SAN DIEGO, Feb. 9 /PRNewswire-FirstCall/ -- Imagenetix, Inc. (OTC Bulletin Board: IAGX) announced today results for the three and nine months ended December 31, 2009. Net sales decreased 15% for the third quarter of fiscal year 2010 to $1,765,000 from $2,084,000 for the same period of last year. For the nine months ended December 31, 2009, net sales decreased 12% to $5,368,000 from $6,134,000 for the same period of last year.
Net loss for the third quarter was $294,000 or $.03 per share compared to break even for the same period of the prior fiscal year. Net loss for the nine months ended December 31, 2009, was $156,000 or $0.01 per share compared to net profit of $786,000 or $0.07 per share for the same period of last year.
Commenting on the results of the third quarter, Mr. William Spencer, Imagenetix Chief Executive Officer said: "We are encouraged by the increase in sales in the Food, Drug and Mass Market segments of our business for Celadrin, our joint health product and BioGuard, our recently introduced immune boosting probiotic for the promotion of ear, nose and throat health. During the third quarter, revenue from this segment increased by $733,000 compared to the previous year. We anticipate expanding television advertising in concert with store expansion to increase awareness of both Celadrin and BioGuard. We believe this marketing program for the mass market segment will continue to result in improved sales."
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.com or 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 Nine Months
Ended Ended
December 31, December 31,
------------ ------------
2009 2008 2009 2008
---- ---- ---- ----
Net sales $1,765 $2,084 $5,368 $6,134
Cost of sales 878 1,019 2,973 3,380
------ ----- ----- -----
Gross profit 887 1,065 2,395 2,754
------ ----- ----- -----
Gross profit percent 50.3% 51.1% 44.6% 44.9%
Operating expenses:
General and administrative 573 565 1,956 1,590
Payroll expense 325 249 849 842
Consulting expense 434 256 1,009 845
--- --- ----- ---
Operating expenses 1,332 1,070 3,814 3,277
Operating income (loss) (445) (5) (1,419) (523)
Other income 3 5 6 23
Settlement income - - 1,250 1,785
Interest expense - - (2) (1)
--- --- --- ---
Income (loss) before income taxes (442) - (165) 1,284
Income tax expense (benefit) (148) - (9) 498
---- ---- ---- ----
Net income (loss) $(294) $- $(156) $786
----- ----- ----- ----
Income (loss) per share:
Basic $(0.03) $- $(0.01) $0.07
Diluted $(0.03) $- $(0.01) $0.07
Weighted average common shares
outstanding:
Basic 11,011 11,011 11,011 10,985
Diluted 11,011 11,011 11,011 11,009
Imagenetix, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
December March
31, 2009 31, 2009
-------- --------
Assets:
Current assets:
Cash and cash equivalents $1,528 $1,226
Accounts receivable, net 1,338 1,096
Inventories, net 967 1,337
Prepaid expenses and other current
assets 166 109
Deferred tax asset 550 535
--- ---
Total current assets 4,549 4,303
Property and equipment, net 91 116
Long-term prepaid expenses 21 30
Other assets 114 134
------ ------
Total assets $4,775 $4,583
------ ------
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $537 $274
Accrued liabilities 72 81
Income tax payable - 70
Customer deposits 28 59
Contract payable 107 43
Short term license payable - 3
--- ---
Total current liabilities 744 530
Stockholders' equity 4,031 4,053
------ ------
Total liabilities and stockholders'
equity $4,775 $4,583
------ ------
SOURCE Imagenetix, Inc.
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