FOR IMMEDIATE RELEASE
ACETO CORPORATION REPORTS BEST EVER QUARTERLY
LAKE SUCCESS, NY - November 6, 2003 - Aceto Corporation (Nasdaq:ACET), a global
distributor of pharmaceutical and specialty chemicals, today announced record
quarterly results of operations for its first quarter ended September 30, 2003.
FIRST QUARTER FINANCIAL HIGHLIGHTS - versus fiscal 2003 first quarter
o Net sales rose 6% to $72.3 million.
o Operating income grew 17% to $4.2 million.
o Income, before the cumulative effect of a non-cash accounting charge
of $1.9 million in the first quarter of last year, increased 34% to
$3.1 million or $0.29 per diluted share, from $2.3 million or $0.24
per diluted share in the same period last year.
Leonard S. Schwartz, Chairman, CEO and President of Aceto, stated, "We are
pleased to report our best quarter ever in terms of sales and net income, during
which our Health Sciences segment launched one new Active Pharmaceutical
Ingredient (API), and three smaller volume products to the generic
pharmaceutical industry. We define a product launch as a launch in which we
expect to realize more than $2 million in sales during the six-month launch
period. Additionally, our existing generic pharmaceutical business showed
"In addition, we achieved sales, gross profit, and gross profit margin increases
in our three main business segments - Health Sciences, Chemicals and Colorants,
and Agrochemicals - which together generated an overall gross profit margin of
17.04%, versus 16.53% in the first quarter of last year. SG&A expenses, net of a
$300,000 non-recurring gain from the sale of property in last year's period,
remained essentially flat as a percent of net sales, producing a 34% increase in
income, before the cumulative effect of a non-cash accounting charge, on a 6%
Mr. Schwartz further stated, "In addition to focusing on organic growth in our
core businesses and our Health Sciences segment's plans to launch at least four
Active Pharmaceutical Ingredients (APIs) per year, we are pursuing other avenues
for continued growth. As recently announced, we signed a letter of intent to
form a joint venture with Nufarm Limited to market a herbicide that we presently
market under a different label. This partnership reflects our strategy to
capitalize on the consolidation and impending disintermediation of traditional
supply channels in the agrochemical
industry by forming alliances with major agrochemical companies. We expect to
formally commence the joint venture within two weeks.
"We also announced plans to expand our presence in Eastern Europe to facilitate
the supply of European Union-approved APIs to pharmaceutical manufacturers in