UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 10-Q

 

 

Commission file number:  0-25323

 

ALBANY MOLECULAR RESEARCH, INC.

(Exact name of registrant as specified in its charter)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

Yes                            ý                                    No                                o

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).

 

Yes                            ý                                    No                                o

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class		Outstanding at August 2, 2004
Common Stock, $.01 par value		31,725,359

 

 

ALBANY MOLECULAR RESEARCH, INC.

INDEX

 

Part I.	Financial Information		3
	Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3
		Condensed Consolidated Statements of Operations	3
		Condensed Consolidated Balance Sheets	4
		Condensed Consolidated Statements of Cash Flows	5
		Notes to Condensed Consolidated Financial Statements	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
	Item 4.	Controls and Procedures	29
Part II.	Other Information		30
	Item 1.	Legal Proceedings	30
	Item 4.	Submission of Matters to a Vote of Security Holders	31
	Item 6.	Exhibits and Reports on Form 8-K	31
Signatures			32
Exhibit Index

 

2

 

PART I — FINANCIAL INFORMATION

 

Item 1.    Condensed Consolidated Financial Statements

 

Albany Molecular Research, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

 

(Dollars in thousands, except for per share data)

 

		Three Months Ended						Six Months Ended
		June 30, 2004			June 30, 2003			June 30, 2004			June 30, 2003
Contract revenue		$	28,118		$	38,777		$	58,932		$	72,616
Recurring royalties		13,878			15,200			23,870			26,300
Total revenue		41,996			53,977			82,802			98,916
Cost of contract revenue		22,853			29,158			46,715			55,170
Write-down of library inventories		5,974			—			5,974			—
Total cost of contract revenue		28,827			29,158			52,689			55,170
Technology incentive award		1,387			1,520			2,385			2,630
Research and development		5,368			5,552			13,248			11,117
Selling, general and administrative		5,811			5,304			9,732			11,433
Property and equipment impairment		4,728			—			4,728			—
Goodwill impairment		14,494			—			14,494			—
Intangible asset impairment		3,541			—			3,541			—
Restructuring charge		426			—			426			—
Total costs and expenses		64,582			41,534			101,243			80,350
(Loss) income from operations		(22,586		)	12,443			(18,441		)	18,566
Equity in (loss) of income of unconsolidated affiliates		—			(87		)	(65		)	(21		)
Interest income, net		142			354			302			560
Other income, net		1			110			9			122
(Loss) income before income tax expense		(22,443		)	12,820			(18,195		)	19,227
Income tax (benefit) expense		(1,670		)	4,551			(183		)	6,826
Net (loss) income		$	(20,773	)	$	8,269		$	(18,012	)	$	12,401