Hauser Puts Tech Division Up for Sale 27331

January 1, 2001

1 Min Read
Hauser Puts Tech Division Up for Sale


Hauser Puts Tech Division Up for Sale

BOULDER, Colo.--Hauser Inc. (OTC BB:HAUS) on Dec. 18 put itsTechnical Services business, including Hauser Laboratories and ShusterLaboratories, up for sale in an effort to streamline the company and focus onthe production and sale of bulk herbal extracts and nutritional supplements.This move follows a key management shift announced on Nov. 2, one day before thecompany was effectively de-listed from the NASDAQ exchange due to failure tomaintain a minimum share value of $1 and a public float value of $5 million.

Volker Wypyszyk, former president and chief executive officer, became seniorexecutive vice president (VP) of the company's natural products division andremained a director of the company. In his place, Hauser installed KennethCleveland, previously the senior executive VP and chief financial officer ofHauser; Cleveland is also president of Kenneth Cleveland Associates, a financialand 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 in1999, and a $3.1 million net loss. In the quarter, the company managed to curbmost spending, except for a big rise in research costs, but its gross marginfell by five percent of sales vs. the year prior. Management cited an oversupplyof botanical extracts as a culprit in the dismal performance.

Then on Dec. 18, Hauser Labs and Shuster Labs, which compose the TechnicalServices division, were put on the selling block. Cleveland said, "The salewill permit the company to focus its resources on the production and sale ofbulk herbal extracts and nutritional supplements, including the development ofnew products and the distribution of fine chemicals to dietary supplementmanufacturers." For more details, visit www.hauser.com.

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