Lifeway Posts 1Q Results, Joins NASDAQ NMS

Lifeway Posts 1Q Results, Joins NASDAQ NMS

MORTON GROVE, Ill.--Lifeway Foods Inc. (NASDAQ:LWAY) reported increased revenues and gross profit for its first quarter ended March 31, and it announced that the company has joined the NASDAQ National Marketing System (NMS), effective May 24, 2000. Revenues were up 23 percent to $2.3 million, while gross profits rose 17 percent to $1.1 million or 50 percent of sales. Earnings, however, fell 10 percent to $.2 million or $.04 per share, as operating expenses climbed 8 points as a percentage of sales.

"During the first quarter, we took significant steps to broaden our market share, spending $191,000 on advertising and marketing, which is a 56-percent increase over the amount spent on advertising and marketing in the first quarter of 1999," said Michael Smolyansky, president and chief executive officer. He further stated that the company intends to boost fiscal year revenues by 25 percent or better on the strength of expanding market share and the production capacity increases resulting from the company's new processing plant.

In addition to the quarter results, Lifeway reported that its performance in NASDAQ's small cap market, along with the company's financial strength and aggressive growth in healthy foods markets, had enabled the company to move to the NMS.