DepoMed Inc. (NASDAQ:DEPO) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
DepoMed Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.10 in the quarter versus EPS of $-0.16 in the year-earlier quarter.
Revenue: Rose 55.58% to $26.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: DepoMed Inc. reported adjusted EPS loss of $0.10 per share. By that measure, the company missed the mean analyst estimate of $-0.06. It missed the average revenue estimate of $28.93 million.
Quoting Management: “Our results for the first quarter of 2013 illustrate the progress we have made in the past year toward building our specialty pharmaceutical business and increasing revenue from our license and collaboration arrangements. During the first quarter, we realigned our sales force to increase the frequency of calls on our top potential prescribers and better balance our sales territories. We believe that the resulting disruption of the sales rep-physician relationships affected our first quarter prescription growth. However, we expect that the realignment will create additional demand in future quarters. In addition, during the first quarter, key wholesalers reduced their inventories of Gralise and Zipsor from December 31 levels, resulting in lower sales. We believe that Gralise prescription growth and product shipments in April have resumed a growth trend.” said Jim Schoeneck, President and Chief Executive Officer of Depomed. “For the remainder of 2013, we are focused on growing product and royalty revenues, managing expenses to achieve positive cash flow and continuing to work towards acquisitions that will enhance the position of the company.”
Key Stats (on next page)…