Chromium supplement maker Nutrition 21 last week reported a net loss of $1.1 million on revenues of $3.1 million for the third quarter, compared with a loss of $0.2 million on revenues of $4.0 million for the same period a year ago.
Revenues for the nine months to end of March were also down, from $10.8 million last year to $8.8 million, along with a net loss of $3.5 million compared to income of $0.7 million for last year's first nine months. Included in the nine month period last year was a one-time pre-tax gain of $1.8 million, from the settlement of patent infringement lawsuits and a sale of assets.
Gail Montgomery, president and CEO of the company, attributed the lower sales in the quarter and year to date to the soft sales of Lite Bites products due to lack of air time on QVC during the winter months and less than expected sales after a newly revamped product line returned to the air in late February. "To protect ourselves against any further losses associated with the Lite Bites product line, we are continuing our search for an appropriate partner(s) to expand distribution of these products in new channels."
She also said the company would continue to invest in promoting the health benefits associated with chromium picolinate in therapeutic consumer brands, which is supported by the ingredients business.
Nutrition 21 sponsored The Council for Advancement of Diabetes Research and Education (CADRE) Research Summit held in early April and "an important company milestone." The summit saw leading researchers discuss the role of chromium in improving insulin resistance and epidemiological research suggesting a strong correlation between chromium deficiency and chronic disease.
Studies scheduled for publication at the end of 2003 is expected to increase demand for the company's proprietary products, although recent news from the UK, which may see a ban on chromium picolinate in the market and has potential to inform European law too, is unlikely to help the company's European business.
There will also be expenses associated with the expected 2004 launch of Nutrition 21's Diachrome and Zeramax supplement brands into diabetes and depression therapeutic markets. The company did however end the quarter in a strong financial position with $4.8 million in cash and net working capital of $6.1 million.