Natural Alternatives International, Inc., a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced a net loss of $371,000 or $0.05 per share for fiscal year 2008. These results included income from continuing operations of $912,000 or $0.13 per diluted share offset by a $1.3 million loss from discontinued operations or $0.18 per share. Net sales from continuing operations decreased by $4.8 million or 5.6% from $86.6 million in fiscal 2007 to $81.8 million in fiscal 2008.
For the fourth quarter of fiscal 2008 revenues from continuing operations increased slightly to $21.5 million from $21.4 million in the prior year period. This increase was primarily due to increased private label contract manufacturing sales partially offset by a decrease in our Dr. Cherry Pathway to Healing(R) product line sales. The net loss in the fourth quarter of fiscal 2008 was $168,000 or $0.02 per share compared to a net loss of $6.6 million or $0.96 per share in the prior year. The net loss in fiscal 2007 was primarily attributable to the $7.0 million non-cash goodwill impairment charge related to legacy RHL that was discontinued in the fourth quarter of fiscal 2008.
As of June 30, 2008, NAI had cash and working capital of $3.5 million and $18.1 million, respectively, compared to $4.1 million and $16.2 million, respectively, in the prior year. As of June 30, 2008, we had $7.5 million available under our working capital line of credit.
President Randell Weaver stated, "During the fourth quarter of fiscal 2008 in an effort to enhance stockholder value, improve working capital and enable us to focus on our core contract manufacturing businesses, we elected to narrow our branded products focus and portfolio and developed a plan to sell some of our branded products assets. In addition, we have taken steps to significantly reduce our operating costs. While we expect our continuing operations to be profitable, we also expect to incur losses from discontinued operations in the first quarter of fiscal 2009 which are likely to exceed profits from continuing operations. Going forward, we believe focusing on our core private label contract manufacturing operations will significantly improve our overall profitability and allow us to better pursue our growth initiatives."
CEO Mark LeDoux added, "Our balance sheet remains strong, and we believe the sale of selected assets will further strengthen our balance sheet. Obviously, in today's economic climate, there are significant challenges. Our strong balance sheet and international scope should position us to meet these challenges effectively. We believe the steps we have taken will enable us to effectively capitalize on opportunities as we move forward."
NAI, headquartered in San Marcos, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including: scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance. For more information about NAI, please see our website at http://www.nai-online.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our expectations and beliefs with respect to our future growth and financial and operating results, including the amount of our future revenue and profits and our future financial condition, our ability to implement our strategic plans, to enhance stockholder value, improve working capital and reduce operating costs, to grow our contract manufacturing business, to sell our branded products assets, and to develop, maintain or increase sales to new and existing customers. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI's financial performance and the forward-looking statements contained herein are further qualified by other risks including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.