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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

ared to the prior year; and, during the same period, Zicam sales decreased 7% compared to the prior year. Compounding the impact of the low level of seasonal colds is the previously discussed shift towards lower inventory levels by some large retailers. In the past, we have seen our unit sales and shipments exceed retail unit consumption (by consumers) during the quarters ending December 31 followed by retail consumption exceeding our unit shipments in the quarters ending March 31. However, this year our factory orders were nearly equal to retail unit consumption for the quarter ended December 31, 2007. This change in factory orders more closely mirroring retail consumption leads us to believe factory orders will follow consumption more closely during our fourth quarter ending March 31, 2008. Consistent with our guidance announced January 15, 2008, and in accordance with these ordering trends and recent cold season illness levels, we anticipate fiscal 2008 net sales will be equal to or up to 5% above the $97.6 million recorded in the twelve months ended March 31, 2007 and net income will be between $9.0 million and $10.0 million, or $0.90 to $1.00 per share, compared to net income of approximately $6.5 million for the twelve months ended March 31, 2007."

Mr. Johnson continued, "We recently announced our migration to an in-house sales force. We believe our new sales force will help us achieve new product acceptance at retail, increase distribution, and lower overall sales expense in the future. We continue to review new product initiatives and believe this year's new Zicam Multi-Symptom relief products are performing well. Additionally, we continue to move forward with new product initiatives. I am pleased to report that we have received the initial order for our new Xcid brand antacid from a large national retailer and expect initial shipments to occur by March 31, 2008. Development work has continued on our Zicare oral care product. As discussed previously,
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SOURCE Matrixx Initiatives, Inc.
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