Business
Natural Alternatives International, Inc. Announces 2020 Q1 Results
CARLSBAD, Calif., Nov. 14, 2019 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and
About this update from Natural Alternatives International, Inc.
[{"type":"text","content":" CARLSBAD, Calif., Nov. 14, 2019 /PRNewswire/ -- Natural Alternatives International, Inc. (\"NAI\") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $96,000, or $0.01 per diluted share, on net sales of $29.2 million for the quarter ended September 30, 2019. \nNet sales during the three months ended September 30, 2019 decreased $7.3 million, or 20.1%, from $36.5 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased $5.1 million, or 16.3%, from the comparable quarter last year. Sales to our largest private-label contract manufacturing customer declined over 33%, while sales to all other private-label contract manufacturing customers increased more than 23%, including sales of new products to new and existing customers. \nCarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 41.5% to $3.2 million during the first quarter of fiscal 2020, as compared to $5.4 million for the first quarter of fiscal 2019. We believe this decline was impacted by certain of our customers discontinuing the use of our CarnoSyn® beta-alanine in favor of generic beta-alanine and lower overall consumer demand for our customers' CarnoSyn® products. We expect the recent ruling from the U.S. Court of Appeals for the Federal Circuit in favor of NAI's CarnoSyn® beta-alanine patents, along with our CarnoSyn® beta-alanine New Dietary Ingredient (NDI) status from the FDA, will help motivate buyers to purchase CarnoSyn® in the future. Additionally, we will continue to vigorously pursue all legal avenues to protect our CarnoSyn® brand, intellectual property portfolio, and regulatory compliance status, we have already brought some legal actions, and anticipate there will be others.\nWe currently expect annualized fiscal 2020 private-label manufacturing sales to be flat to slightly down as compared to fiscal 2019. This estimate includes expectations of lower sales revenue from our largest private-label contract manufacturing customer. \nAdditionally, we currently expect CarnoSyn® and SR CarnoSyn® beta-alanine revenue growth in the mid-to high single digit percentage range during fiscal year 2020. However, based on our strategy to defend our patents, trademarks, and NDI status for our ...