Natural Alternatives International Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, announced net income of $697,000 or $0.10 per diluted share on net sales of $16.5 million for the quarter ended September 30, 2012.
Net sales during the three months ended September 30, 2012, decreased $1.8 million or 10.3 percent from $18.3 million recorded in the comparable prior year period. For the quarter ended September 30, 2012, private label contract manufacturing sales decreased $1.9 million or 11.2 percent from the comparable quarter last year due primarily to lower sales to our two largest customers and unfavorable foreign currency exchange rates which generated lower average sales prices during the current year period. Patent and trademark licensing revenue increased to $1.4 million or 3.0 percent during the first quarter of fiscal 2013 as compared to $1.3 million for the comparable prior year period. Our branded products sales totaled $342,000 for the first quarter of fiscal 2013 as compared to $401,000 for the comparable prior year period.
Our revenue concentration risk for our two largest customers decreased to 72 percent as a percentage of our total private label contract manufacturing sales for the first three months of fiscal 2013 compared to 77 percent in the first three months of fiscal 2012.
Net income in the first quarter of fiscal 2013 was $697,000 or $0.10 per diluted share compared to net income of $1.5 million or $0.22 per diluted share in the first quarter of fiscal 2012. The decrease was primarily attributable to lower consolidated sales, increased manufacturing costs associated with lower units of production and increased legal expenses related to our beta-alanine patent estate.
As of September 30, 2012, NAI had cash of $14.4 million and working capital of $28.6 million compared to $14.5 million and $27.7 million, respectively, as of June 30, 2012. As of September 30, 2012, we had $5.5 million available under our line of credit agreements.
Mark A. Le Doux, chairman and CEO, noted, "NAI continues to demonstrate leadership in dietary supplement research, intellectual property, and manufacturing of supplements. Recently the United States Patent Office has provided a notice of allowance for one of our latest patent applications in the field of timed-release beta-alanine. Timed-released beta-alanine is now available from Natural Alternatives International in the form of SR CarnoSyn® 800 milligram tablets. With research demonstrating the added value of this dosage form, we are actively promoting this remarkable product in various channels of commerce. In addition to this new patent allowance in the U.S., we have secured similar responses from patent agencies in Canada and South Korea. In addition, we have additional patent applications pending globally. While NAI experienced a reduction in contract manufacturing requirements from its clients in this quarter, we are seeing signs of additional opportunities on the horizon and are planning to generate additional revenues while expanding our client base globally."