For the six months ended September 30, 2010, net sales increased 19% to $4,305,000 from $3,603,000 for the same period the previous fiscal year. A net loss of $534,000, $0.05 per share, compared to net income of $138,000, $0.01 per share, for the previous fiscal year which included the one-time before tax settlement income of $1,250,000.
Commenting on the results of the second quarter, Mr. William Spencer, Imagenetix Chief Executive Officer said: "Sales more than tripled from the first fiscal quarter as several major chains expanded Celadrin softgels and BioGuard, our novel healthy immune system innovation, to a national level. As a result of this expansion, we have initiated a national television advertising campaign for Celadrin which should give us the necessary exposure to continue rolling out product to additional retail outlets. Forward looking, Imagenetix is expanding sales of Celadrin cream into the nation's largest warehouse club store during the current quarter. We have been able to fund this growth by securing a banking relationship that provides working capital based on receivables and inventory."
About Imagenetix
Imagenetix, based in San Diego, California, is an innovator of scientifically tested, natural-based, proprietary, bioceutical products developed to enhance human health on a global basis. Imagenetix develops and formulates propriety over-the-counter topical creams, skincare products and nutritional supplements to be marketed globally through multiple channels of distribution. In addition, the company develops patentable compounds for entering into licensing agreements with pharmaceutical partners. Imagenetix is the creator of Celadrin®. Please visit, www.celadrin.com, www.bioguardhealth.comor www.imagenetix.net.
Certain matters in this news release are forward-looking statements which are subject to risks and uncertainties that could cause actual results to vary materially from those projected. Such risks and uncertainties include, but are not limited to, adverse fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in the company's SEC filings, including its Form 10-K for the year ended March 31, 2009.
Contact | Imagenetix Investor Relations | William P. Spencer | |
(858)385-2797 | Chief Executive Officer | ||
Imagenetix, Inc. | |||
Tel: (858) 674-8455 | |||
Imagenetix, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||
Net sales | $ | 3,220 | $ | 1,901 | $ | 4,305 | $ | 3,603 | ||||||
Cost of sales | 1,432 | 1,039 | 2,182 | 2,095 | ||||||||||
Gross profit | 1,788 | 862 | 2,123 | 1,508 | ||||||||||
Gross profit percent | 55.5% | 45.3% | 49.3% | 41.9% | ||||||||||
Operating expenses: | ||||||||||||||
General and administrative | 876 | 575 | 1,472 | 1,383 | ||||||||||
Payroll expense | 320 | 269 | 562 | 523 | ||||||||||
Consulting expense | 342 | 295 | 753 | 575 | ||||||||||
Operating expenses | 1,538 | 1,139 | 2,787 | 2,481 | ||||||||||
Operating income (loss) | 250 | (277) | (664) | (973) | ||||||||||
Other income | - | 1 | 1 | 2 | ||||||||||
Settlement income | - | 1,250 | - | 1,250 | ||||||||||
Interest expense | (25) | - | (114) | (2) | ||||||||||
Income (loss) before income taxes | 225 | 974 | (777) | 277 | ||||||||||
Income tax expense (benefit) | 155 | 421 | (243) | 139 | ||||||||||
