Refocus Proves Profitable in Nutraceutix 1Q

Refocus Proves Profitable in Nutraceutix 1Q

REDMOND,Wash.--Nutraceutix Inc. (OTC BB:NUTX) reported significant sales and profit gains for itsfirst quarter ended March 31, owing largely to a shift in focus from non-proprietaryproducts to proprietary technologies. Net sales peaked at $2.1 million, up 30 percent from$1.6 million sold in the same period last year. Gross profit also improved, up more thanone point as a percentage of sales. Turning in an even bigger improvement were totaloperating costs, which fell almost 11 points as a percentage of sales. Big improvementswere especially noted in selling and marketing expenses. On the strength of the operatingresults, net loss was cut to $.04 million or $.002 per share from $.32 million or $.019per share lost in the comparable 1999 quarter.

Management reported that sales from proprietary technology rocketed 276 percent to $1.3million from $.36 million sold in the equivalent period last year. Conversely, revenuesfrom private label manufacturing of health supplements plummeted 76 percent in comparingthe same two periods. NUTX noted that a large portion of such sales in the comparable 1999quarter were credited to an interim service provided to Met-Rx, which was not then readyto introduce its own powder fill product to the bodybuilding market. NUTX stated that itdoes not expect to continue its powder fill business in 2000.