Baywood Returns to Profitability for First Time Since '98Restructuring

Baywood Returns to Profitability for First Time Since '98Restructuring

SCOTTSDALE, Ariz.--For the second quarter (2Q02)ended June 30 and reported Aug. 13, Baywood International Inc.'s (OTCBB:BYWD)revenue increased due to a strong sales staff, new products and a largerdistribution base.

Sales shot up 48.5 percent to $1.0 million from $689,000 loggedin the same quarter last year. Gross margin slipped slightly to 43.4 percent ofsales, and expenses rose to $404,000. Net income came in at $34,000, animprovement over the previous year's net loss of $98,000.

The company reported that its increased revenue was due tocontinued growth in sales volume from brands such as Solutions, Evolutionand Purechoice, in addition to expanding its distribution base. New productsand flavors, as well as a boost in sales from the company's exclusive marketerand distributor for Asia, Healthy International Ltd., added to Baywood's highersales.

"This second quarter marks an important milestone forBaywood at this point in our evolution," said Neil Reithinger, chairman,president and chief executive officer. "It is the first quarter ofprofitability since the company's restructuring in 1998." He added thatmuch of the company's current success is due to assembling a sales staff with alarge amount of natural products experience. "These sales professionalshave done a great job of influencing our retail partners to join our efforts tomake our brands successful in the nutraceutical arena," he said.

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