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The Company reported a 43% increase in total revenues to $13.0 millioncompared to $9.1 million in the comparable quarter a year ago. For thequarter, the Company's operating loss of $2.8 million represents a$1.6 million improvement over the year-ago period. Financial results for thequarter were impacted by a $2.4 million increase in advertising and promotionto support the launch of new products and a $0.7 million increase in netinterest expense. Net loss for the quarter was $3.8 million, or $(0.06) perfully diluted share, compared to the net loss of $4.7 million, or $(0.08) perfully diluted share in the second quarter of fiscal year 2007.
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Total revenues for the six months ended December 31, 2007 increased 83% to$25.2 million compared to $13.8 million in the same period a year ago. TheCompany's six-month operating loss was $6.5 million which is a $1.5 millionimprovement over the prior year. Net loss for the six months ended December31, 2007 was $7.9 million, or $(0.13) per fully diluted share, compared to$8.8 million, or $(0.16) per fully diluted share, in the comparable period ayear ago.
Paul Intlekofer, president and chief executive officer of Nutrition 21,Inc., said, "We are pleased with the progress that was achieved during thequarter in terms of growing revenues strongly while meaningfully reducing ouroperating loss. Going forward, we look to make consistent progress on top-linerevenues, while we place continued emphasis on achieving profitability in anoptimal timeframe."
"We are particularly pleased that during the quarter our Core4Life(TM)Advanced Memory Formula(TM) product is the fastest growing product in itssegment at one of the nation's leading drugstore chains. In January weincreased our distribution of Advanced Memory Formula by an additional6,500 retail store locations, bringing the total number of retail storeslocations to 20,500. As the median age of the U.S. population continues toincrease, our focus group studies with middle-aged participants indicate thatthere is a strong desire to maintain the highest level of cognitive functionand memory. Our Core4Life Advanced Memory Formula is aimed directly at thislarge and growing market and has been effective in clinical studies.
"Additionally, our new Diabetes Essentials brand continues to grow asawareness of the product line and its benefits begin to take hold. We are alsoworking to develop an additional distribution channel for this product line inorder to embed these products within the diabetes community nationwide. Webelieve that the Diabetes Essentials suite of products offers those sufferingwith diabetes a unique and pleasant approach to managing their nutritionalrequirements and improving the quality of their lives on an on-going basis."
Mr. Intlekofer concluded, "We continue to be pleased with the retailacceptance of the Iceland Health products. We also look forward to having ourIceland Health Joint Relief and Iceland Health Omega-3 products featured indisplays and/or end-caps at a major national drugstore retailer in the monthof March and at another large national drugstore retail chain in the month ofApril. In January, we increased our distribution channel for Iceland HealthJoint Relief products by an additional 7,000 retail store locations, bringingto 23,000 stores offering the product. As focus group studies indicate,maintaining healthy and functional joints is a major concern, particularlywithin the "Baby Boom" generation, in order to remain
