Naturade, Inc. Reports Year End Results
PARAMOUNT, Calif., Dec. 29 /PRNewswire/ -- Naturade, Inc.
(OTC Bulletin Board: NRDC) today reported a net loss for the fiscal year ended
September 30, 1998 of ($4,109,815), or ($0.84) per share, on net sales of
$13,506,972, compared with net income a year earlier of $248,295, or $0.08 per
share, on net sales of $12,578,419.
For the fourth quarter ended September 30, 1998, the company reported a
net loss of ($1,799,740), or ($0.37) per share, on net sales of $3,693,195,
compared with a net loss a year earlier of ($188,588), or ($0.06) per share,
on net sales of $3,310,083.
Bill D. Stewart, president and chief executive officer, said, "1998 was a
year of transition for Naturade -- a year of challenge, a year of innovation
and a year of investment in the future of our company.
"The challenge of 1998 was to prepare Naturade for the new opportunities
that now exist in the market and to build a strong foundation from which the
company can move to its next plateau. Our new senior management, brought on
board earlier this year, developed what we believe to be one of the most
dynamic sales and marketing programs in our industry. The attendant increase
in development and advertising costs, as well as increased selling, general
and administrative costs relating to our new strategy were, in great measure,
responsible for the results in fiscal year 1998, as were write-offs for
slow-moving and obsolete inventory and a reserve for other items that did not
meet our initial sales expectations."
Stewart pointed out, "Investment of significant resources into the
development of our new product line, The Chinese Way(TM), added another
substantial block to our foundation for the future while adding to our expense
structure. Market research done for this new product line of herbal remedies
has indicated positive consumer acceptance of traditional Chinese medicine,
and initial sales results of the four products in this line have been
encouraging.
"Moreover, our Kids' Plex(TM) product line of nutritional powders has
become a leading seller in outlets such as stores owned by General Nutrition
Companies, Inc. as a result of our new marketing and advertising strategy.
During the past year this product line had its packaging redesigned to better
highlight the products' benefits and the line was expanded with the
introduction of a nutritional bar and new powder flavors. We also designed
new packaging to carry Kids' Plex(TM) into grocery, drug and discount chains.
"All of our efforts during the past year have been to prepare Naturade for
a new beginning in 1999. We have developed our strategy to take advantage of
changes in the marketplace and to guide us to the achievement of our primary
objective -- the enhancement of shareholder value.
"On another note, it is with a sense of loss that I announce the
resignation of our chairman, Ronald Ahrens. He has chosen to resign for
personal reasons, primarily to spend more time with his family and increase
his involvement in family affairs. The Naturade team will miss him and the
contributions he has made to our development." |
