Targeted Strategies for Today's Evolving Markets

MissionIR Blog

Nutrition 21 Shares Drop 12% on News of Widened Loss

Shares of Nutrition 21 (Nasdaq: NXXI) plummeted 17 cents – nearly 12 percent – to $1.29 Monday morning, moving on a volume of 569,988. The dietary supplements maker today announced that preliminary results show a wider loss for fiscal 2007 due in part to a significant one-time charge related to its Selenomax product.

Nutrition 21 estimates a loss for the fiscal year ended June 30 to be $18.2 million, or 32 cents per share, as compared to a loss of $10.3 million, or 26 cents per share, for 2006. The loss includes a $1.4 million charge for the return of its selenium yeast supplement, Selenomax.

Nutrition 21 said the net loss is a reflection of investments made to assist the company in its transition from a research and development company to a sales and marketing-driven company. Nutrition 21 now focuses on selling branded consumer products to address growing age and weight-related health needs such as diabetes, obesity, joint health and mental health.

During its transition the company expanded its sales team, conducted pre-market activities to launch several of its products, expanded its direct response operations by adding new call centers, and completed its research and development its cognitive function products.

“In this past year we made significant progress towards our goal of becoming a leading nutritional supplements company with premium branded products,” Paul Intlekofer, Nutrition 21’s president and CEO, said in a statement. “We now have a diverse portfolio of best-in-class products, extensive marketing capabilities, strong relationships with our retail distributors and an experienced staff. Excluding the one-time sale and return of Selenomax, we have grown sales in each of the last four quarters. The investments we made during this past year have enabled us to build our brands and have positioned us to be able to generate sustainable growth over the next few years.”

Additionally, the company said its full-year revenue is expected to more than triple, with estimates of $42.2 million, up from $10.7 million in 2006. Giving further guidance, in a press release, the company said it expects fiscal 2008 revenue to range between $70 million and $80 million – a 64 percent to 94 percent increase from 2007 estimates.

The company intends to announce its final audited results during the second week of September.

Please share your thoughts: MN1 Message Board

This entry was posted in Small Cap News. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *