Natrol Reports Losses for 2Q02

Natrol Reports Losses for 2Q02

CHATSWORTH, Calif.--For Natrol Inc.'s (NASDAQ:NTOL)second quarter (2Q02), ended June 30 and reported Aug. 1, sales were down butoptimism was up as the company plans to launch new products and invest in strongcore brands.

Net sales were down 7.4 percent to $17.8 million from $19.3million. Gross margin drooped to 39.8 percent of sales from 41.6 percent, andexpenses rose to $6.9 million from $6.2 million logged in the same period lastyear. Earnings dropped to $36,000, or no change in share, from $920,000, or $.07per share earned.

Despite the downward profit margins, the company remainsoptimistic about future growth, especially since cash flow has remained strong,allowing Natrol to build cash balances from $5.5 million at fiscal 2001's end to$11.2 million at the end of 2Q02. "This reserve gives us substantialstrength in facing the challenges ahead," said Elliott Balbert, presidentand chairman. "Our Prolab division will launch a new meal replacementproduct, which is core to the sports nutrition arena. We are also investing inproducts that are showing positive strength in a negative marketplace, such asComplete Balance and Ester-C."

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