PHOENIX, Ariz., May 15, 2007 /PRNewswire-FirstCall via COMTEX/ -- NutraCea (OTC Bulletin Board: NTRZ), a leader in stabilized rice bran nutrient research and technology, announced today its financial results for the first quarter period ended March 31, 2007.
Consolidated revenues for the quarter were approximately $2.0 million, a decrease of $1.8 million, or 47% from the same period one year ago. The shortfall in revenues was primarily attributable to $2.6 million of purchase orders for product that we produced for three new customers, for which we did not recognize revenues for reasons including the timing of the acceptance of delivery by the customers and product labels not being completed by the third party co-packer. We anticipate that this revenue will be recognized in the second quarter.
Gross margin in the first quarter was $884,000, or 44%, compared to $1,682,000, or 45% during the first quarter of last year.
For the three months ended March 31, 2007, the Company's net loss was $247,000, or $0.00 per share, compared to a net loss of $233,000, or $0.00 per share, in the same period last year.
The balance sheet continues to remain strong with $61.8 million in cash and no debt.
Brad Edson, NutraCea President and CEO, said, "Despite the revenue shortfall, which should be viewed as a timing issue, we expect the second quarter to reflect the benefits of having our first plant in Louisiana operational, which will also supply the Dillon plant for more value added production capacity. The first quarter timing issue was unfortunate, although not indicative of any shortage of demand for our product. In fact, we are seeing tremendous demand for our products from the large food companies and others that eagerly await the availability of supply of stabilized rice bran from our future plants to satisfy the burgeoning demand."
"Operationally we are on schedule for our production expansion. Our first Louisiana-based plant has been operating at full capacity since April 2007. The second Dillon expansion is near completion, the Arbuckle rice facility is currently scheduled for installation of our proprietary stabilization equipment and should be ready for operation by the summer. Our second Louisiana-based plant is under construction and will be ready for commissioning later this year. On the international front, we continue to conduct high-level discussions with various potential partners and believe the Company is in a strong financial position to advance these discussions into definitive agreements some time this year," added Mr. Leo Gingras, COO of NutraCea.