Shares of generic drug developer, Akorn, Inc. (Nasdaq: AKRX) began their climb in after-hours trading yesterday after the company announced it swung to a profit in the first quarter.
The Buffalo Grove, Ill.-based company reported a net income of $3.5 million, or 4 cents a share, compared with a net loss of $10.7 million, or 12 cents a share a year ago. Consolidated revenue for the quarter dipped 7 percent to $20.5 million, due to winding down of the company’s vaccine business segment. Revenue from its core business, consisting of ophthalmic, hospital drugs & injectables and contract services, rose 36 percent to $15.4 million.
Other highlights in the quarter included operating income of $1.8 million, EBITDA of $3.9 million, improved gross margins to 41 percent, and positive cash flow of $2 million.
“We are off to a solid start for the year,” said Interim CEO, Raj Rai in a statement. “Our strategy to focus on the core business and on operating efficiencies has translated into favorable results. In addition, we are experiencing strong demand for Akorn products as well as for our third-party contract manufacturing business.”