MONTREAL, Jan. 17 /PRNewswire-FirstCall/ - DRAXIS Health Inc. (TSX: DAX)(NASDAQ: DRAX) currently estimates that net earnings for the fourth quarterended December 31, 2007 will be approximately a loss of 1 cent per share. TheCompany further estimates that net earnings per share for the 2007 fiscal yearwill be 4 cents. In addition, net operating cash flows for the year endedDecember 31, 2007 are expected to be approximately $13 million. All amountsare expressed in U.S. dollars. These amounts are unaudited and subject tofinal adjustments, if necessary.
Net earnings for the fourth quarter of 2007 improved 4 cents over thethird quarter of 2007, excluding severance charges in both quarters.
Results for the fourth quarter of 2007 were impacted by the slowdown inthe nuclear medicine industry during December related to a shortage of medicalisotopes. Results were also impacted by changes made by DRAXIS Pharmacustomers to their shipping schedules and the timing of product demand. Inaddition, DRAXIS rescheduled certain revenue producing service activities into2008.
Results for the fourth quarter include one-time severance expenses relatedto decisions to reduce corporate overheads, including closing the Company'soffices in Mississauga, Ontario early in 2008. Severance expenses in thefourth quarter of 2007 resulted in a charge to net earnings of approximately 3cents per share as previously disclosed. Accordingly, net earnings per share,excluding severances, amounted to positive net earnings of 2 cents per sharefor the quarter.
DRAXIS is scheduled to report results for the fourth quarter and year endbefore the opening of trading on Thursday, February 7, 2008. A conference callwith management to discuss the fourth quarter results and operating activitiesis scheduled for 10:00 AM (ET) on that date.
About DRAXIS Health Inc.
DRAXIS Health, through its wholly owned operating subsidiary, DRAXISSpecialty Pharmaceuticals Inc., provides products in three categories: sterileproducts, non-sterile products and radiopharmaceuticals. Sterile productsinclude liquid and freeze-dried (lyophilized) injectables plus sterileointments and creams. Non-sterile products are produced as solid oral andsemi-solid dosage forms. Radiopharmaceuticals are used for both therapeuticand diagnostic molecular imaging applications. Pharmaceutical contractmanufacturing services are provided through the DRAXIS Pharma division andradiopharmaceuticals are developed, produced, and sold through the DRAXIMAGEdivision. DRAXIS employs approximately 500 staff in its Montreal facility.
This news release contains forward-looking statements within the meaningof Section 27A of the Securities Act of 1933, as amended (the "SecuritiesAct") and Section 21E of the Securities Exchange Act of 1934, as amended (the"Exchange Act") and as contemplated under other applicable securitieslegislation. These statements can be identified by the use of forward-lookingterminology such as "may," "will," "expect," "anticipate," "estimate,""continue," "plan," "intend," "believe" or other similar words. Thesestatements discuss future expectations concerning results of operations orfinancial condition or provide other forward-looking information. Our actualresults, performance or achievements could be significantly different from theresults expressed in, or implied by, those forward-looking statements. Youshould not place undue reliance on any forward-looking statement, which speaksonly as of the date made.
These statements are not guarantees of future performance. By theirnature, forward-looking statements involve numerous assumptions, known andunknown risks, uncertainties and other factors that may cause the actualresults or performance of the Company to be materially different from suchstatements or from any future results or performance implied thereby. Factorsthat could cause the Comp