XELR8 Sales Grow, Seeks Additional FundsXELR8 Sales Grow, Seeks Additional Funds
August 21, 2006
DENVER—VitaCube Systems Holdings Inc., which does business as XLER8 Holdings, (AMEX:PRH) reported improved results for its second quarter, including more than doubled revenues, widened gross margin and a slightly trimmed net loss. Revenues climbed 159 percent to $0.58 million, while gross margin improved to 71.2 percent from 52.4 percent a year ago. Net loss declined 3.4 percent to $1.01 million or $0.10 loss per share from $1.04 or $0.11 per share lost in 3Q last year. The company said its number of direct selling professionals grew by 684, bringing the total distributors to 2,722.
“Although we continue to be pleased with the steady revenue increases we are achieving on a quarter-over-quarter basis, we still have a great deal of hard work ahead of us to accomplish our ultimate goal of achieving profitability,” said Earnest Mathis, chairman and chief executive officer (CEO) of XELR8 Holdings (www.xelr8.com). “With a defined objective of 6,500 distributors essential to achieve break even cash flow, we continue to focus our attention and marketing dollars on expanding our national direct selling network through local, regional and national rallies, and compelling incentive and awards programs. Moreover, we have begun to actively explore new product line expansion opportunities to promote even greater revenue growth in coming quarters. Collectively, we are indeed gaining some traction as reflected by the 46-percent net increase in the number of distributors that comprise our national direct selling team since the end of last year.” He noted to ensure the company has the necessary tools and resources required to fully execute its business plan on a moving forward basis, it will need to secure additional financing. “In this regard, we have initiated discussions with various funding sources, including individual investors, strategic equity partners and investment banking groups, to assess available financing options and to determine the best course of action to fund our company’s future growth,” he said.
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