Advanced Nutraceuticals Charts 2Q Sales Dip, Completes NFLI Sale

Advanced Nutraceuticals Charts 2Q Sales Dip, Completes NFLI Sale

HOUSTON--Advanced Nutraceuticals Inc. (NASDAQ:ANII) reporteddeclined net sales and a slightly worsened net loss for its second quarter endedMarch 31. Revenues fell to $16.2 million from $18.4 million sold a year ago,while gross margin rose by less than one point. Operating expenses heldrelatively flat as a percentage of sales, but net loss widened slightly to$424,000 or $.05 per share from $418,000 or $.05 per share lost in the sameperiod last year.

The company recently closed the sale of Nutrition for Life Inc. (NFLI), itsnetwork marketing unit, in June 2001 for $3.2 million in cash and a $5 millionnote payable by NFLI to Everest Group, a unit of privately held networkmarketing company Everest International. NFLI also signed a product supplyagreement with Advanced Nutraceuticals' Bactolac Pharmaceuticals division andprovided the division with a $.65 million note due in June 2002. ANII intends touse most of the cash to reduce debt but will set aside a portion for workingcapital. The company reported that the sale of NFLI will allow it to focus onacquiring nutraceutical and pharmaceutical companies.