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After tax income for the second quarter increased to $199,000, $.02 pershare, from the loss of ($631,000), ($.06) per share, during the same quarterof the prior fiscal year. For the six month period after tax income increasedto $786,000, $.07 per share, compared to the loss of ($1,066,000), ($.10) pershare, in the previous six month period. First quarter results included aone-time litigation settlement.
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Commenting on the results for the quarter, Mr. William P. Spencer,Imagenetix's Chief Executive Officer said, "We have begun making progress inselling our Inflame Away-Celadrin(R) joint health formulas through mass marketstores. We have advanced Celadrin through an in-store warehouse club test.Also, we have added distribution of Inflame Away-Celadrin through the #1national supermarket retail chain this past quarter. With greater expansionand success in the supermarket and warehouse club segments of the mass market,our company would continue to see both increased revenues and improved grossprofit margins which would translate into enhanced bottom line performance."
Imagenetix, based in San Diego, California, is an innovator ofscientifically tested, natural-based, proprietary, bioceutical productsdeveloped to enhance human health on a global basis. Imagenetix develops andformulates propriety over-the-counter topical creams, skincare products andnutritional supplements to be marketed globally through multiple channels ofdistribution. In addition, the company develops patentable compounds forentering into licensing agreements with pharmaceutical partners. Imagenetixis the creator of Inflame Away(R)-Celadrin(R), please visit,http://www.celadrin.com or http://www.imagenetix.net.
Certain matters in this news release are forward-looking statements whichare subject to risks and uncertainties that could cause actual results to varymaterially from those projected. Such risks and uncertainties include, butare not limited to, adverse fluctuations in future operating results due to anumber of economic, competitive, and other factors, including, among otherthings, the size and timing of customer contracts, new or increasedcompetition, changes in market demand, and seasonality of purchases of thecompany's products and services. Additional information with respect to theseand other factors, which could materially affect the company and itsoperations, are included in the company's SEC filings, including its Form 10-Kfor the year ended March 31, 2008.Contact Imagenetix Investor Relations William P. Spencer (858) 674-8466 Chief Executive Officer Imagenetix, Inc. Tel: (858) 674-8455 Imagenetix, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended September 30, September 30, 2008 2007 2008 2007 Net sales $2,656 $1,829 $4,051 $2,956 Cost of sales 1,541 1,083 2,361 1,620 Gross profit 1,115 746 1,690 1,336 Gross profit percent 42.0% 40.8% 41.7% 45.2% Operating expenses: General and administrative 420 687 1,025 1,334 Payroll expense 221 216 593 572 Consulting expense 243 228 589 479 Operating expenses 884 1,131 2,207 2,385 Operating income (loss) 231 (385) (517) (1,049) Other income 10 15 17 22 Settlement income - - 1,785 - Interest expense - (1) (1) (3) Income (loss) before income taxes 241 (371) 1,284 (1,030) Income tax expense 42 260 498 36 Net income (loss) $199 $(631) $786 $(1,066) Income (loss) per share: Basic $0.02 $(0.06) $0.07 $(0.10) Diluted $0.02 $(0.06) $0.07 $(0.10) Weighted average common shares outstanding: Basic 10,984 10,953 10,972 10,913 Diluted 11,012 10,953 11,007 10,913 Imagenetix, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) September 30, March 31, 2008 2008 Assets: Current assets: Cash and cash equivalents $2,109 $1,023 Accounts receivable, net 1,126 766 Inventories, net 1,566 1,110 Prepaid expenses and other current assets 191 252 Deferred tax asset 333 862 Total current assets 5,325 4,013 Property and equipment, net 132 112 Long-term prepaid expenses 36 42 Other assets 244 218 Total assets $5,737 $4,385 Liabilities and stockholders' equity: Current liabilities: Accounts payable $1,183 $714 Accrued liabilities 82 72 Customer deposits 70 63 Contract payable - 46 Short term license payable 20 34 Total current liabilities 1,355 929 Long term license payable - 3 Stockholders' equity 4,382 3,453 Total liabilities and stockholders' equity $5,737 $4,385
SOURCE Imagenetix, Inc.
