EL SEGUNDO, Calif. and LONGMONT, Colo., Feb 14, 2003 (PRIMEZONE) -- Hauser, Inc. (OTCBB:HAUS) today reported its financial results for the fiscal 2003 third quarter ended December 31, 2002.
For the fiscal 2003 third quarter, total revenues were $12.0 million compared with $11.3 million in the corresponding year-earlier quarter. Net loss decreased to $1.2 million, or $0.18 per share, from a net loss of $2.3 million, or $0.41 per share, in the corresponding quarter a year ago. Loss from operations was $693,000, compared with a loss from operations of $2.2 million in the same quarter a year ago.
For the first nine months of fiscal 2003, total revenues were $39.2 million compared with $35.4 million in same period of the prior year. Net loss narrowed to $1.3 million, or $0.21 per share, from a net loss of $3.9 million, or $0.70 per share, in the corresponding period a year earlier. Income from operations was $423,000, compared with a loss from operations of $3.2 million in the first nine months of fiscal 2002.
"We have substantially reduced costs, increased manufacturing efficiencies, consolidated operations, restructured administrative activities and reduced operating assets," said Kenneth Cleveland, president and chief executive officer. "These actions, however, have not been sufficient to allow Hauser to remain in compliance with the terms of its amended credit agreement with Wells Fargo Bank."
Wells Fargo has advised the company that certain events of default had occurred, including a payment default, and that it will not waive these events of default. Hauser has been unable to secure alternative financing that would permit it to satisfy its obligations to Wells Fargo. If Wells Fargo is not willing to defer collection of the past due amounts, the company may be forced to seek bankruptcy protection.
Hauser has established a special committee of independent directors to consider and evaluate a number of alternatives, which would permit the company to satisfy its cash needs and its obligations to its creditors. It is likely that any alternative will require Hauser to file a voluntary petition under Chapter 11 of the Bankruptcy Code.
Hauser, headquartered in El Segundo, California and Longmont, Colorado, is a leading supplier of herbal extracts and nutritional supplements. Hauser also provides chemical engineering services and contract research and development. Hauser's products and services are principally marketed to the pharmaceutical, dietary supplement and food ingredient businesses. Hauser's business units include: Botanicals International, ZetaPharm and Hauser Contract Research Organization.
Certain oral and written statements of management of the Company included in this Press Release and elsewhere may contain forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created thereby. These statements include the plans and objectives of management for future operations. The forward-looking statements included herein and elsewhere are based on current expectations that involve judgments which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that the forward-looking statements will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.