Allergy Research Group, Inc. Reports First Quarter Results

ALAMEDA, Calif., May 15, 2006 (PRIMEZONE via COMTEX) -- Allergy Research Group, Inc. (ALRG) today announced financial results for the quarter ending March 31, 2006.

ALRG announces revenues of $4,265,527 for the quarter ended March 31, 2006, an increase of 4% compared to $4,111,173 for the same period last year. The increase in sales is due to the introduction of new products and increased support from our distributors.

"I am encouraged by our continued growth and the positive affect our products bring to our customer base. We are continuing with the recruitment process to expand our sales force and look forward to the benefit derived," said Chief Executive Officer and Chairman, Dr. Stephen A. Levine, Ph.D.

Cost of sales increased $207,125 to $2,630,510 for the quarter ended March 31, 2006, compared to $2,423,385 for the quarter ended March 31, 2005. The increase corresponds to the increase in sales compounded by increased cost of materials. Gross profit margins were approximately 38% for 2006 and 41% for 2005. In addition to the increased cost of materials, there is a downward pressure on margins due to increased sales to distributors and decreased sales to retail customers. We responded to the decrease in margins by raising prices on several items in January 2006.
Net income after tax for March 31, 2006 and 2005 was $325,683 and $319,533, respectively. The increase is due primarily to increased sales and decreased operating expenses offset by decreased margins and a larger provision for income tax expense.

Complete copies of the company's financial statements, including notes to the financials, can be found on its website at

About Allergy Research Group, Inc.
Allergy Research Group, Inc. is an innovative leader in nutraceutical research and product formulation. Since its inception in 1979, the company has been noted for quality, hypoallergenic nutritional supplements and supplies products to physicians and healthcare practitioners worldwide.

Except for historical information contained herein, this release contains, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: the impact of competitive products, changes in law and regulations, adequacy and availability of insurance coverage, availability of raw materials, dependence on distributors and customers, dependence on key personnel, litigation, limitations on future financing, the effect of adverse publicity, uncertainties relating to acquisitions, managing and maintaining growth, customer demands, as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations department or via the SEC's website located at

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