MATAWAN, N.J., May 16, 2005 (BUSINESS WIRE) -- PacificHealth Laboratories, Inc. (PHLI), an innovative nutrition technology company, reported today $997,661 in revenues for the quarter ended March 31, 2005 compared to revenues of $2,303,597 for the same period in 2004. The company recorded a net loss of ($721,346), or ($0.07 per share) for the three-months ended March 31, 2005 compared to a net income of $7,777 or $0.00 per share, for the three-month period ended March 31, 2004.
During the 2005 first quarter, the Company signed a new purchasing agreement with an existing retail customer that increased certain sell-through minimum commitments. Consequently, the company will recognize revenue upon this customer's sell-through. Approximately $716,000 in shipments to this customer was thus deferred in the current quarter. Additionally, the first quarter of 2004 included $750,000 in revenues from the Company's Nutrient Timing System suite of products to a customer under a program that was discontinued by the customer in the first quarter of 2005.
During the first quarter of 2005, Hormel Health Labs, LLC, a subsidiary of Diamond Crystal Sales, LLC, made a $1,000,000 equity investment in the Company. The investment was in the form of preferred convertible stock with a conversion price into common stock of $1.10 per share, and carries a 2% coupon, payable in either cash or stock at the Company's option.
About the Company:
PacificHealth Laboratories, Inc., Matawan, NJ, was founded in 1995 to develop and commercialize functionally unique nutritional products for sports nutrition, weight loss and Type 2 diabetes. To learn more about PacificHealth Laboratories, Inc., visit: www.pacifichealthlabs.com.
Notice: This news release and oral statements made from time to time by Company representatives concerning the same subject matter may contain so-called "forward-looking statements". These statements can be identified by introductory words such as "expects", "plans", "will", "estimates", "forecasts", "projects" or words of similar meaning and by the fact they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing new products and their potential. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known, such general economic conditions, consumer product acceptance and competitive products, and others of which are not. No forward-looking statements are a guarantee of future results or events, and one should avoid placing undue reliance on such statements.