Natural Alternatives International Inc., a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $1.1 million or $0.15 per diluted share on net sales of $17.4 million for the quarter ended March 31, 2012. These results included a full effective tax rate in the third quarter of fiscal 2012 as compared to a lower rate in the prior year period.
Net sales for the three months ended March 31, 2012 increased $4.0 million or 30.3 percent from $13.4 million recorded in the comparable prior year period. For the quarter ended March 31, 2012, contract manufacturing sales increased $2.7 million or 22.2 percent from the comparable quarter last year due primarily to higher sales to existing customers. Patent and trademark licensing revenue increased 190.6 percent to $2.1 million during the quarter ended March 31, 2012 as compared to $720,000 for the prior year period. This licensing revenue was generated from our patent estate pursuant to license and supply agreements with third parties for the use and distribution of the ingredient known as beta-alanine sold under our CarnoSyn trade name. These increases were partially offset by a decline in our branded products sales, which totaled $387,000 for the third quarter of fiscal 2012 as compared to $431,000 for the comparable prior year period.
Net sales for the nine months ended March 31, 2012 increased to $51.9 million or 25.2 percent from $41.5 million recorded in the comparable prior year period. Contract manufacturing sales during the first nine months of fiscal 2012 increased $7.8 million or 20.2 percent from the comparable prior year period and patent and trademark licensing revenue increased 210.3 percent or $2.8 million during this same period. These increases were partially offset by a decline in our branded products sales, which totaled $1.2 million for the first nine months of fiscal 2012 as compared to $1.4 million for the comparable prior year period.
Net income for the first nine months of fiscal 2012 totaled $3.4 million or $0.48 per diluted share compared to net income of $1.9 million or $0.27 per diluted share in the comparable prior year period. The increase was primarily attributable to increased contract manufacturing sales and patent and trademark licensing revenue partially offset by increased income tax expense. The company's effective rate for the nine month period ended March 31, 2012 was 35.5 percent as compared to 15.4 percent in the comparable prior year period. The increase in the current year effective tax rate is a result of the full utilization of our federal net operating loss carry-forward deduction during the first quarter of fiscal 2012.
As of March 31, 2012, we had cash of $11.1 million and working capital of $27.0 million compared to $15.5 million and $22.9 million, respectively, as of June 30, 2011. As of March 31, 2012, we had $5.6 million available under our line of credit agreements.
Mark A. LeDoux, Chairman and Chief Executive Officer indicated, "We are gratified with the continued positive performance of the corporation. This quarter marked the thirteenth consecutive quarter of positive operational earnings, and our performance in a full tax environment in this fiscal year has been strong on a year over year comparison. I believe it remains clear that as more and more regulatory actions and warning letters are being initiated by the Federal Food and Drug Administration against companies not compliant with the basic tenets of the federal laws governing manufacturing of dietary supplements, NAI is in an enviable position to expand its domestic and international client relationships. Companies who have a high degree of respect for their brand value and equity are seeking supply partners who have an unswerving commitment to ethical business practices and uncompromising quality processes. We believe we remain poised to fill this essential role for strategic partners that wish to sleep well at night.
With the world turning its attention on the spectacle of the London Summer Olympic Games, our CarnoSyn patented beta-alanine should receive ever more positive attention by the media and the research community. We received yet another patent on the use of beta-alanine on March 6, 2012 and continue to receive positive feedback from around the globe."