SIGA Technologies reported financial results for the periods ending June 30, revealing substantial year-over-year declines offset by continued profitability and shareholder returns. The company generated $37 million in TPOXX sales during the quarter, comprising $24 million in intravenous TPOXX delivered to the US strategic national stockpile and $13 million in oral TPOXX sold to two international buyers. Chief Executive Diem Nguyen highlighted the geographic diversity of deliveries across the US, Europe, and Asia-Pacific regions across multiple product formulations.
A significant milestone occurred with the completion of the final procurement order under the 19C government contract, which had served as the foundation of SIGA’s revenue for years. The company maintained profitability throughout this transition, reporting net income of $12.5 million for the quarter and $9 million for the first half of the year. The company also declared a special cash dividend of $0.6 per share on March 26, which was paid April 23 to shareholders of record as of April 7.
When measured against the prior year, however, the results showed significant contraction. Quarterly product sales declined to $37.9 million from $79.1 million, while six-month product sales fell to $41.4 million from $84.9 million. Operating income dropped to $13.9 million from $45.7 million in the quarter, with six-month operating income declining to $8.6 million from $43.4 million. Diluted earnings per share fell to $0.17 from $0.49 for the quarter and to $0.13 from $0.49 for the six-month period.
The sharp earnings decline reflected the completion of the major government contract that had driven prior-year revenues. Hedge fund ownership decreased modestly from 20 funds to 18, while short interest stood at 8.26% of float. The company traded at a forward price-to-earnings ratio of 2.99 as of September 4, a valuation that analysts noted typically reflects limited expectations for earnings growth or discounts for revenue volatility and contract dependency.
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