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ImmuCell Corp. (ICCC) filed Quarterly Report for the period ended 2011-09-30.
Immucell Corp. has a market cap of $17.19 million; its shares were traded at around $5.76 with and P/S ratio of 3.92.
This is the annual revenues and earnings per share of ICCC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ICCC.
Highlight of Business Operations:
Product sales increased by approximately 15%, or $130,000, to $1,003,000 during the three-month period ended September 30, 2011 in comparison to $874,000 during the same period in 2010. During the three-month period ended September 30, 2011, domestic sales increased by 19%, or $138,000, and international sales decreased by 5%, or $8,000, in comparison to the same period in 2010. Product sales increased by approximately 17%, or $543,000, to $3,807,000 during the nine-month period ended September 30, 2011 in comparison to $3,263,000 during the same period in 2010. During the nine-month period ended September 30, 2011, domestic sales increased by 19%, or $506,000, and international sales increased by 6%, or $38,000, in comparison to the same period in 2010. Product sales increased by approximately 15%, or $633,000, to $4,930,000 during the twelve-month period ended September 30, 2011, in comparison to $4,297,000 during the same period in 2010.During the three-month period ended September 30, 2011, domestic sales of First DefenseÒ increased by 29%, and this increase was offset, in part, by an 8% decrease in international sales of First DefenseÒ, in comparison to the same period in 2010. Sales of First DefenseÒ increased by 22% during the three-month period ended September 30, 2011 in comparison to the same period in 2010. This follows a 37% increase in sales of First DefenseÒ during the three-month period ended June 30, 2011 in comparison to the same period in 2010 and a 21% increase during the three-month period ended March 31, 2011 in comparison to the same period in 2010 and a 13% increase during the three-month period ended December 31, 2010 in comparison to the same period in 2009. During the nine-month period ended September 30, 2011, domestic sales of First DefenseÒ increased by 24%, and this increase was complemented by a 39% increase in international sales of First DefenseÒ, in comparison to the same period in 2010. Sales of First DefenseÒ increased by 26% during the nine-month period ended September 30, 2011 in comparison to the same period in 2010. Sales of Wipe OutÒ Dairy Wipes decreased by 24% and 16% during the three-month and nine-month periods ended September 30, 2011, respectively, in comparison to the same periods in 2010. With Wipe OutÒ Dairy Wipes, we are competing aggressively on selling price to earn new business against less expensive products and alternative teat sanitizing methods. This product tends to be more popular on smaller dairy operations, and many smaller farms are going out of business.
The gross margin as a percentage of product sales was 52% and 41% during the three-month periods ended September 30, 2011 and 2010, respectively. The gross margin as a percentage of product sales was 55% and 53% during the nine-month periods ended September 30, 2011 and 2010, respectively. The gross margin as a percentage of product sales was 54% during the twelve-month periods ended September 30, 2011 and 2010. Our annual objective for gross margin percentage is approximately 50%, and our gross margin as a percentage of product sales has been maintained moderately above that target during the periods being reported (except for during the third quarter of 2010). Our gross margin percentages were 52%, 53% and 45% for the years ended December 31, 2010, 2009 and 2008, respectively. We expect some fluctuations in gross margin percentages from quarter to quarter. We believe that a number of factors can cause our costs to be variable. Biological yields from the raw material used in the production of First DefenseÒ do fluctuate over time. Like most manufacturers in the U.S., we have been experiencing increases in the cost of raw materials that we purchase. Product mix also affects gross margin in that we earn a higher gross margin on First DefenseÒ and a lower gross margin on Wipe OutÒ Dairy Wipes. We had held our selling prices without significant increase for approximately the seven-year period ended December 31, 2007, believing that we could benefit more from higher unit sales volume than through a higher average selling price per unit. During the first quarter of 2008, we implemented a modest increase to the selling price of First DefenseÒ and have held that selling price without increase since then. Changes in the gross margin on product sales are summarized in the following table for the respective periods (in thousands, except for percentages):
Product development expenses decreased by approximately 3%, or $8,000, to $304,000 during the three-month period ended September 30, 2011 in comparison to the same period in 2010. Product development expenses aggregated 30% and 36% of product sales during the three-month periods ended September 30, 2011 and 2010, respectively. Product development expenses increased by approximately 38%, or $398,000, to $1,449,000 during the nine-month period ended September 30, 2011 in comparison to the same period in 2010. Product development expenses aggregated 38% and 32% of product sales during the nine-month periods ended September 30, 2011 and 2010, respectively. The product development expenses principally reflect the costs related to the development of the commercial manufacturing process for Mast OutÒ and to the studies investigating a rotavirus claim for First DefenseÒ.
unchanged in comparison to the same period in 2010, aggregating 20% and 23% of product sales during the three-month periods ended September 30, 2011 and 2010, respectively. During the nine-month period ended September 30, 2011, sales and marketing expenses increased by 34%, or $159,000, to $634,000 as compared to the same period in 2010, aggregating 17% and 15% of product sales during the nine-month periods ended September 30, 2011 and 2010, respectively. This year-to-date increase was expected and planned given our strategic decision to invest in additional sales and marketing efforts. This investment may have created, at least in part, our recent increase in product sales. Our current budgetary objective is to maintain the ratio of product selling expenses to product sales below 20% for the full year 2011.
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