SAN DIEGO, Aug 16, 2005 (BUSINESS WIRE) -- Imagenetix, Inc. (IAGX), www.imagenetix.net, a company focused on inflammation-related markets, announces the results for the first fiscal quarter ended June 30, 2005.
For the first fiscal quarter ended June 30, 2005, the company reported revenue of $2,869,745, a 142% increase compared to $1,186,163 reported in the same quarter of the prior fiscal year.
For the first quarter, the company reported income before taxes of $538,311 compared to income before taxes of $196,454, a 174% increase for the same period last year. For the first fiscal quarter, the company reported net income of $304,011 compared to $290,029 for the same quarter of the prior fiscal year. For the first fiscal quarter ended June 30, 2005, income taxes amounted to $234,300 compared to a credit of $93,575 for the same period last year, resulting in a $327,875 increase in income tax expense compared to the same quarter last year.
Bill Spencer, President of Imagenetix, said: "With record volume and ten consecutive quarters of operating profits, business is trending very positively for the company. During the first quarter, we had a healthy increase in sales as a result of the continued acceptance of Celadrin(R) oral for joint function and mobility, and Celadrin(R) topical for aches and pains, into the mass market, a process that began in November 2004. During its first eight months of introduction to the mass market, Celadrin(R) has now expanded to over 20,000 stores across the country, with the number of stores and Celadrin(R) products per store increasing on a consistent basis. Also, during the first quarter, Celadrin(R) began to be successfully marketed with glucosamine, a popular nutritional compound in the area of joint health. Consumer acceptance of a Celadrin(R)-Glucosamine product (Glucosadrin(TM)) represents a substantial growth opportunity for the Celadrin(R) brand."
"As sales are increasing, we are very focused on investing in the company and controlling which expense categories will increase," continued Mr. Spencer. "Increased expenses for the first fiscal quarter reflected our cooperative investment in a media campaign associated with branding Celadrin(R). During the quarter, we also invested significantly in clinical studies, and we incurred increased expenses in consulting, insurance, accounting, and taxes, as well as a non-cash expense in the issuance of warrants. We believe our investments in the advancement of science combined with our intellectual property endeavors in the area of pharmaceutical compounds, as well as our investments in creating brands, will result in substantial value to our shareholders in both the near future as well as the long-term."
San Diego-based Imagenetix, Inc. (IAGX), www.imagenetix.net, is focused on inflammation. With its patent-pending compound, Imagenetix is focused on developing pharmaceuticals for inflammatory diseases. With its natural-based, proprietary products, the Company is focused on inflammation-related markets. Imagenetix develops, formulates, private-labels, and produces nutritional supplements, over-the-counter topical creams, and skin care products to address these markets. Mass market sales that address a $22 billion market segment, musculo-skeletal movement, have commenced for two of Imagenetix's proprietary products: Celadrin(R) oral for joint function and mobility, and Celadrin(R) topical for aches and pains.
Safe Harbor Statement
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, the size and timing of customer contracts, new or increased competition, changes in market demand, and seasonality of purchases of the company's products and services. These factors and others could cause operating results to vary significantly from those in prior periods and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company expects to file with the Securities Exchange Commission.