Mannatech Down in 2Q10

COPPELL, TexasMannatech Inc. (NASDAQ: MTEX) reported a net loss for its second quarter (2Q10), ended June 30; the net loss of $3.8 million was a positive step from $5.5 million lost in the comparable 2009 period. Similarly, Mannatechs operating loss of $2.1 million for 2Q10 moved in the right direction from the $11.1 million loss for 2Q09. However, the $57.6 million in net sales for 2Q10 was down 25.8 percent from the $77.6 million reported for 2Q09; driving the downward trend was a decline of 32 percent in North American sales for 2Q10 compared to the comparable period in 2009. Mannatech noted sales were considerably higher in 2Q09 because of the launch of a lower price pack promotion, yet accompanied by higher commission costs.

We continue to manage our cost of sales, commission costs and operating expenses at efficient levels," said Stephen Fenstermacher, co-CEO and chief financial officer. Our balance sheet reflects higher cash and cash equivalents compared to year-end 2009, lower outstanding payables and we continue to have essentially no long-term debt. In addition, we have increased operating profit from our international operations. We also remain on track for our launch of operations in Mexico in the first quarter of 2011."