Natrol Reports Fewer Sales for 1Q02

Natrol Reports Fewer Sales for 1Q02

CHATSWORTH, Calif.--Natrol Inc. (NASDAQ:NTOL)reported May 8 decreased sales for the company's first quarter (1Q02), endedMarch 31, due to private label competitors and diminished shelf space.

Revenue for the quarter was down 8 percent to $17.5 million from$19.1 million. Gross margin dipped to 37.5 percent of sales from 40.8 percentlogged in the same period last year, while expenses were reigned in slightly to$6.4 million. Net income for the quarter took a slide to $27,000, or nothingearned per share, from $657,000, or $.05 per share earned, in 1Q01.

"We are continuing to see softness in our major channels ofdistribution," said Elliott Balbert, president and chief executive officer."Vitamin and supplement sales have not fully rebounded. Competition fromprivate label is intense, leading to pressure on margins. Retailers arecontinuing to realign shelf space and are, in many cases, reducing shelf spacedevoted to the sector."

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