PURCHASE, N.Y., Feb 14, 2006 (BUSINESS WIRE) -- Nutrition 21, Inc. (NXXI) , the leading developer and marketer of chromium-based nutritional supplements, today reported financial results for the second quarter ended December 31, 2005.
Net sales, which consist primarily of nutritional product sales, were $2.0 million in the second quarter of fiscal 2006, as compared to $2.6 million for the same period last year. Other revenues for the second quarter were $0.1 million, compared to $1.0 million for the same period a year ago. A $1.0 million non-refundable payment which the Company received last year did not recur in the current period. Total revenues for the second quarter were $2.1 million compared to $3.6 million for the same period last year. Net loss for the quarter was $3.1 million, or ($0.08) per diluted share, compared to a net loss of $0.3 million, or ($0.01) per diluted share, in the second quarter of fiscal 2005.
Net sales for the six months ended December 31, 2005 were $5.5 million, compared to $5.3 million for the same period last year. Other revenues for the six months ended December 31, 2005, were $0.2 million compared to $1.1 million in the same period a year ago. A $1.0 million non-refundable payment which the Company received last year did not recur in the current period. Total revenues for the six months ended December 31, 2005 were $5.7 million, compared to $6.4 million for the same period last year. Net loss for fiscal 2006 was $4.2 million, or ($0.11) per diluted share, compared to a net loss of $1.5 million, or ($0.04) per diluted share, for the same period in the prior year.
Paul Intlekofer, COO and CFO of Nutrition 21, said "The net loss for the quarter reflects recent management changes and the continuing shift of our resources to support the sale of our proprietary Chromax(R) and Diachrome(R) branded products directly to retailers. Our major clinical investments for Chromax and Diachrome have impressed healthcare professionals and retailers. Our initial efforts in this direction have been validated by a commitment we have received from Rite Aid."
"Increasing public awareness of the importance of chromium picolinate to insulin health has also been of great value to us. The company's chromium-based products address significant markets stemming from insulin health, including obesity, diabetes, heart health and depression," added Intlekofer.
"We are complementing our direct retail distribution with continuing attention to our ingredient business for immediate cash generation and with continuing work on our patented compounds and uses. We think that the distribution channels with retailers and the relationships that we are developing with health related professionals will position us well for these potential product extensions," concluded Intlekofer.
About Nutrition 21
Nutrition 21 is a nutritional bioscience company and the maker of chromium-based supplements with health benefits substantiated by clinical research. The company markets Chromax(R) chromium picolinate, http://www.chromax.com/, which is the most-studied form of the essential mineral chromium. Nutrition 21 also developed Diachrome(R), http://www.diachrome.com/ . Nutrition 21 holds 36 patents for nutrition products and uses, 27 of which are for chromium compounds and their uses. More information is available at www.nutrition21.com.
Safe Harbor Provision
This press release may contain certain forward-looking statements. The words "believe," "expect," "anticipate" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on the Company's current expectations and are subject to a number of risks and uncertainties, including without limitation: the effect of the expiration of patents; regulatory issues; uncertainty in the outcomes of clinical trials; changes in external market factors; changes in the Company's business or growth strategy or an inability to execute its strategy due to changes in its industry or the economy generally; the emergence of new or growing competitors; various other competitive factors; and other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended June 30, 2005 and subsequent reports on Form 10-Q. Actual results could differ materially from the results referred to in the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements contained in this press release will in fact occur. Additionally, the Company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements.