Martek Biosciences Corp. Reports An Increase in 2Q Profits by 20% (MATK)
Martek Biosciences Corp. (Nasdaq: MATK) reported on Wednesday that its fiscal 2009 second-quarter profit rose by 20 percent, but warned that the sales of its infant formula could drop by as much as $15 million by the end of the year.
Martek is a leader in the innovation and development of omega-3 DHA products that promote health and wellness through every stage of life. Their products are used in infant formula, dietary supplements and food products such as yogurt and juice.
The company earned $11 million, or 33 cents per share, compared with a net income of $9.2 million, or 28 cents per share, during the same period a year prior. Revenue rose 2 percent to $92.4 million from $90.7 million.
Analysts polled by Thomas Reuters expected the company to earn 29 cents per share and $89 million in revenue.
Sales of its nutritional supplements to the nursing market rose to a record $9.8 million. But the company warned that its infant formula sales in the third and fourth quarters could drop as retailers trim their inventories of the product. However, the company anticipates that infant formula revenue will grow in fiscal 2010 as a result of strong demand for infant formula products containing its nutritional oils DHA and ARA.
Omega-3 fatty acids are believed to play an important role in brain and eye development. The company is eagerly awaiting the results of a National Institutes of Health study that could show that Martek’s DHA can slow the progression of Alzheimer’s disease.
Joshua Sherman
