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Matrixx Initiatives, Inc. Reports Fiscal 3rd Quarter Net Sales of $30.8 Million and Net Loss of ($0.07) Per Share
Date:1/30/2008

9-Year Low in Seasonal Illness affects sales of Cough and Cold Products

PHOENIX, Jan. 30 /PRNewswire-FirstCall/ -- Matrixx Initiatives, Inc. (Nasdaq: MTXX), an over-the-counter healthcare company that develops and markets products that provide consumers with "Better Ways to Get Better(R)," today announced financial results for its fiscal 2008 third quarter and nine months ended December 31, 2007. Third quarter revenue declined to approximately $30.8 million compared to $36.2 million for the comparable quarter in the prior year. The Company reported a net loss for the quarter of ($635,000), or ($0.07) per diluted share, compared to a net loss of ($463,000), or ($0.05) per diluted share, for the quarter ended December 31, 2006.

For the nine months ended December 31, 2007, the Company reported net sales of $68.0 million, compared to net sales of $78.6 million for the comparable nine months of the prior year. For the nine months ended December 31, 2007 the Company reported net income of approximately $4.7 million, or $0.47 per diluted share, compared to $4.8 million, or $0.48 per diluted share, for the nine months ended December 31, 2006.

Carl Johnson, President and Chief Executive Officer, said, "Our year-to-date results reflect the extreme weakness in the cold season through December. The incidence of colds and flu in the general population during the quarter ended December 31, 2007, was the lowest since Zicam was introduced in 1999 (SDI FAN -- illness tracking data). The low level of illness is reflected in lower consumer consumption of cough and cold products. For the 12 weeks ended December 30, 2007, category retail sales (three-outlet syndicated scanner data) of cough and cold products decreased approximately 5%, comp
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SOURCE Matrixx Initiatives, Inc.
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