||
| Truvada – Europe | 287,777 | 240,911 | 566,217 | 459,278 | |||||||||
| Truvada – Other International | 34,614 | 38,836 | 65,530 | 61,322 | |||||||||
| 608,079 | 516,149 | 1,198,432 | 995,534 | ||||||||||
| Atripla – U.S. | 398,044 | 312,392 | 772,176 | 618,877 | |||||||||
| Atripla – Europe | 154,835 | 37,504 | 279,614 | 51,699 | |||||||||
| Atripla – Other International | 16,263 | 5,205 | 27,235 | 8,742 | |||||||||
| 569,142 | 355,101 | 1,079,025 | 679,318 | ||||||||||
| |||||||||||||
| Viread – U.S. | 67,858 | 58,414 | 137,447 | 121,482 | |||||||||
| Viread – Europe | 66,009 | 61,273 | 131,340 | 126,989 | |||||||||
| Viread – Other International | 25,058 | 30,994 | 50,743 | 54,877 | |||||||||
| 158,925 | 150,681 | 319,530 | 303,348 | ||||||||||
| Hepsera – U.S. | 22,771 | 34,581 | 48,423 | 65,856 | |||||||||
| Hepsera – Europe | 40,797 | 50,531 | 79,714 | 98,994 | |||||||||
| Hepsera – Other International | 3,506 | 5,253 | 11,651 | 8,537 | |||||||||
| 67,074 | 90,365 | 139,788 | 173,387 | ||||||||||
| |||||||||||||
| Emtriva – U.S. | 3,716 | 4,106 | 7,346 | 7,944 | |||||||||
| Emtriva – Europe | 2,210 | 2,094 | 4,506 | 4,675 | |||||||||
| Emtriva – Other International | 1,170 | 1,888 | 2,420 | 3,858 | |||||||||
| 7,096 | 8,088 | 14,272 | 16,477 | ||||||||||
|
| ||||||||||||
| Total Antiviral products – U.S. | 778,077 | 645,895 | 1,532,077 | 1,289,093 | |||||||||
| Total Antiviral products – Europe | 551,628 | 392,313 | 1,061,391 | 741,635 | |||||||||
| Total Antiviral products – Other International | 80,611 | 82,176 | 157,579 | 137,336 | |||||||||
| 1,410,316 | 1,120,384 | 2,751,047 | 2,168,064 | ||||||||||
|
| ||||||||||||
| AmBisome | 73,310 | 69,768 | 137,581 | 140,796 | |||||||||
| Letairis | 44,128 | 24,686 | 83,708 | 45,023 | |||||||||
| Ranexa | 36,065 | - | 36,065 | - | |||||||||
| Other products | 4,559 | 2,378 | 7,557 | 4,639 | |||||||||
| 158,062 | 96,832 | 264,911 | 190,458 | ||||||||||
|
| ||||||||||||
| Total product sales | $ | 1,568,378 | $ | 1,217,216 | $ | 3,015,958 | $ | 2,358,522 | |||||
MRK
Merck, Schering-Plough beat lukewarm 2Q forecasts
Drugmaker partners Merck, Schering-Plough beat 2Q forecasts on lower costs, foreign sales
TRENTON, N.J. (AP) -- Drugmakers Merck & Co. and Schering-Plough Corp., set to combine this year, each reported second-quarter profits Tuesday that beat Wall Street expectations, despite pressure from the strong dollar and the continuing drop in sales from their cholesterol drugs.
Higher sales in Japan, and in the emerging markets the entire industry is pursuing, helped both companies.
Merck said the $41.1 billion deal to acquire Schering-Plough is on track to close in the fourth quarter. The combination, scheduled to be voted on by shareholders of both companies on Aug. 7, would vault Merck to the world's No. 2 drugmaker.
Wall Street was encouraged by the reports. Merck shares rose $1.36, or 4.9 percent, to $29.30 in late-afternoon trading, while Schering-Plough shares rose 74 cents, or 2.9 percent, to $26.31.
"Both companies did fairly well, given the challenges that they faced," said analyst Linda Bannister of Edward Jones.
Those challenges include the recession cutting into consumer spending on prescription drugs, currency rates and generic competition, Bannister said. She credited cost cutting, international sales growth and lower tax rates for results that beat investors' lackluster expectations.
Whitehouse Station, N.J.-based Merck, best known for asthma and allergy treatment Singulair and cervical cancer vaccine Gardasil, reported net income of $1.56 billion, or 74 cents per share. That was down 12 percent from net income of $1.77 billion, or 82 cents per share, a year earlier. Revenue totaled $5.9 billion in the most recent period, down from $6.05 billion a year earlier.
Sales in emerging markets, where Merck is "in early growth mode," grew by double digits, Merck Chief Executive Richard T. Clark said in an interview.
"Japan continues to be the greatest growth driver" because of new product introductions, he added.
Meanwhile, combined sales of cholesterol drugs Vytorin and Zetia from their joint venture dropped another 10 percent in the quarter, to $1 billion. They have seen U.S. sales steadily decline since January 2008, when concerns about their effectiveness and safety first surfaced.
Excluding restructuring charges and expenses related to the Schering-Plough purchase -- totaling $286 million, or 9 cents per share -- Merck's earnings per share were 83 cents. Analysts surveyed by Thomson Reuters were expecting earnings per share of 77 cents and revenue of $5.84 billion.
"Merck just had to meet expectations to relieve investors" after disappointing them in the first quarter, when sales were down 8 percent and profit plunged 57 percent, wrote Credit Suisse analyst Catherine Arnold, "so beating consensus estimates by 6 cents ... should be seen as a meaningful result."
Miller Tabak analyst Les Funtleyder wrote that Merck's results "will mollify investors' fears of further deterioration. However, the franchise is still somewhat weak in absolute terms."
Kenilworth, N.J.-based Schering-Plough's profit jumped 49 percent to $633 million, or 38 cents per share, thanks to much lower one-time charges than a year ago. That compares with $424 million, or 26 cents per share, a year earlier.
Excluding one-time items totaling $136 million, mostly related to its 2007 purchase of Organon BioSciences, profit rose to 46 cents per share from 45 cents per share, beating analyst estimates by a penny.
The maker of hepatitis drugs, allergy spray Nasonex and Dr. Scholl's foot care products said sales fell 6 percent to $4.65 billion.
Leerink Swann analyst Seamus Fernandez noted sales of most products were at or slightly above estimates, but consumer and animal health sales were weak.
Clark, who will run the combined company, was bullish on Schering's consumer health business, which sells allergy pill Claritin and Miralax for constipation. He said the new company could benefit from the "excellent candidates" for further prescription-to-nonprescription product switches in the two companies' portfolios.
Clark didn't give any examples of possibilities, but these could include Clarinex, other allergy treatments and even cholesterol drugs, as the two companies have previously tried to get a nonprescription cholesterol pill approved.
