Japan Launch Hurts Mannatech 3Q

January 1, 2001

1 Min Read
Japan Launch Hurts Mannatech 3Q

Japan Launch Hurts Mannatech 3Q

COPPELL, Texas--MannatechInc. (NASDAQ:MTEX) reported declined revenues and earnings for its third quarterended Sept. 30. Net sales fell to $36.2 million from $45.8 million sold in thesame period last year. Gross margin fell almost five percent of sales, whileoperating expenses expanded to 46 percent of sales from 32 percent of salesrecorded a year ago. As a result, the company posted a net loss for the quarterof $1.5 million or $.06 per share, compared to $3.2 million or $.13 per shareearned in the comparable 1999 quarter.

In reporting the weak results, the company pointed to the opening of itsJapan operations as the culprit. Substantial costs associated with theinfrastructure of opening the Japan business surfaced in late June 2000."We believe with the completion of the openings of the United Kingdom andJapan operations, we hope to be poised for growth in the upcoming year, as wecan now begin to develop our international markets," said Robert Henry,chief executive officer. However, management reported that short term loss islikely, as Mannatech's decision to shut down its Internet Health Group Inc.subsidiary by the end of the current year will contribute to an expected lossfor fourth quarter 2000.

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