from the 10k, filed at 5pm yesterday,
Nutritional Products
Net sales of nutritional products were $16.7 million for the year ended January 31, 2008, and represented 8.1% of consolidated net sales. Net sales of nutritional products were $20.8 million for the year ended January 31, 2007. This amount represented 30.3% of consolidated net sales for the prior-year period. The decrease in net sales of nutritional products of approximately $4.2 million, or 20%, primarily was due the loss of one of VLI's largest customers, the Rob Reiss Companies, which represented approximately 20% of this segment's net sales in the prior-year, and a 34% reduction in the level of net sales made to VLI's largest customer, TriVita Corporation ("TriVita"). Net sales to TriVita comprised approximately 25% of VLI's net sales for the current year. Despite an extremely competitive business environment, this business increased its sales to three of VLI's largest customers, CyberWize, Renew Life and Market America, during the current year.
VLI is primarily a contract manufacturer of nutritional products. The ability to quickly replace lost customers or to increase the product offerings sold to existing customers is hampered by the long sales cycle inherent in our type of business. The length of time between the beginning of contract negotiation and the first sale to a new customer could exceed six months including extended periods of product testing and acceptance.
biz.yahoo.com |
