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Net sales of $20.4 million in the second quarter of fiscal 2008 declined$3.7 million as compared to $24.1 million for the same quarter last year. Thedecrease included a $2.8 million decline in private label contractmanufacturing sales associated primarily with one of our largest customers anda $900,000 decrease in our branded product business related primarily to thecontinued softening of our Dr. Cherry Pathway to Healing(R) product line.
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For the second quarter of fiscal 2008 we reported a net loss of $180,000,or $0.03 per share, on 7.0 million weighted-average shares outstanding. Forthe second quarter of fiscal 2007 we reported net income of $554,000, or $0.08per diluted share, on 7.2 million weighted-average shares outstanding.
Cash flows provided by operating activities for the six months endedDecember 31, 2007 were $2.0 million. As of December 31, 2007, NAI had cash andworking capital of $5.0 million and $16.8 million, respectively, compared to$4.9 million and $16.2 million, respectively, as of June 30, 2007. As ofDecember 31, 2007, we had $7.5 million available under our working capitalline of credit.
President Randell Weaver commented, "As we previously anticipated, oursecond quarter sales and profits were significantly impacted by the reductionin volume from one of our largest private label customers. Looking forward,during the second half of fiscal 2008 we anticipate sales to this customerwill trend towards sales levels experienced during the comparable period offiscal 2007. Additionally, we have established relationships with two newcustomers and anticipate initial shipments of these products during late thirdor early fourth quarter of this year. We also expect our branded product salesto improve over our second quarter results as we enter our stronger catalogseason during the third and fourth quarters."
NAI, headquartered in San Marcos, California, is a leading formulator,manufacturer and marketer of nutritional supplements and provides strategicpartnering services to its customers. Our comprehensive partnership approachoffers a wide range of innovative nutritional products and services to ourclients including: scientific research, clinical studies, proprietaryingredients, customer-specific nutritional product formulation, producttesting and evaluation, marketing management and support, packaging anddelivery system design, regulatory review and international productregistration assistance. For more information about NAI, please see ourwebsite at http://www.nai-online.com.
This press release contains forward-looking statements within the meaningof Section 21E of the Securities Exchange Act of 1934 that are not historicalfacts and information. These statements represent our intentions,expectations and beliefs concerning future events, including, among otherthings, our expectations and beliefs with respect to future financial andoperating results, including the amount of our future net sales and profits,our ability to develop, maintain or increase sales to new and existingcustomers and within our branded products business, and the timing ofshipments to new customers. We wish to caution readers these statementsinvolve risks and uncertainties that could cause actual results and outcomesfor future periods to differ materially from any forward-looking statement orviews expressed herein. NAI's financial performance and the forward-lookingstatements contained herein are further qualified by other risks includingthose set forth from time to time in the documents filed by us with theSecurities and Exchange Commis
