In the news release, The Quigley Corporation Reports Third Quarter
2009 Results, issued 12-Nov-2009 by The Quigley Corporation over PR
Newswire, we are advised by the company that the basic and diluted
earnings per share sections of the first table, Net income (loss)
for the three months ended September 30, 2009 should read "$0.09"
rather than "($0.09)" as originally issued inadvertently. The
complete, corrected release follows: DOYLESTOWN, Pa., Nov. 12
/PRNewswire-FirstCall/ -- The Quigley Corporation, (NASDAQ:QGLY)
http://www.quigleyco.com/ today reported net sales of $5.0 million
for the three months ended September 30, 2009, compared to net
sales of $6.4 million for the three months ended September 30,
2008. The Company generated net income for the three months ended
September 30, 2009, of $1.2 million, or $0.09 per share, compared
to net income of $879,000, or $0.07 per share, for the three months
ended September 30, 2008. Results for the third quarter of 2009
compared to the third quarter of 2008 primarily reflect a decrease
in net sales of $1.4 million and a corresponding decrease of
$467,000 in gross profit. These decreases were offset by reductions
of $236,000 in sales, marketing and administration expenses and
$614,000 in research and development costs. The decrease in these
costs was principally due to reduced personnel costs, and a
reduction in clinical study related costs incurred as a result of
the completion of the QR-333 Diabetic Neuropathy Phase IIb study,
results of which were previously reported on July 22, 2009. For the
nine months ended September 30, 2009, net sales were $10.7 million,
compared to net sales of $13.7 million, for the nine months ended
September 30, 2008. The net loss for the nine months ended
September 30, 2009 was $5.6 million, or ($0.43) per share, compared
to a net loss of $3.6 million, or ($0.28) per share, for the nine
months ended September 30, 2008. The net loss for the nine months
ended September 30, 2009 includes approximately $2.5 million in
costs incurred (primarily legal expenses) as a consequence of the
proxy contest between differing slates of proposed boards of
directors. In addition to the effect of the costs incurred in the
proxy contest, the financial results for the nine months ended
September 30, 2009 as compared to the nine months ended September
30, 2008 reflect a decrease in net sales of $3.0 million and a
corresponding $2.3 million decrease in gross profit. These
decreases were offset by a reduction of $1.3 million in sales,
marketing and administration expenses and $2.6 million in research
and development costs. The decrease in these costs was principally
due to the aforementioned reduction in personnel costs, lower head
count and a reduction in clinical study related costs incurred as a
result of the completion of the QR-333 Diabetic Neuropathy Phase
IIb study. Additionally, the net loss for the nine months ended
September 30, 2008 included a one-time aggregate benefit of
$875,000 as a result of income from discontinued operations of
$139,000 and a gain on the disposal of the health and wellness
operations of $736,000. The gross profits for both the three and
nine month periods ended September 30, 2009 declined compared to
the three and nine month periods ended September 30, 2008 due to
the net effect of an increase in sales allowances (returns,
discounts and cooperative marketing incentives), an adverse impact
to net sales as a consequence of the inventory reduction programs
maintained by the Company's larger retail customers, and costs
associated with the Elizabethtown manufacturing facility closing.
These items were offset by the elimination of the production and
facility overhead expenses attributable to the Company's
Elizabethtown manufacturing facility that was closed in June 2009.
Gross margins are influenced by fluctuations in quarter-to-quarter
production volume, fixed production costs and related overhead
absorption, and the timing of shipments to customers which are
factors of the seasonality of the Company's sales activities and
products. Ted Karkus, Chairman and CEO said, "During the third
quarter of 2009 we worked diligently to create a strong foundation
for the Company's future. We focused on reducing costs and
improving our position in the marketplace. We implemented staff and
other overhead reductions without adversely impacting our
efficiency or performance, and we are more strategically focused on
our sales and marketing initiatives. As a result of our efforts, we
achieved an increase in net income year-over-year despite a decline
in net sales. In addition, we are actively focused on our key
retail relationships. We have been meeting with our retail
customers to make certain we are in sync with their changing needs
and that we retain important shelf space and product placement.
These visits have already significantly strengthened our working
relationships with important retailers." Mr. Karkus further stated,
"We have projects underway to improve our product packaging,
product positioning and the communication of the Cold-EEZE(R)
message to consumers. Our new marketing efforts are designed to
increase sales, generate brand loyalty and collect critical
information about our customers. We are looking for opportunities
for future growth that may include expanding our OTC new product
pipeline, product acquisitions and other line and brand extensions.
The Company continues to focus on data-driven strategic planning.
Our goal is to avoid investing in marketing efforts, brand
development initiatives and new product launches that do not add to
the Company's shareholder value. While we are pleased with this
initial progress, we are still in the early phases of our
restructuring and rebuilding efforts and look forward to delivering
significantly better performance in the months and years to come."
About The Quigley Corporation The Quigley Corporation (NASDAQ:QGLY)
(http://www.quigleyco.com/) is a diversified natural health medical
science company. Its Cold Remedy segment is a leading marketer and
manufacturer of the Cold-EEZE(R) family of lozenges and sugar free
tablets clinically proven to significantly reduce the severity and
duration of the common cold. Cold-EEZE(R) customers include leading
national wholesalers and distributors, as well as independent and
chain food, drug and mass merchandise stores and pharmacies. The
Quigley Corporation has several wholly owned subsidiaries including
Quigley Manufacturing Inc., which consists of an FDA approved
facility to manufacture Cold-EEZE(R) lozenges and fulfill other
contract manufacturing opportunities, and Quigley Pharma, Inc.,
(http://www.quigleypharma.com/), which conducts research in order
to develop and commercialize a pipeline of patented botanical and
naturally derived potential prescription drugs. Forward-Looking
Statements Certain statements in this press release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve known and
unknown risk, uncertainties and other factors that may cause the
Company's actual performance or achievements to be materially
different from the results, performance or achievements expressed
or implied by the forward-looking statement. Factors that impact
such forward-looking statements include, among others, changes in
worldwide general economic conditions, changes in interest rates,
government regulations, and worldwide competition. (Tables Follow)
Condensed Consolidated Statements of Operations (unaudited) The
following represents condensed financial statements (in thousands,
except per share data): Three- Three- Nine- Nine- Months Months
Months Months Ended Ended Ended Ended Sept. 30, Sept. 30, Sept. 30,
Sept. 30, 2009 2008 2009 2008 ($) ($) ($) ($) ------ ------ ------
------ Net sales 4,977 6,354 10,712 13,728 Cost of sales 1,362
2,272 4,454 5,178 Gross profit 3,615 4,082 6,258 8,550 Operating
costs and expenses: Sales & marketing expenses 607 652 3,424
3,450 Administrative 1,470 1,661 7,502 6,200 Research &
development 341 955 975 3,630 2,418 3,268 11,901 13,280 Income
(loss) from operations 1,197 814 (5,643) (4,730) Interest and other
income 5 65 20 286 Income (loss) from continuing operations before
income taxes 1,202 879 (5,643) (4,444) Income tax (benefit) - - - -
Income (loss) from continuing operations 1,202 879 (5,643) (4,444)
Discontinued operations Gain on disposal of health and wellness
operations - - - 736 Income from discontinued operations - - - 139
Net income (loss) 1,202 879 (5,623) (3,569) ===== === =======
======= Basic earnings per share Income (loss) from continuing
operations $0.09 $0.07 ($0.43) ($0.35) Income from discontinued
operations - - - 0.07 Net income (loss) $0.09 $0.07 ($0.43) ($0.28)
======= ===== ======= ======= Diluted earnings per share Income
(loss) from continuing operations $0.09 $0.07 ($0.43) ($0.35)
Income from discontinued operations - - - 0.07 Net income (loss)
$0.09 $0.07 ($0.43) ($0.28) ======= ===== ======= ======= Weighted
average common shares outstanding Basic 12,996 12,885 12,940 12,869
Diluted 13,110 13,140 12,940 12,869 Selected Condensed Consolidated
Balance Sheet Data The following represents condensed financial
data (in thousands) at September 30, 2009 and December 31, 2008:
2009 2008* ($) ($) (unaudited) ----------- ----------- Cash &
cash equivalents 8,945 11,957 Accounts receivable, net 2,487 4,524
Inventory 3,180 3,001 Total current assets 15,444 20,667 Total
assets 18,188 24,369 Total current liabilities 5,911 6,595 Total
stockholders' equity 12,277 17,774 * Derived from December 31, 2008
audited Financial Statements CONTACT: Ted Karkus Carl Hymans
Chairman of the Board, CEO G.S. Schwartz & Co. (215) 345-0919
ext. 114 (212) 725-4500 ext. 304 DATASOURCE: The Quigley
Corporation CONTACT: Ted Karkus, Chairman of the Board, CEO, The
Quigley Corporation, +1-215-345-0919 ext. 114; Carl Hymans, G.S.
Schwartz & Co. (212) 725-4500 ext. 304, Web Site:
http://www.quigleyco.com/
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