DENVER, May 15, 2006 (BUSINESS WIRE) -- Lifeline Therapeutics, Inc. (LFLT) , maker of Protandim(R), today announced revenues of $1,390,623 and a loss of $(670,911), or $(0.03) per share, for its third fiscal quarter ended March 31, 2006. For its second fiscal quarter ended December 31, 2005, the Company's revenues were $1,711,752 and a loss of $(571,044) or $(.03) per share. For its third fiscal quarter of FY2005 ended March 31, 2005, the Company's revenues were $25,819, resulting in a loss of $(1,519,829), or $(0.09) per share.
Stephen K. Onody, CEO of Lifeline Therapeutics, commented, "Although we are disappointed in the quarter-over-previous quarter decline in direct sales revenue (18% third quarter versus second quarter), we believe our focused marketing initiatives are beginning to take effect. Sales to our GNC retail partner, currently reflected in deferred revenue, remain in excess of $200,000 per quarter. Our gross margins remain strong at 79%, and operating expenses, at $1,811,785, decreased by $143,000, or 7%, from the preceding quarter. At March 31, 2006, the Company had cash of $4.7 million, and the balance sheet remains healthy with no significant debt.
"As we continue to take actions to reposition the Company and the product, we are focused on driving sales growth and making a public relations impact. Since our last earnings report, we have:
-- Hired a dedicated e-commerce and direct marketing person, charged with growing our direct sales franchise. To assist this effort, we are consulting with the former e-commerce Vice President/Director of EAS, a supplement and nutrition company;
-- Moved forward on signing other retailers and distribution partners;
-- Signed an agreement with MyMedLab, Inc. to provide TBARS laboratory tests for measuring Protandim(R)'s effect on individuals' oxidative stress. This will give all consumers the opportunity to 'Put Protandim(R) to the Test'. This is part of our 'Partnership in Wellness' initiative;
-- Conducted a consumer research study, for which we interviewed almost 500 consumers, then held focus groups to fine-tune upcoming messaging;
-- Continued our media tour around the release of Dr. Joe McCord's data from a human study published in the scientific and peer reviewed journal, Free Radical Biology & Medicine (Jan. 15, 2006), which demonstrated Protandim(R) was able to reduce oxidative stress in men and women. Dr. McCord is now Lifeline Therapeutics' Director of Science. The tour includes:
-- Dr. Joe McCord participated in a 2-hour radio interview
with Tom Martino on his syndicated radio show. Highlights
of the interview are on the Protandim(R) website;
-- Dr. Sally Nelson, lead author of the peer reviewed paper
and now Lifeline's Science Coordinator, has participated
in a radio interview which has been and will be heard
across the country;
-- National radio advertising on Premiere Radio and Westwood
One networks will continue. The nationally syndicated
radio shows include The Dr. Dean Edell Show, The Dr. Laura
Program, Troubleshooter Tom Martino, The Jim Rome Show,
and FOX Sports Radio;
-- Dr. Joe McCord has been invited to participate in an
upcoming interview on The Health Radio Network; and
-- Dr. Sally Nelson has presented the data from the human
study published in the scientific and peer reviewed
-- the OCC Congress 2006 - the XIIth Annual Meeting of
the Oxygen Club of California on Oxidants and
Antioxidants in Biology; and
-- the SupplySide East International Conference.
Other recent initiatives include:
-- Launch of our 'Women's Initiative' where we team with leading companies and organizations to spread our health and wellness message;
-- 'The Baby Boomer Survival Kit(TM)' will feature
Protandim(R) as a solution for healthy aging. The program
kicks off in mid-May with the launch of the website
www.babyboomerkit.com, and a variety of media activities
will follow. These include advertorials in Psychology
Today and More magazines, and a satellite media tour with
Dr. Steven Lamm.
-- PBS has recorded a segment for its 'The Healing Quest' show. The video link is now on the www.protandim.com homepage;
-- Design and implementation of new packaging for Protandim(R). An artist's drawing of the new package can be seen on the Lifeline corporate website at www.lifelinetherapeutics.com;
-- Signed LeGrand Hart as our PR agency and Karsh + Hagan as our advertising agency; and
-- Engaged Catalyst Financial Resources, LLC to create and disseminate comprehensive quarterly research reports.
"In sum, Lifeline has a great evidence-based product, loyal customers, technical and scientific strength, and a dedicated management team. We remain focused on making the Company successful in all areas."
Protandim(R) is a patent-pending dietary supplement that increases the body's natural antioxidant protection by inducing two protective enzymes, superoxide dismustase (SOD) and catalase (CAT). These naturally occurring enzymes simply become overwhelmed by free radicals as we get older. Oxidative stress (cell damage caused by free radicals) occurs as a person ages, when subjected to environmental stresses or as an associated factor in certain illnesses. TBARS are laboratory markers for oxidative stress in the body. New data from a scientific study in men and women show that after 30 days of taking Protandim(R), the level of circulating TBARS decreased an average of 40 percent, with this decrease shown to be maintained at 120 days. Protandim(R) strengthens a person's defenses against oxidative stress by increasing the body's natural antioxidant enzymes. For more information, please visit the Protandim(R) product web site at www.protandim.com.
About Lifeline Therapeutics, Inc.
Lifeline Therapeutics, Inc. markets Protandim(R). Lifeline Therapeutics is committed to helping people achieve health and wellness for life. For more information, please visit the Company's web site at www.lifelinetherapeutics.com.
Except for historical information contained herein, this document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable common law. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Further, the Company operates in industries where securities values may be volatile and may be influenced by regulatory and other factors beyond the Company's control. Other important factors that the Company believes might cause such differences include the Company's limited cash flow and the rapid development of technology, lack of liquidity for the Company's common stock, working capital shortages, the length of time for scientific advances to reach the market (if they ever reach the market), among other risks. In assessing forward-looking statements contained herein, readers are urged to carefully read all cautionary statements contained in the Company's filings with the Securities and Exchange Commission.