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December 19, 2000
BOULDER, Colo.--Hauser Inc. (OTC BB:HAUS) has put its Technical Services business, including Hauser Laboratories and Shuster Laboratories, up for sale in an effort to streamline the company and focus on the production and sale of bulk herbal extracts and nutritional supplements. This move follows a key management shift announced on Nov. 2, one day before the company was effectively de-listed from the NASDAQ exchange due to failure to maintain a minimum share value of $1 and a public float value of $5 million.
Volker Wypyszyk, then president and chief executive officer, became senior executive vice president (VP) of the company's natural products division and remained a director of the company. In his place, Hauser installed Kenneth Cleveland, then senior executive VP and chief financial officer of Hauser; Cleveland is also president of Kenneth Cleveland Associates, a financial and operations consulting firm.
On Nov. 13, Hauser released poor results for its second quarter fiscal 2000, including a $10 million decline in revenues, compared to the same quarter in 1999, and a $3.1 million net loss. In the quarter, the company managed to curb most spending, except for a big rise in research costs, but its gross margin fell by five percent of sales vs. the year prior. Management cited an oversupply of botanical extracts as a culprit in the dismal performance. Cleveland added that the company noted continuing cost reduction success and expressed his belief that the company would post improved results in the second half of fiscal 2000.
Now, a week before Christmas, Hauser Labs and Shuster Labs, which compose the Technical Services division, are on the selling block. Hauser Labs provides a wide range of scientific services for the pharmaceutical, dietary supplement, plastic pipe and medical device industries. Shuster Labs provides various testing and development services for marketers, manufacturers and retailers in the consumer products industries.
Cleveland said, "The sale will permit the company to focus its resources on the production and sale of bulk herbal extracts and nutritional supplements, including the development of new products and the distribution of fine chemicals to dietary supplement manufacturers."
For more details, visit www.hauser.com.
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