Letter to shareholders from 3-17-98
Old news, but until recently it was difficult to get any news from the co. Evidently they have hired a PR firm to promote their products and stock. I hope they keep it up; NUTX should have a promising future if they can draw attention to their products.
Shareholder Letter
March 17, 1998
Dear Shareholder:
1997 stands out as a remarkable year for our company, a year of unprecedented growth, both operationally and financially.
Overall, though we expect to book a small loss for the year, we are very pleased with our accomplishments which, considered
together, are significant for a company our size.
The progress we made was not achieved by accident. We set
ambitious goals. We chose the right strategy and executed well.
We paid attention to our customers and our competitors alike.
And we raised the bar of what we expected of ourselves and
each other.
Revenues for the year totaled $4.3 million, with the greater
percentage of growth occurring towards the end of the year. The
increase in revenue was largely attributed to increased private
label supplement manufacturing.
We are pleased to report that sales momentum has continued to
build into 1998 and we anticipate first quarter 1998 revenues will
be in the range of $1.4 million, a 50% increase over the same
quarter last year. Further, we expect the results to yield a profit
for the quarter.
In 1997, Nutraceutix, Inc. established itself as an innovator in the
development of proprietary nutritional products. In this formative
year, the company secured an exclusive license for the use of the
Calcium D-Glucarate patent for the prevention of lung, breast,
prostate, liver and colon cancer. This compound was developed
by researchers at M.D. Anderson Cancer Center. Nutraceutix
then entered into a licensing agreement with Weider Nutrition for
the retail sale of products containing Glucarate. Weider has
extensive distribution of their Schiff[tm] and Great American
Nutrition[tm] branded health supplement lines to health food
stores and mass merchants.
Although delayed several months for packaging design, Weider
will begin shipping Schiff branded Glucarate products to health
food stores in the latter part of March. NuStart Glucarate
products will be shipped to mass merchants in April. In addition
to manufacturing revenues, Nutraceutix will receive a royalty on
Glucarate product sales. Beyond these retail channels,
Nutraceutix has entered into discussions with several multi-level
and direct marketing firms concerning the direct sales of
Glucarate products.
The company began installation of select pieces of high speed
equipment in the first quarter of 1997, which was completed in
the fourth quarter. Private label supplement manufacturing has
been steadily growing since its installation. A second shift began
in February to meet growing orders.
Due to the extraordinary efforts of our Colorado staff, the
company has met its goal as stated in our September 15, 1997
letter to shareholders of private label manufacturing of 50
products for 20 companies. These numbers do not include
proprietary Glucarate products.
Contributing to our private label business was the development
of our shelf stable LIVEBACr tableting process for
Lactobacillus health supplements. The company began
manufacturing of the products using this technology for Schiff,
Nature's Secret and other brands in the fourth quarter of 1997.
The company continues to produce microbial products for
agriculture. This business sector remains profitable.
In 1998, Nutraceutix will continue its emphasis on proprietary
product development. With Glucarate products soon to appear
on retail shelves, Nutraceutix has begun assisting Weider with
public relations, seminars and other educational projects focused
on the health benefits of Glucarate. We expect Glucarate sales to
parallel the gradual growth in consumer awareness as is typical of
new products in the health supplement industry.
In 1998, the company intends to become a fully reporting public
company by the filing of a FORM 10-SB registration statement
with the Securities Exchange Commission.
We appreciate the continued support of our shareholders and
wish you all a healthy new year.
Sincerely,
William D. St. John
President
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