ALBANY MOLECULAR RESEARCH INC - 10-Q Quarterly Report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ý		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2004

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 0-25323

ALBANY MOLECULAR RESEARCH, INC.

(Exact name of registrant as specified in its charter)

DELAWARE		14-1742717
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

21 Corporate Circle PO Box 15098 Albany, New York 12212-5098
(Address of principal executive offices)

(518) 464-0279
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

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 November 3, 2004
Common Stock, $.01 par value		31,753,516

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						Nine Months Ended
	September 30, 2004			September 30, 2003			September 30, 2004			September 30, 2003
				(restated)						(restated)
Contract revenue	$	28,703		$	33,005		$	87,635		$	105,621
Recurring royalties	11,917			12,400			35,787			38,700
Total revenue	40,620			45,405			123,422			144,321

Cost of contract revenue	23,275			22,023			69,990			77,194
Write-down of library inventories	—			—			5,974			—
Total cost of contract revenue	23,275			22,023			75,964			77,194

Technology incentive award	1,193			1,253			3,578			3,883
Research and development	5,186			5,482			18,434			16,600
Selling, general and administrative	6,439			4,047			16,171			15,478
Property and equipment impairment	—			—			4,728			—
Goodwill impairment	—			—			14,494			—
Intangible asset impairment	—			—			3,541			—
Restructuring charge	230			—			656			—
Total costs and expenses	36,323			32,805			137,566			113,155

Income (loss) from operations	4,297			12,600			(14,144		)	31,166

Equity in loss of unconsolidated affiliates	—			(57		)	(65		)	(78		)
Interest (expense) income, net	(23		)	250			279			659
Other income, net	—			14			9			146

Income (loss) before income tax expense	4,274			12,807			(13,921		)	31,893

Income tax expense	1,384			4,574			1,201			11,400

Net income (loss)	$	2,890		$	8,233		$	(15,122	)	$	20,493

Basic earnings (loss) per share	$	0.09		$

Part I.	Financial Information

	Item 1.	Condensed Consolidated Financial Statements (Unaudited)

		Condensed Consolidated Statements of Operations
		Condensed Consolidated Balance Sheets
		Condensed Consolidated Statements of Cash Flows
		Notes to Condensed Consolidated Financial Statements

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk

	Item 4.	Controls and Procedures

Part II.	Other Information

	Item 1.	Legal Proceedings

	Item 6.	Exhibits

Signatures

Exhibit Index