Advanced Nutraceuticals Suffers Loss in 2QAdvanced Nutraceuticals Suffers Loss in 2Q
June 1, 2000
Advanced Nutraceuticals Suffers Loss in 2Q
HOUSTON--NutritionFor Life parent company Advanced Nutraceuticals Inc. (NASDAQ:ANI) posted a significant netloss despite a significant sales growth in its second quarter ended March 31. Revenuesreached $18.4 million, up from $16.5 million sold in the comparable 1999 quarter. However,gross margin fell sharply to 32 percent of sales from 50 percent of sales achieved a yearago. Operating expenses improved slightly, down less than one point as a percentage ofsales, but did little to curb the downturn of the bottom line. As a result, the companylogged a net loss of $.42 million or $.05 per share, compared to a net gain of $.2 millionor zero cents per share earned in the equivalent 1999 quarter.
According to Gregory Pusey, president and chairman, management is scrutinizing allareas of operations for opportunities to reduce costs, increase revenues and return fromthe red. "Each of ANI's subsidiaries has substantial potential for growth andprofitability," he said. "Our immediate challenge is to improve operatingresults."
The second quarter results include results from Bactolac Pharmaceutical Inc. and AshCorp., two pharmaceutical and nutraceutical product manufacturers acquired by ANI duringthe first quarter of 2000. Results from distribution activities were provided solely byANI's Nutrition for Life subsidiary, which markets nutritional products through a networkof independent distributors.
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