Bionutrics Charts 1Q Plunge and Repositioning

Bionutrics Charts 1Q Plunge and Repositioning

PHOENIX--Bionutrics Inc.(OTCBB:BNRX) reported a huge decline in revenues and extended loss for its first quarter ended Jan. 31. Revenues plummeted to $8,488 from $.15 million sold in the comparable quarter a year ago. Gross margin was 22 percent, well below 88 percent grossed a year ago, while operating expenses remained a lofty $.61 million, up from $.57 million spent in the same quarter last year. Net income plunged to $.70 million or $.03 per share, a bit worse than $.52 million or $.02 per share lost a year ago.
Management reported that the company continues to experience a vast decline in sales due to curtailed advertising and product support for its Evolve brand, because of financial constraints. As a result, many of its accounts have returned product due to low sales volume. The company now plans to reposition itself as a product development company, hoping to farm out the marketing of its existing brand and any new products. Beyond sales, the increase in operating expenses was the result of higher legal and accounting costs, according to the company. Also, BNRX accounted for a $98,000 loss in its investment in InCon Processing in the quarter results using the equity method, recording its share loss for the quarter as a reduction in its InCon investment.