FREMONT, Calif., Aug. 5 /PRNewswire/ -- Human Pheromone Sciences, Inc. (Nasdaq: EROX - news), the first and only company to be granted patents for inclusion of synthesized human pheromones in consumer products today announced a net loss of $1,395,871 ($0.14 per share) on net sales of 1,905,257 for its second quarter ended June 30, 1998, compared with a net loss for the prior year quarter of $3,937,917, or ($0.38 per share) on net sales of $3,817,542. For the six months, the net loss was reduced to $2,168,941 ($0.21 per share) from $3,748,434 ($0.37 per share) in 1997 on sales of $5,268,418 as compared with $8,913,831 in the prior year six months. Included in the current year quarter is a provision for expenses to be incurred in connection with a planned operating management reorganization.
In analyzing the results for the quarter and the six months periods, William P. Horgan, Chief Executive Officer, noted that sales of the Company's core products, REALM(R) Men and Realm(R) Women, the first and only products to contain synthesized human pheromones, were slightly behind prior year sales levels, reflecting a malaise in the prestige-priced fragrances in U.S. department stores. ''The vast majority of the sales shortfall from the prior year is a result of approximately $3.6 million in shipments in connection with the introduction of the inner Realm(R) fragrance line into the better department stores in 1997. The continued weakness of the brand in this class of trade resulted in minimal sales in 1998, and the Company recorded approximately $650,000 in retailer returns during the most recent six months,'' Horgan stated.
In response to this ongoing pattern, the Company has recently undertaken several programs designed to segment its selling and marketing approach for each of the product lines. REALM product will continue to be promoted in the better department stores and selected international and secondary markets. inner REALM will be the lynchpin of a series of human pheromone products offered in the more price-sensitive secondary markets and sold through the Company's distributor network. This strategy is intended to eliminate product confusion in the department stores and to make the Company's patented technology available to a broader range of consumers as it enters the important holiday season |
