(RTTNews) - PDL BioPharma, Inc. (PDLI:
News ) reported Wednesday a decline in third-quarter profit, despite a 4% growth in revenues, reflecting mainly increased income tax expense. The company also lowered the top-end of its earlier full-year revenue outlook range and provided an earnings guidance for the year.
For the third quarter, net income dropped to $46.41 million or $0.29 per share from $55.69 million or $0.38 per share in the previous year.
For the prior-year quarter, income from continuing operations was $50.31 million or 0.34 a share and income from discontinued operations was $5.38 million or $0.04 a share.
On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.26 per share in the third quarter. Analysts' estimate typically excludes special items.
Revenues from continuing operations for the period increased 4% to $71.45 million from $68.82 million in the third quarter of the prior fiscal year. Five analysts were expecting revenue of $76.48 million in the third quarter.
General and administrative expenses reduced to $5.26 million from $12.00 million, driven by the company's reduced cost structure. Interest and other income dropped year-over-year to $214 thousand from $3.21 million.
Income tax expense swelled to $17.22 million from $6.16 million last year. PDL BioPharma said that it accrued tax at the federal statutory rate of 35%, whereas in the year-ago period taxes were accrued at the federal and state alternative minimum tax rates.
For the nine-month period, net income surged to $161.10 million or $0.97 per share from $27.75 million or $0.23 per share in fiscal 2008. Revenues increased to $259.93 million from $225.54 million in the same period last year.
Looking ahead to the full year, the company expects to report net income of $187 million to $195 million. The company has revised its revenue view to include MedImmune royalties and its expectation of lower product sales growth in Avastin, Herceptin and Tysabri. The company now expects full year revenues of $310 million - $320 million from the prior range of $310 million - $325 million. Seven analysts estimate revenues of $331.96 million for the year.
PDLI is currently trading at $8.16, down $0.17 or 2.04%, on the Nasdaq.
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by RTT Staff Writer
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