DOYLESTOWN, Pa., Nov. 12 /PRNewswire-FirstCall/ -- The Quigley Corporation, www.quigleyco.com today reported net sales of $5.0 million for the three months ended September 30, 2009, compared to net sales of $6.4 million for the three months ended September 30, 2008.
Results for the third quarter of 2009 compared to the third quarter of 2008 primarily reflect a decrease in net sales of $1.4 million and a corresponding decrease of $467,000 in gross profit. These decreases were offset by reductions of $236,000 in sales, marketing and administration expenses and $614,000 in research and development costs. The decrease in these costs was principally due to reduced personnel costs, and a reduction in clinical study related costs incurred as a result of the completion of the QR-333 Diabetic Neuropathy Phase IIb study, results of which were previously reported on July 22, 2009.
The net loss for the nine months ended September 30, 2009 was $5.6 million, or ($0.43) per share, compared to a net loss of $3.6 million, or ($0.28) per share, for the nine months ended September 30, 2008. The net loss for the nine months ended September 30, 2009 includes approximately $2.5 million in costs incurred (primarily legal expenses) as a consequence of the proxy contest between differing slates of proposed boards of directors. In addition to the effect of the costs incurred in the proxy contest, the financial results for the nine months ended September 30, 2009 as compared to the nine months ended September 30, 2008 reflect a decrease in net sales of $3.0 million and a corresponding $2.3 million decrease in gross profit. These decreases were offset by a reduction of $1.3 million in sales, marketing and administration expenses and $2.6 million in research and development costs. The decrease in these costs was principally due to the aforementioned reduction in personnel costs, lower head count and a reduction in clinical study related costs incurred as a result of the completion of the QR-333 Diabetic Neuropathy Phase IIb study. Additionally, the net loss for the nine months ended September 30, 2008 included a one-time aggregate benefit of $875,000 as a result of income from discontinued operations of $139,000 and a gain on the disposal of the health and wellness operations of $736,000.
Ted Karkus, Chairman and CEO said, "During the third quarter of 2009 we worked diligently to create a strong foundation for the Company's future. We focused on reducing costs and improving our position in the marketplace. We implemented staff and other overhead reductions without adversely impacting our efficiency or performance, and we are more strategically focused on our sales and marketing initiatives. As a result of our efforts, we achieved an increase in net income year-over-year despite a decline in net sales. In addition, we are actively focused on our key retail relationships. We have been meeting with our retail customers to make certain we are in sync with their changing needs and that we retain important shelf space and product placement. These visits have already significantly strengthened our working relationships with important retailers."
The Quigley Corporation (http://www.Quigleyco.com) is a diversified natural health medical science company. Its Cold Remedy segment is a leading marketer and manufacturer of the Cold-EEZE(R) family of lozenges and sugar free tablets clinically proven to significantly reduce the severity and duration of the common cold. Cold-EEZE(R) customers include leading national wholesalers and distributors, as well as independent and chain food, drug and mass merchandise stores and pharmacies. The Quigley Corporation has several wholly owned subsidiaries including Quigley Manufacturing Inc., which consists of an FDA approved facility to manufacture Cold-EEZE(R) lozenges and fulfill other contract manufacturing opportunities, and Quigley Pharma, Inc., (http://www.QuigleyPharma.com), which conducts research in order to develop and commercialize a pipeline of patented botanical and naturally derived potential prescription drugs.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risk, uncertainties and other factors that may cause the Company's actual performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statement. Factors that impact such forward-looking statements include, among others, changes in worldwide general economic conditions, changes in interest rates, government regulations, and worldwide competition.
The following represents condensed financial statements (in thousands, except per share data):
Selected Condensed Consolidated Balance Sheet Data
CONTACT: Ted Karkus, Chairman of the Board, CEO, The Quigley Corporation,
+1-215-345-0919 ext. 114; Carl Hymans, G.S. Schwartz & Co. (212) 725-4500
ext. 304, carlh@schwartz.com
Web site: http://www.quigleyco.com/
