Aug 3 2006, 6:30 AM EST
News source: Business Wire
Acorda Therapeutics(R) (Nasdaq: ACOR) today announced its financial results for the quarter ended June 30, 2006.Recognized Revenue Reported
For the quarter ended June 30, 2006, gross sales were $3.9 million for Zanaflex Capsules(TM) (tizanidine hydrochloride) and $4.0 million for Zanaflex(R) (tizanidine hydrochloride) tablets. For the same quarter in 2005 we recognized gross sales of Zanaflex Capsules of $311,000 and gross sales of Zanaflex tablets of $167,000. Gross sales are recognized using a deferred revenue recognition model, where product shipments to wholesalers are recorded as deferred revenue, and later recognized as gross sales when end-user prescriptions are reported.
During the quarter ended June 30, 2006, we adopted IMS Health data as the prescription data source used as the basis for recognizing shipments of Zanaflex product as revenue. This change resulted in additional gross sales from prescriptions reported of $391,000 for Zanaflex Capsules and $230,000 for Zanaflex tablets.
Additionally, on June 30, 2006, all rights of return expired for prior shipments of short-dated lots of Zanaflex tablets inventory purchased as part of the 2004 Zanaflex acquisition and not previously recognized in gross sales. This resulted in the recognition of an additional $2.2 million of gross sales for the second quarter of 2006. Excluding the impact of this event and excluding the gross sales recognized due to the conversion to IMS Health prescription data, non-GAAP gross sales for the quarter ended June 30, 2006 would have been $5.1 million. The differences between non-GAAP and GAAP gross sales of Zanaflex Capsules and Zanaflex tablets are reconciled in the table below. The Company believes it is appropriate to present this supplemental information as it will allow investors to better understand the Company's operating results for the second quarter of 2006 and its ongoing performance in a manner similar to how the Company analyzes its operating results. Adjustments and other factors make it more difficult to make meaningful period to period comparisons. These non-GAAP financial measures should not be construed as being more important than comparable GAAP measures.
In the second quarter 2006, we recorded an adjustment to discounts and allowances to reflect the reversal of the remaining $1.8 million of an accrual made in 2004 to cover our exposure to returns of Zanaflex tablet product originally sold by Elan prior to our acquisition of the Zanaflex product line. Our obligation to continue to accept these returns ended on June 30, 2006, resulting in this adjustment.
The impact of the change in prescription provider and events discussed above are detailed in the following schedule.
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More News Detail on Second Quarter 2006 Sales Data
(in thousands)
(Unaudited)
Capsules Tablets Total
--------- -------- -------
GAAP/NON-GAAP RECONCILIATION
Non-GAAP gross sales $3,543 $1,526 $5,069
Change due to IMS Health prescription data 391 230 621
Expiration of right of short-dated Zanaflex
tablets - 2,202 2,202
returns
--------- -------- -------
GAAP gross sales for quarter ended 6-30-2006 $3,934 $3,958 $7,892
ADDITIONAL ITEMS
Less: Discounts and allowances (196) (73) (269)
Expiration of right of return - Elan sales - 1,801 1,801
--------- -------- -------
GAAP net sales for quarter ended 6-30-2006 $3,738 $5,686 $9,424
========= ======== =======
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