Synthetech, Inc. (OTC Bulletin Board: NZYM) today announced financial results for the first quarter of fiscal 2011, which ended June 30, 2010. Revenue for the quarter was $2.0 million, a 56% decrease compared to revenue of $4.7 million in the first quarter of fiscal 2010. The operating loss for the current quarter was $727,000, compared to operating income of $1.0 million for the same period last year. The net loss for the current quarter was $763,000, or $0.05 per basic share, compared to last year's first quarter net income of $969,000, or $0.07 per basic share.
International sales were $1.2 million and $2.9 million in the first quarters of fiscal 2011 and 2010, respectively. International sales, like all of Synthetech's revenues, are subject to significant quarterly fluctuations.
Synthetech's cash and cash equivalents were $1.3 million at June 30, 2010, compared to $1.1 million at March 31, 2010. Synthetech's working capital was $6.2 million at June 30, 2010, compared to $7.3 million at March 31, 2010. As of June 30, 2010, Synthetech had no outstanding borrowings under its line of credit.
Commenting on the financial results, Dr. Gregory Hahn, President and CEO, stated, "It is difficult to begin a new fiscal year with the results posted. However, this is consistent with quarter to quarter lumpiness and we remain cautiously optimistic. We anticipate fiscal 2011 will be a profitable building year, even accounting for our investment in our San Diego Research Center lab, proposed expansion of our active pharmaceutical ingredient (API) manufacturing facilities, and current economic and market conditions. Order backlog as of August 5, 2010 is $4.0 million, most of which is scheduled to deliver in the second quarter."